Insider Trading Report: EOG Resources (EOG)

Michael Kerr, a director at EOG Resources (EOG), recently bought 50,000 shares. The buy increased his stake by nearly 47 percent, and came to a total purchase price of $4.3 million exactly.

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  • This marks the first insider buy at the company in the past three years. Company insiders have typically been sellers of shares. The sales have been clustered by company executives, and appears to be based on the exercise of stock options.

    Company insiders own just 0.4 percent of shares.

    Those company insiders are missing out, as the stock is up nearly 88 percent over the past year, more than triple the 25 percent return in the S&P 500 over the same timeframe.

    Rising energy prices also make share still look inexpensive, trading at just under 10 times forward earnings.

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  • Action to take: Investors may like shares as a way to play out today’s high-priced energy trends. The stock pays a current dividend yield of 3.4 percent, and the company nearly doubled the yield when it last made a change based on rising rates.

    With energy prices likely to fully rebound from last week’s big loss, traders may like a call option trade like the April $100 calls. The option last went for about $4.50, and on a move higher in shares, the option could deliver mid-to-high double-digit profits in just a few months.

     

    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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