Terrell Crews, CFO at NextEra Energy (NEE), recently bought 2,672 shares. The buy increased his holdings by 8 percent, and came to a total cost of $200,000.
He was joined by two directors, one picked up 4,000 shares for just under $300,000 and more than doubled his stake. Another bought 1,000 shares for just under $75,000. Overall, insiders have been more active as buyers than sellers over the past few years.
Overall, company insiders own 0.2 percent of shares.
The utility company has traded flat over the past year, which has outperformed the overall stock market. Plus, the company grew revenues and earnings by mid-20-percent levels over the past year.
The utility trades at 24 times forward earnings, a bit steep for the utility space. But with large population growth in the company’s operating area of Florida, NextEra has better growth prospects than other players in the industry.
Action to take: Long-term investors may like shares here or on any pullback in the coming weeks or months. The stock yields about 2.3 percent, and the payout tends to increase over time.
For traders, shares will likely continue to trend higher over time. The June $80 calls, last going for about $2.85, can likely leverage a modest move higher in shares into mid-double-digit gains.
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.