Insider Trading Report: FireEye (FEYE)

Arthur Coviello, a director at FireEye (FEYE), recently picked up an additional 10,000 shares. The buy increased his stake by over 34 percent, and came to a total cost of just over $201,000.

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  • This marks the first insider buy at the company in the past three years. Company insiders have been exclusively sellers otherwise, typically by C-level executives. The sales look typical of tech companies that provide extensive stock options for employees.

    Overall, company insiders own just 2.1 percent of company shares.

    The cybersecurity firm has seen shares take off over the past few months as cyber attacks have become unfortunately commonplace. Shares of the company are now up 64 percent over the past year, well outpacing the S&P 500, even as the company hasn’t earned a profit.

    Action to take: Shares are near 3-year highs, which is a bit of a warning sign. It’s possible that the company continues higher as cybersecurity plays remain profitable. The company is also trading at a market cap of around $4.1 billion, which could make for a compelling takeover target by a larger tech firm.

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  • Besides buying shares here to play the uptrend, traders can buy the September $22 calls. Last trading for about $1.60, look for mid-double-digit gains or better before taking profits off the table.

     

    Disclosure: The author of this article has no position in the stock mentioned here, but may make a trade this company after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.