Insider Activity Report: NextEra Energy (NEE)

John Ketchum, President and CEO at NextEra Energy (NEE), recently bought 13,600 shares. The buy increased his stake by 8 percent, and came to a total cost just over $1 million.

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  • This marks the first insider activity since March, when a company director bought 10,000 shares, paying about $700,000 to do so. And another major holder bought 13,200 shares in February, for a total cost just over $995,500. There has been one small insider sale in recent months.

    Overall, insiders own 0.2 percent of shares.

    The power utility is up about 4 percent over the past year, with another 2.5 percent returns coming from the dividend.

    NextEra has been performing well operationally, with revenues up 132 percent over the past year, and with a profit margin of 27 percent right now. Shares trade at about 22 times earnings, a slight premium to the stock market, but not too expensive for a regulated utility company.

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  • Action to take: Long term investors may like shares at the $75 range or on any drop lower. The dividend yield of 2.5 percent is on the low side for a utility, but NextEra has a history of growth, and the utility is based on a fast-growing region.

    For traders, shares are near the lower end of their trading range over the past year. The November $80 calls, last going for about $2.55, could see mid-to-high 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 of the companies mentioned in this article.

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