Yasir Al-Rumayyan, a director at Uber Technologies Inc (UBER), recently bought 250,000 shares. The buy increased his holdings by 181 percent, and came to a total cost of $5.145 million.
This is the first insider buy since the company CEO bought 200,000 shares last May. Two insiders have been slight sellers of shares over the past year, but overall there has been little activity since the company went public.
Insiders own 0.2 percent of the ride-sharing company.
Shares have lost a quarter of their price over the past year, as the company continued to lose money. However, revenues did rise by 72 percent, and new initiatives appear to be keeping the momentum moving towards higher cash flows.
Action to take: Shares are about 50 percent higher than their 52-week lows, and some pullback may be likely in the weeks ahead. Investors interested in buying shares for the long haul may want to wait to buy in the mid-$20 range.
For traders, shares have tended to pull back from the low $30 range each time there’s been a rally going back to August. That suggests that a put option may be the best trade right now.
The June $27.50 puts, last going for about $2.05, offer mid-double-digit gains or higher on a pullback in the coming months. Traders should look to take quick profits as a downtrend emerges, given the market volatility we’ve seen in recent months.
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.