Newtyn Management, LLC, a major holder of
PG&E Corp (PCG), recently added to their position with a 2,400 share buy. The purchase increased their holdings by just under 0.2 percent, and came to a total price of just over $58,000.
This is the second buy from the fund this month, following up on another 2,400 share buy. And the fund made a 363,468 share buy in April for over $9.4 million. Two company directors were also small buyers of shares last year. The last insider sales occurred in 2018.
Overall, insiders own 21.6 percent of company shares.
The regulated utility is up 7 percent over the past year. Revenue rose 10 percent, and earnings surged 136 percent higher. While not profitable in the most recent quarter, the stock does currently go for 11 times forward earnings.
Action to take: Given the company’s past with California wildfires and regulators, shares are still a fraction of their prior price. And they don’t pay a dividend yield, so income-oriented utilities investors may want to look elsewhere. But there is potential upside in the months ahead, but investors and traders alike should take profits if a fire breaks out in the company’s service area.
For traders, the June $13 calls, last going for $0.41, look like an attractive way to play any further upside in shares in the next few months.
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.