Badrinarayanan Kothandaraman, President and CEO of Enphase Energy (ENPH), recently bought 5,000 shares. The buy increased his stake by less than 1%, and came to a total cost of $301,903.
This is the first insider buy since May, when the company CFO picked up 4,000 shares for $416,979. One company director and a company EVP have been slight sellers of shares in the intervening months. Going further back, insiders were more likely to be buyers rather than sellers.
Overall, Enphase insiders own 3.3% of shares.
The solar energy solutions developer and manufacturer has shed one-third of its value over the past year, and is down over 50% from its peak.
Operationally, Enphase has seen similar trouble, with revenues down by 30% and earnings off by 60%.
Solar power is heavily subsidized, and markets are concerned that solar subsidies will be reduced or eliminated following the election, which has led to a big drop in shares.
Action to take: Shares are likely oversold following the election, and have already been starting to trend higher in recent sessions. They may be a worthwhile investment for contrarian investors now.
For traders, given the recent selloff and base forming in shares, the stock may seek to regain some of its recent losses in the weeks ahead. The January $65 calls, last trading for about $5.70, could see mid-double-digit returns or better if shares can continue higher off their recent low.
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.
