Insider Activity Report: Vital Energy (VTLE)

Lori Lancaster, a director at Vital Energy (VTLE), recently picked up 1,000 shares. The buy increased her stake by 134 percent, and came to a total cost just over $45,000.

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  • This marks the first insider buy at the company in the past two years. Company insiders have been sellers of shares over the past two years. That includes the exercise of stock options. Insiders have generally been sellers with shares at prices from $50-89, far higher than where Vital currently trades.

    Overall, Vital Energy insiders own 5.7 percent of shares.

    The oil and gas exploration company is down about 20 percent over the past year. Conventional energy prices have had a move higher over the summer, but have slid in recent weeks.

    Operationally, Vital has struggled as well. Revenues are off 6 percent, and earnings have dropped heavily. However, shares do trade at about 4 times forward earnings. And Vital trades at just 70 percent of its book value.

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  • Action to take: Vital looks undervalued here, and have the potential to move higher, although it may take a stronger move higher in oil prices to make it happen. At present, shares do not pay a dividend.

    For traders, the April 2024 $50 calls, last going for about $3.15, could see mid-double-digit returns in the coming months on a move higher from here. Shares are trading near their base of support following their recent drop.

     

    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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