Roland Burns, CFO at Comstock Resources (CRK), recently bought 20,000 shares. The buy increased his holdings by 2 percent, and came to a total cost just under $199,000.
The buy comes about a week after the company’s VP of Financial Reporting bought 5,000 shares, paying $50,400. And Comstock’s VP of Operations bought 20,000 shares for $201,000. That’s on top of other insider buys going back to last August. There have been no insider sales in the past year.
Overall, insiders own 55 percent of the oil and gas exploration company.
Shares have slid 18 percent over the past year, as oil has come off of last year’s highs. However, Comstock grew earnings and revenues by over 40 percent, and the company sports a 31 percent profit margin, on the higher end of the commodity space.
That’s moved shares to about 5 times forward earnings.
Action to take: Investors may like shares here. Comstock pays a dividend, which yields about 5 percent at current prices, although the payout may be variable depending on energy prices.
For traders, shares have been trending down in recent months, but are oversold and look likely to pop higher.
The June $12 puts, last going for about $0.75, offer mid-double-digit returns in the coming months on such a pop higher for Comstock shares.
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.