Insider Activity Report: Enterprise Products Partners (EPD)

Aj Teague, Co-CEO of Enterprise Products Partners (EPD), recently bought 2,410 shares. The buy increased his  stake by less than 1 percent, and came to a total cost of $63,076.

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  • This is the first buy at the company in just over a month, following a 10,000 share pickup from a company director, at a cost just under $260,000. Other company directors have been steady buyers over the past two years, with no insider sales.

    In total, EPD insiders own 32.7 percent of shares.

    The oil and gas pipeline company is up 10 percent over the past year, lagging the overall market, as energy prices have fluctuated. EPD has seen earnings drop 3 percent, and overall earnings are down 22 percent.

    However, as a pipeline company, EPD acts as a “tollbooth” piece of infrastructure, moving oil and natural gas from where it’s brought out of the ground to where it can be refined and sold.

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  • Action to take: EPD is structured as a partnership, and is designed to provide a high dividend yield. The current payout is about 7.7 percent, which more than makes up for slow-moving capital gains.

    Income investors may like the company as a buy here, or on any further fears in the energy market that take prices lower.

    For traders, shares may move higher from here, as they’re near the low-end of a six-month range.

    The February $27 calls, last going for about $0.15, could see high-double digit returns or better if shares pop higher 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 of the companies mentioned in this article.

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