Insider Activity Report: Celanese (CE)

Mark Murray, an SVP at Celanese (CE), recently bought 597 shares. The buy came to a total cost of $93,389, and increased his holdings by 5 percent.

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  • This is the first insider activity since last May. Murray was a buyer twice last year, each time making a buy in the 1,000 share-range, and costing just over $100,000. Another company SVP was also a buyer last May, with a 2,000 share buy totaling just under $215,000.

    Overall, Celanese insiders own 0.4 percent of shares.

    The chemical manufacturer is up 47 percent over the past year, beating the S&P 500 by about 15 points. Shares are also trading right at 52-week highs.

    Celanese has had a mixed year operationally. Revenues are up 9 percent, but overall earnings down 9 percent.

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  • Even with the recent performance and mixed operating results, shares are still inexpensive at 13 times forward earnings.

    Action to take: Chemical companies tend to be cyclical, and the growing economy bodes well for demand for Celanese’s specialty chemicals. Shares can likely continue to trend higher in the coming months as a momentum play.

    Plus, at current prices, shares pay a 1.8 percent dividend.

    For traders, shares are likely to keep trending higher. The June $175 calls, last trading for about $3.95, could see mid-to-high double-digit returns in the coming 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 company mentioned in this article.

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