Jim Turner, a director at Comstock Resources (CRK), recently added 15,000 shares. The buy increased his holdings by 6 percent, and came to a total cost just under $208,700.
That follows up on a 14,025 share buy made from another director earlier in the month. So far this year, insiders have bought shares on 8 occasions, with zero insider sales. That includes both directors, and executives including the company CEO.
Overall, company insiders own 55 percent of shares.
The oil and gas exploration company is up 65 percent in the past year. Revenues are up a more robust 133 percent. And while not profitable overall in the past year, the company has a 27 percent profit margin, a high amount for a commodity-producing company.
Action to take: Despite being a smaller player, Comstock pays a 3.6 percent dividend yield.
And with shares trading under 7 times earnings, shares have more room to rise, especially if oil prices stay higher for longer. The company could even become a buyout candidate for a larger energy company at its current size.
For traders, shares are likely to continue trending higher. The June 2023 $15 calls, last going for about $2.50, offer mid-to-high double-digit returns in the months ahead. The call is an at-the-money play, so stands a good chance of gaining in value with a lower chance of losing in the months ahead.
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.