Insider Trading Report: FutureFuel Corp (FF)

Donald Bedell, a director at FutureFuel Corp (FF), recently picked up 10,000 shares. The buy increased his stake by 17 percent, and came to a total purchase price of $9,660.

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  • This marks the first insider buy since a director picked up shares in March of 2020. Two insiders sold in 2020, otherwise, company insiders haven’t been particularly active. Overall, company insiders own over 41 percent of shares.

    The company manufactures biofuels and related chemicals. Despite a rise in energy prices in the past year, shares have lost 11 percent, against a gain of over 35 percent for the S&P 500.

    Earnings have been down as well, but the drop in shares have made the company its most attractive relative to its assets in over a year.

    Action to take: Investors may like shares here, as biofuels are a potential alternative as traditional sources of energy rise in prices. And shares pay a 2.4 percent dividend at current prices, giving investors the opportunity to get paid to wait.

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  • For traders, the November $10 calls are the at-the-money trade. Last going for about $1.35, a move higher in shares in the coming weeks could lead to high-double-digit profits. As with any call option trade, look to take some profits on a move up and clear the trade before the time premium starts to heavily decay ahead of expiration.

     

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