Norman Wright, a director at First Solar (FSLR), recently bought 465 shares. The buy increased his holdings by 40 percent, and came to a total cost just over $99,900.
The buy marks the first insider purchase since last August, when two officers picked up just over $1 million in shares. Otherwise, company insiders have generally been selling shares of stock, including both directors and officers.
Overall, insiders own 5.2 percent of shares.
The manufacturer of solar panels has seen share soar 180 percent over the past year. That’s far in excess of the company’s revenue growth of 11 percent, even as the company operates at a loss.
Solar technology has improved in recent years, but benefits from higher energy prices as well as incentives such as tax rebates, which have fluctuated in recent years. As long as First Solar can continue to grow its revenues, it should be able to navigate the challenges of the solar panel market.
Action to take: Investors may like shares, given the massive uptrend that the stock has seen over the past year. Chances are further growth is likely in the months ahead, even if the rate of growth slows.
For traders, the September $250 calls, last going for about $16.90, offer mid-double-digit returns in the months ahead on a further rally for shares.
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.