Ruth Porat, a director at Blackstone (BX), recently added 277 shares. The buy increased her position by 1%, and came to a total cost of $33,121.
This is the first insider activity since another insider bought back in February, picking up 2,400 shares at a cost of $301,500. Going further back, there’s been a mix of insider buying and selling, with executives and directors more likely to be sellers than buyers.
Overall, Blackstone insiders own 1.0% of shares.
The asset manager has soared 49% over the past year, seeing nearly double the return of the S&P 500.
Improving investment returns in the past year have allowed revenues to soar by 173% and earnings are up over 800%. However, shares are still conventionally on the expensive side, as they trade at 25 times forward earnings.
With asset prices likely to trend higher, however, it’s likely shares will move higher as well.
Action to take: Shares have pulled slightly off their recent 52-week highs, and look set to continue to their longer-term uptrend. At current prices, Blackstone also pays a 2.7% dividend.
For traders, the September $130 calls, last trading for about $5.65, could see mid-to-high double-digit gains in the coming months on a push higher for shares.
Traders may want to take profits on any big one-day jump higher in Blackstone shares.
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.