Bernard Lanigan, a director at CNX Resources Corporation (CNX), recently bought 75,000 shares. The buy increased his stake by nearly 19%, and came to a total cost of $2,010,750. This follows up on another 75,000 share buy back in August, for just over $2 million even.
Other company directors have acquired shares as stock awards over the past few months, and the company CEO converted stock options to shares earlier in the year.
Overall, CNX insiders own 4.3% of shares.
The oil and gas exploration company is up 22% over the past year, about in-line with the overall stock market. Despite a tough year for energy prices, CNX managed to grow earnings by 4%. Even better, CNX sports a hefty 39% profit margins.
Even after their big rally, shares trade for just under 10 times earnings.
Action to take: Investors looking for an energy play could fare well here. Oil prices recently dropped under $70, near a low for 2024, and are looking oversold. If there’s a bounce in oil over the coming months energy stocks like CNX Could see a big bounce from here.
Currently, CNX does not pay a dividend.
For traders, the January 2025 $30 calls, last trading for about $0.95, could see high double-digit returns on a further rally higher in shares into the new year.
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.
