Pierce Norton, President and CEO at Oneok (OKE), recently picked up 8,975 shares. The buy increased his holdings by 2,044 percent, and came to a total purchase price of just under $500,000.
Aside from the sale of shares from a director back in March, this marks the first insider activity since early 2020, when company insiders and directors were massive buyers of the stock. Since that time, the stock is up nearly 300 percent, but has dropped in recent sessions.
Overall, company insiders own 0.6 percent of shares.
Despite the strong performance since the pandemic overall, the stock is now flat over the past year. That’s as shares have gone from trading at 36 times earnings to 14 times earnings, thanks to a jump in revenue and earnings over the past year.
Action to take: Shares are now near a one-year low following a fast selloff. They’re trading at their best valuation in years. And dynamics look strong for oil and gas prices for some time to come. Investors may like shares here, especially as the stock has a sizeable 6.6 percent dividend yield at today’s prices.
For traders, shares will likely rebound from here in the coming months. That makes the January $65 calls, last going for about $2.50, an attractive bet from here. The option can likely deliver mid-to-high double-digit gains in the months ahead.
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.