Insider Trading Report: Piedmont Lithium (PLL)

Jeffrey Armstrong, a director at Piedmont Lithium (PLL), recently picked up 2,500 shares. The buy increase his stake by more than 14 percent, and came to a total price of just over $174,000.

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  • This follows up from a 4,000 share buy from another director, Susan Jones, the day before. She spent over $292,000 to make the buy. Other than an insider sale around the same time, this is the first insider activity at the firm since 2009.

    Company insiders overall own just under 0.6 percent of company shares.

    The lithium company is up over 980 percent in the past year, as soaring electric vehicle demand has created a rush for companies to acquire lithium-related assets. The metal is a key component for rechargeable battery technology beyond electric vehicles as well.

    Action to take: Shares have risen sharply on the expectation of future demand for electric vehicles and rising lithium prices. They could easily come back down a bit, given the strong rise in shares and the company’s high valuation relative to its lack of revenue or earnings.

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  • Action to take: Investors may still like shares on any pullback, as long as they’re willing to hold for the long haul.

    For traders, the current trend is still up, but it’s flatlined in recent weeks with a pullback to the 50-day moving average. That makes the setup ideal for buying shares and writing covered calls for current income, or selling put options as a means of buying shares at a lower price. The November $60 puts, for instance, could be sold right now for about $7.50, or $750 per contract.

     

    Disclosure: The author of this article has no position in the company mentioned here, but may make a trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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