Marcy Barth, a director at Enterprise Products Partners (EPD), recently added 5,000 shares. The buy increased her stake by 6 percent, and came to a total cost of just under $120,000.
The buy came as the company Co-CEO bought 25,000 shares on two separate days, paying nearly $600,000 to increase his holdings by about 15 percent. Other company insiders have been buyers in recent months, with the last insider sale occurring in March 2021.
Overall, company insiders own 27.2 percent of the company.
Shares of the oil and natural gas pipeline company are up about 10 percent over the past year, in addition to paying out a 7.9 percent dividend.
EPD is still inexpensive at 10 times forward earnings, and shares are about halfway between their 52-week high and low. Even with the rise in energy prices this year, the stock’s price to sales ratio of just under 1.0 makes for an inexpensive trade in the energy space now.
Action to take: The company’s partnership structure provides for a high dividend, which is attractive for income investors. With a market cap of nearly $53 billion, the company is unlikely to be a buyout candidate, but can still spin off considerable income.
For traders, shares are likely trending back towards their 52-week high. The March $26 calls, last going for about $0.24, offer high-double-digit returns on a continued rally in shares from here.
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.