Insider Activity Report: NextEra Energy (NEE)

Kirk Hachigian, a director at NextEra Energy (NEE), recently bought 20,000 shares. The purchase increased his stake by 44 percent, and came to a total cost of $1,116,700.

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  • This is the first insider activity of the year. Several company directors, as well as the company President and CEO, bought shares last year. Two company insiders sold shares in the past year as well, with one of those sales coming from the exercise of stock options.

    In total, NextEra insiders own 0.2 percent of shares.

    The utility company is down 23 percent over the past year, as rising interest rates have resulted in a decline in share price. The declining share price has pushed yields up to 3.3 percent.

    Operationally, results have been mixed. Revenues are up 11 percent, but earnings are down 21 percent over the past year.

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  • The mixed results have taken shares to 16 times forward earnings, a discount to the valuation that shares usually trade at.

    Action to take: Long-term investors may like shares here, as interest rates are likely to decline in the months ahead. That could send shares higher. Plus, NextEra has a history of increasing its dividend payout over time.

    For traders, shares have pulled back in the coming weeks, but look set to start trending higher. The June $60 calls, last trading for about $2.10, could see mid-double-digit returns on a trend 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 company mentioned in this article.

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