Charles Bunch, a director at Marathon Petroleum Corp (MPC), recently picked up 1,000 more shares. The buy increased his stake by 3.7 percent, and came to a total purchase price of just under $65,000.
This marks the first insider activity since June 2019, when another director bought 12,500 shares. Going back further over the past three years, insiders have generally been buyers, with a few periodic sales from company executives.
Company insiders own 0.3 percent of company shares.
Shares have surged 56 percent in the past year as energy prices have moved higher following a rebounding economy. While the company isn’t back to positive earnings yet, revenue is up 86 percent and the company’s margins are improving.
Action to take: With energy prices likely to stay at their current prices or higher for some time, shares may continue to appreciate in value in the months ahead. Investors can buy shares to play this upside while also earning an annual dividend of about 3.6 percent.
Traders might like the April $70 calls. Last going for about $2.35 after Friday’s drop, the option could deliver high-double to low-triple digit gains, particularly on any move higher in energy prices in the next few months. Traders may want to take profits if a new development leads to a potential for a big drop in energy prices, such as increased OPEC production.
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.