John Watters, President and COO at
FireEye (FEYE), recently picked up 40,000 shares. The buy increased his stake by over 14.4 percent, and came to a total purchase price of just over $680,000.
This follows up on a 10,000 share buy from Watters earlier this month. Insiders have been active buyers since June of this year, including a director and a company EVP. Going further back, however, insiders have generally been sellers.
Overall, company insiders own about 2.1 percent of company shares.
Shares of the cybersecurity company are up about 18 percent in the past year, underperforming the S&P 500 index by about 12 points. While the firm is currently unprofitable, an increase in customer spending on cybersecurity needs appears to be underway.
Action to take: Investors may like to buy shares to play the company’s improved earnings outlook without the complications of options trading. However, shares don’t currently pay a dividend.
For traders, shares have been trading in a range since last December. Shares have started moving higher in recent sessions after nearing the lower end of the range. That bodes well for a call option trade.
The January $20 calls, last going or about $1.20, stand to move in-the-money on a 10 percent move higher in shares. Traders can likely nab mid-to-high double-digit gains in the months ahead if shares head to the higher end of their trading range—or even start to move to new highs.
Disclosure: The author of this article has no position in the company mentioned here, but may make a trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.