Bruce Czachor, EVP and CLO of Piedmont Lithium (PLL), recently picked up 1,933 shares. The buy increased his holdings by 22.5 percent, and came to a total cost of just under $100,000.
The buy came amid another director buy in December 2021 for 2,500 shares, but amid two insider sales, including the company President and another EVP. Overall, company insider sales have outpaced insider buys in the past year, except for a major owner making some big buys.
Overall, company insiders own 3.7 percent of shares.
The lithium company soared 78 percent in 2021, more than double the return of the S&P 500 index. The growing use of lithium for rechargeable batteries, particularly in electric vehicles, were a part of the company’s move higher.
The company had an unprofitable year, but could turn to profitability this year if lithium prices continue to trend higher.
Action to take: For investors looking for a way to play the growth of electric vehicles and battery tech without buying into any specific brand or technology company, the underlying commodity is the way to go. Shares can likely continue to perform well with a bull market for lithium under way. The downside? Investors won’t see a dividend for a while.
For traders, betting on the uptrend can be done with leverage. The August $75 calls, last going with a bid/ask spread of about $4.90, could be a potential double or better in the coming months if the uptrend in shares continues.
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.