Mark Haney, a director at Phillips 66 Partners LP (PSXP), recently bought 1,623 more shares of the company. The buy increased his holdings by 5 percent, and came to a total price of just over $72,000.
Another director paid about the same amount the same day, picking up 1,630 shares. This adds to a steady stream of buys from insiders throughout the past three years, with no company insider selling shares over that time.
Overall, insiders own over 74 percent of shares.
The partnership has nearly tripled the return of the S&P 500 over the past year, with a 45 percent rise in shares. The company has also hit a 50 percent profit margin on the back of a strong market for energy prices.
Action to take: Investors may like shares here. As a partnership, the stock pays a hefty 8.3 percent yield, and further increases in shares are likely as the energy market remains strong. The only downside is that the company’s dividend hasn’t changed in over a year, so investors are unlikely to get any growth there.
For traders, shares are likely to keep trending higher. The June $45 calls, last going for about $1.60, offer mid-to-high double-digit gains before expiration as long as energy stocks continue to trend higher.
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.