Naren Gursahaney, a director at
NextEra Energy (NEE), recently picked up 2,000 shares. The buy increased the director’s stake by nearly 6 percent, and came to a total price of just over $147,000.
This marks the first insider buy at the company since March 2020. In that time, company insiders have been regular sellers of shares, even as the stock has trended higher.
Overall, insiders own about 0.25 percent of the power utility.
While shares have been trending up over a two-year period, the stock is now down about 11 percent over the past year. That’s in spite of a 15 percent increase in revenues and the company boasting a 21 percent profit margin, a large one relative for its industry.
Action to take: Investors may like shares here, as the utility pays a 2.1 percent dividend, which can likely continue to move higher over time. Shares are a little pricey at 26 times forward earnings, but for the safety of a utility company, valuation likely won’t go much lower.
For traders, a rebound in shares is likely in the next few months as the market reevaluates its latest move lower. The March $80 calls, last going for about $0.60, offer a potential triple-digit move higher should shares rebound from their recent sharp selloff.
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.
