Jay Joliat, a director at Earthstone Energy (ESTE), added 20,237 shares. The buy increased his holdings by nearly 10 percent, and came to a total price just under $236,000.
This marks the first insider buy at the company since early 2021. Otherwise, company insiders, including both executives and directors. Over the past three years, the insider sales have been relatively consistent, with only a few periods of insider buys.
Overall, insiders own just over 10 percent of the company.
Shares of the energy exploration and development company are up about 6 percent in the past year, outperforming the S&P 500 by about 16 points.
While the company has yet to post a full profit in the past year, revenues are up 160 percent thanks to rising energy prices.
Action to take: Energy prices have come down in recent weeks, and may decline further on fears of a recession. However, downside is limited due to supply and demand constraints, so a further rally is likely in the months ahead. Investors looking for income will need to look somewhere else, however, as this stock doesn’t pay a dividend.
For traders, the January 2023 $15 calls, last going for about $1.80, can likely deliver mid-double-digit returns in the coming months on a bounce higher in shares. Traders should be mindful of a further downside in energy prices, and look to take a quick profit.
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.