Thomas Meth, president of Enviva Inc (EVA), recently added 5,000 shares. The buy increased his holdings by 1.2 percent, and came to a total cost of just over $254,000.
He was joined by the company Chairman and CEO, who bought 4,943 shares, for about $250,000, and a company EVP also made a similar buy at the same time. At the same time, a company director made a whopping 200,000 share buy, for about $10.1 million.
Going further back, insider activity has been more subdued, with a more even amount of buying and selling.
Overall, company insiders own 3.9 percent of the company.
The maker of wood pellets for fuel generation is down about 19 percent in the past year, about in-line with the overall stock market. Revenue is up less than 4 percent, and the company hasn’t been profitable.
However, with concerns over a conventional fuel shortage this winter in Europe, the company may be poised for decent returns in the coming months.
Action to take: Shares are near a 52-week low and pay a 6.2 percent dividend here. That wouldn’t require much of a rally to reward investors, particularly in today’s markets. Plus, the company sold off on a report from a short-seller, which tends to create an immediate drop that subsequently recovers.
For traders, the April $65 calls, last going for about $2.75, offer a mid-to-high double-digit return on a move higher in shares. Traders may want to take quick profits on a bounce off of the current oversold levels.
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.