Jack Hightower, CEO and major holder of HighPeak Energy (HPK), recently bought 132,487 shares. The buy increased his stake by less than 1%, and came to a total cost of $2.05 million.
Hightower was the last insider to buy shares with a 164,000 buy back in December 2023, paying just over $2.4 million. The last insider sale occurred around the same time, with a company director selling off about $52,000 in shares. Otherwise, insiders were bullish throughout 2023.
Overall, HighPeak insiders own 84.6% of shares.
The oil and gas exploration company is up about 7% over the past year. That’s underperformed the overall stock market, but is about in-line with the lackluster returns in the energy space.
However, HighPeak shares trade at 13 times forward earnings, and the company was able to increase revenues by 14% over the last year. Those point to shares still being a value at current prices.
Action to take: Investors may want to start building a position at current prices. Any market selloff could be used to add to that stake. At current prices, HighPeak shares pay a dividend of just under 1%.
For traders, shares have been somewhat rangebound, but have been trending higher. The November $17.50 calls, last trading for about $0.80, could see mid-double-digit returns from a further move higher in shares.
Traders should look to take a quick profit, as the stock tends to stall out in the low $18 range.
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 company mentioned in this article.
