Michael White, CFO at Piedmont Lithium (PLL), recently added 2,700 shares. The buy increased his stake by just under 26 percent, and came to a total cost of just over $101,000.
The buy comes just a few weeks after a company director picked up 2,500 shares. Over the past three years, company insiders have been active as both buyers and sellers of the company stock, with sellers last year having the edge over buyers.
Overall, insiders at the lithium producer own about 3.8 percent of the company.
Shares are now down about 47 percent in the past year, as the economic slowdown has started to hit the commodity space. The company is not yet profitable, as they have yet to ramp up production. However, the company does play to a longer-term trend in the growth of sales of electric vehicles.
Action to take: At current prices, shares are likely undervalued relative to the company’s lithium holdings and expected demand in the years ahead. Investors should start buying near current prices, and use further weakness to build a position.
For traders, the January 2023 $55 calls, last going for about $2.90, offer a mid-to-high double-digit upside in the coming months on a rally in the market. Traders may want to scale into the trade gradually, to take advantage of any further weakness in shares in the coming weeks.
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.