Michael Bless, a director at Piedmont Lithium (PLL), recently bought 1,750 shares. The buy is an initial stake for the director, and came to a total cost of $105,250.
This is the first insider buy since last July, when the company CFO bought 2,700 shares, paying just over $101,000, at a price of about $37.50 for the stock. Since then, multiple insiders have been sellers of shares, including the company CEO and CFO.
Overall, insiders own about 9 percent of the company.
The lithium producer has been volatile, and shares are now down about 12 percent over the past year. Piedmont is an early-stage company, still developing a commercial mining operation, so there have been no meaningful revenues or earnings.
However, the company is on track to become one of the largest producers in North America, and stands to become a key supplier to the rapidly-growing electric vehicle market.
Action to take: Shares have been somewhat rangebound, and are around the middle of their range. Investors interested in the long-term prospects can start buying under $55 per share to get a reasonable valuation for the company’s future growth potential.
For traders, shares are trending down, and are around the middle of their trading range. They’re likely to move lower in the weeks ahead before moving higher. The May $45 puts, last going for about $2.70, offer mid-double-digit returns on a further decline in shares from here.
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.