Kirk Hachigain, a director at NextEra Energy (NEE), recently added 10,000 shares. The buy increased his holdings by 25 percent, and came to a total cost of $700,000.
Insiders have been notable buyers of shares so far this year, with 8 total buys. That includes both company executives, including the CFO, as well as directors. The last sale occurred from an option exercise back in December.
Even with the recent buys, company insiders own just 0.2 percent of shares.
NextEra has performed about in-line with the overall stock market, dropping about 10 percent in the last year.
However, the utility has some population growth trends behind it, which led to a 22 percent rise in revenue in the past year. Plus, NextEra sports a 20 percent profit margin, even as it’s aggressively expanded into green energy sources such as solar.
That makes it well positioned for defensive investors, with some solid income along the way.
Action to take: Investors looking for steady growth and income may like shares at current prices. NextEra currently yields about 2.7 percent, and the company has done well raising its dividend payments over time.
For traders, shares are near the lower end of their trading range of the past year, and look set to move higher. The June $85 calls, last going for about $0.62, offer mid-to-high double-digit returns in the coming 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.