Ted Dosch, a director at UGI Corp (UGI), recently picked up 10,000 shares. The buy increased his holdings by over 41 percent, and came to a total cost of just over $374,000.
This marks the first insider buy of the year. Insiders have been both buyers and sellers in the past year, with massive insider buying back in August overwhelming insider sales. Overall, insiders own about 0.6 percent of shares.
The utility has been a relative underperformer compared to the overall market, with shares down about 10 percent in the past year. With shares trading at 12 times earnings, and with solid earnings growth offsetting a slight drop in revenue, the utility appears well-positioned relative to peers in the sector.
Action to take: Shareholders can buy shares here and get a 3.5 percent dividend yield. With interest rates near zero and with capital gain potential, investors looking for current and future income are in a good place here.
For traders, the current uptrend in shares underway looks likely to continue. The July 2021 $40 calls, trading for about $2.00, are a solid bet here. Traders can likely leverage a small double-digit gain in shares into a mid-to-high double-digit gain with this trade, which could likely move in-the-money well before the option expires.