Insider Activity Report: Enterprise Products Partners (EPD)

William Montgomery, a director at Enterprise Products Partners (EPD), recently bought 50,000 shares. The buy increased his holdings by 77 percent, and came to a total cost of $1.33 million.

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  • This marks the first insider buy since March, when one of the company’s co-CEOs bought 15,835 shares for just under $401,000. There have been nearly two dozen insider buys over the past two years, with no insider sales.

    Overall, company insiders own 32.7 percent of shares.

    The oil and gas pipeline company is up about 2 percent over the past year, reflecting the range-bound trading in the energy market. That does not include the company’s 7.5 percent dividend, as most earnings are paid out as distributions to investors.

    The company’s pipeline operations have performed well, keeping to a 10 percent profit margin even as revenues declined off of 2022’s peak.

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  • Action to take: Investors looking for current income could fare well with EPD. Management has managed to slightly increase the dividend payout in the past year, pushing the yield slightly higher. And shares are valued at 10 times forward earnings, so EPD could absorb a short-term downturn in oil.

    For traders, may have some slight upside ahead in the coming months. The December $27 calls, last going for about $0.65, could see mid-double-digit returns in the months ahead.


    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 of the companies mentioned in this article.

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