Carin Barth, a director at Enterprise Products Partners LP (EPD), recently picked up 5,000 shares. The buy increased the director’s stake by just over 8 percent, and came to a total cost of $108,000.
This adds to a number of insider buys throughout the year, including a director buy last month and two buys from the company Co-CEO back in September. Over the past three years, insiders have only been buyers, with no insider sales.
Currently, insiders own 32.5 percent of company shares.
The pipeline and services company to the energy industry has gained about 10 percent in the past year. That’s a big underperformance relative to the S&P 500 as well as the energy sector as a whole. However, that gap is significantly narrowed thanks to the partnership’s dividend.
Action to take: For traders looking for income right now, the 8.3 percent current yield is quite high, although it hasn’t been raised in the past year.
Traders may want to make a bullish bet here, as the stock is about halfway between its trading range but heading higher. The June $23 calls, last going for about $0.62, could deliver high-double to low-triple-digit returns in the next few months. Shares have a tendency to pull back after hitting $25, so look to take profits if shares move that high.
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.