Insider Activity: Encana (ECA)

CEO, Directors, continue to pick up shares.

On Wednesday, August 7th, Encana (ECA) CEO Douglas Suttles picked up another 6,000 shares of the oil and gas exploration company. The $24,000 he spent raised his total stake to over 200,000 shares.

This isn’t his first buy this month. He also bought 10,000 shares on August 6th, paying nearly $42,000 as well. And he isn’t alone, as multiple directors have been buyers since the start of the month.

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  • Director Fred Fowler picked up 25,000 shares—paying about $100,000—on August 7th. And Director Howard Mayson picked up 5,000 shares on August fist, paying about $22,500.

    Action to take: We like companies where there is a group of buys by insiders, especially when the CEO is one of them. With oil prices hitting a low for the year, any rebound in oil prices should translate into higher prices for energy companies like Encana.

    We like shares up to $5.00 at current prices on a rebound in energy, although on a down day traders may be able to get in under $4.00, the lowest price paid by insiders recently.

    Speculators may want to look at the January 2020 $7.00 call options, which trade for about $15 per contract and could move far higher on a percentage basis—although shares may not move that high before expiration.