Richard Brannon, a director at Energy Transfer LP (ET), recently picked up 137,860 shares. The buy increased his holdings by just over 27 percent, and came to a total purchase price just over $1.3 million.
This is the first insider buy in months. Company insiders were more active buyers late last year and into the start of this year. Overall, there have been dozens of buys from directors and executives in the past three years, with only one insider sale.
Overall, company insiders own about 19.7 percent of shares.
The oil and gas pipeline and storage company is about flat over the past year. Earnings have slid about 61 percent, and revenue has risen nearly 20 percent, amid a period of high energy prices and strong demand.
The stock trades at 6 times forward earnings, and is going for just under book value following a recent pullback in shares.
Action to take: Investors looking for a high yield now can get a return of nearly 8 percent at present prices. And there’s the potential for a slight gain in shares if oil prices continue to trend higher following their recent pullback. That could easily lead to double-digit returns in the next year simply from buying and holding the stock.
For traders, the October $11 calls, last going for about $0.53, offer mid-to-high double-digit returns on a further rally in shares in the weeks ahead.
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.