Blackstone Holdings III, a major holder of Cheniere Energy Partners (CQP), recently added 44,517 shares to their holdings. The buy increased the firm’s stake by 0.34 percent, and came to a total price of just over $1.8 million.
Other major owners have also been buyers in the past few weeks, with the last insider sales occurring back in March with a massive 2.3 million share sale. The last activity from a non-major holder came from a director sale back in late 2020.
Overall, insiders own 49.6 percent of company shares.
The liquefied natural gas facility company has underperformed the overall market in the past year. However, as a partnership, the shares also pay a high dividend yield.
Thanks to robust natural gas prices and underinvestment in the energy space over the past few years, shares trade at less than 12 times forward earnings as revenue is in the rise.
Action to take: Investors may like shares here, as natural gas prices are likely to remain strong this winter season, which supports the company’s LNG efforts. The partnership shares recently raised the dividend slightly for a current yield of 6.4 percent right now.
Traders may want to be a bit wary of any high-yielding play in the energy space for a big move, especially as energy has remained strong the past few weeks.
That said, the March $50 calls, which last went for about $0.35, offer a lot of upside potential if natural gas prices remain strong this winter season. There’s a potential for triple-digit returns here, but the option also has a high possibility of expiring worthless.
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.