Thurman Rodgers, a director at
Enphase Energy (ENPH), recently bought 27,900 shares. The buy increased his holdings by 2 percent, and came to a total cost just over $4.56 million.
The buy came right after the director bought 32,900 shares, paying $5.41 million, to increase his holdings by 3 percent. They’re the first insider buys at the company in over two years, as insiders have exclusively been sellers until these buys.
Overall, insiders at the solar panel development company own 2.5 percent of shares.
The stock has now traded flat over the past year, following a steep dive as the company reported that higher interest rates were weighing on solar panel sales.
The pullback comes as the company remains on a growth kick, with both earnings and sales up double-digits over the last year.
Action to take: Shares have gone from nearly 198 times earnings last year to 41 times forward earnings in the most recent quarter. While not cheap, the company has strong growth potential as consumers and companies continue to develop solar energy solutions.
For traders, look oversold following the recent drop, and are likely to rebound in the coming weeks. The July $180 calls, last going for about $11.15, offer mid-double-digit returns or better depending on how quickly and strongly the stock rebounds in the coming weeks.
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.