Dan Hill, a director at NuStar Energy (NS), recently picked up an even 5,000 shares. Paying about $10 per share, the buy came to $50,000. It increased his total holdings to 59,214 shares.
This is the first insider buy in six months. Insider buying for 2020 shows a number of insider buys, at prices anywhere from $6 at the March lows to $12. The buys include directors and C-suite executives.
Shares have traded between $5 and $30 in the past year at the oil and gas midstream company with a focus on pipeline and storage facilities. That means company insiders have shown good judgment in buying in the lower half of the company’s range.
- 25-Year-Old Prodigy Reveals Secret to Soaring Stocks
“Old school” folks might be skeptical of listening to financial advice from someone half their age, but this stock whiz beat out 15,000 experts to claim #1 title.
Action to take: As a pipeline company structured as a partnership, it makes the most sense to buy shares. The yield has been pushed up to double-digits with a drop in the share price. However, due to declining revenue, the payout may be cut. Investors should still see 8-10 percent yields, however, far above most dividends elsewhere.
For options traders, the seasonal strength of natural gas may be good for a move higher in shares in the next few months. The March 2021 $12.50 calls trade for about $0.90 based on bid/ask spread. Those options could move mid-to-high double digits if shares head up with colder weather.