Joseph Kim, President and CEO of
Sunoco LP (SUN), recently added 5,000 shares. The buy increased his holdings by 1%, and came to a total cost of $252,516.
Kim also bought 5,000 shares last June, paying $177,475 for that tranche. One company director bought 1,500 shares for just over $78,000 last month. There has been one insider sale over the past year from the company’s General Council.
Overall, Sunoco insiders own 21.5% of shares.
The oil and gas refining and marketing company is up 16% over the past year. That’s lagged the overall S&P 500, but is reflective of the slow performance in the energy sector.
Shares trade at 9 times forward earnings, and about 0.2 times their price-to-sales. That indicates that there could be further upside ahead for Sunoco, particularly as demand for oil tends to rise during the summer driving months.
Action to take: Shares have pulled back significantly from their 52-week highs, and shares look oversold enough to be near a buying point.
As an LP, Sunoco is structured to pay a high dividend. Shares currently pay a 7% yield.
For traders, the September $55 calls ,last trading for about $1.05, could see mid-to-high double-digit returns.
Traders should look to take profits if shares see a quick spike higher, which is likely to occur if there’s a similar spike in oil prices.
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.
