Totalenergies Se, a major holder of Clearway Energy (CWEN), recently added 71,980 shares. The buy increased the fund’s position by $2.42 million on top of its existing position.
The fund last bought shares in mid-2021. Otherwise, trading has been relatively quiet, with 2 buys from a company director, and a sale from the company President and CEO back in November.
Overall, insiders own about 1.1 percent of the renewable energy utility.
Shares are down about in-line with the overall stock market in the past year. Revenues have declined about 16 percent in the past year, but Clearway has been profitable, with shares going for about 6 times earnings right now.
Action to take: Shares may be under some pressure in a slowing economy, as conventional energy prices drop which makes alternatives look less attractive.
However, there’s a long-term growth trend underway in the use of alternatives, and Clearway stands to benefit. Plus, the utility pays investors a 4.6 percent dividend at current prices. That makes for an attractive long-term buy now.
For traders, shares have started to trend up in recent sessions off of their 52-week low. The August $35 calls, last going for about $0.75, have a relatively high open interest, and could benefit from a further rally in the coming weeks. The option can likely deliver mid-double-digit returns on a move higher.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.