Thomas Jorden, CEO, President and Chairman at
Coterra Energy (CTRA), recently added 44,000 shares. The buy increased his holdings by 3.75 percent, and came to a total price of just over $1.02 million.
This marks the first insider buy at the company since late 2019. Insiders have otherwise been regular sellers of shares at the energy exploration and production company, primarily by employees at the Vice President level.
Overall, company insiders own 1.6 percent of shares.
Thanks to a strong energy market, shares are up 37 percent over the past year, more than twice the return of the S&P 500. Earnings are up a staggering 616 percent and revenues up 419 percent, and best of all the company sports a 33 percent profit margin, more in line with a tech company than an energy play.
Action to take: Shares are still going for less than 6 times forward earnings. And the company recently raised the dividend payout, for a starting yield of 1.9 percent. The stock seems well positioned, even if overall energy prices come off their latest spike higher from recent weeks.
For traders, shares look attractive on the long side here. The July $26 calls are a near-the-money trade, going for about $2.10. They could likely deliver mid-to-high double-digit returns before expiration.
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.