In essence, a certain chief operating officer just made a $1 million bet that the price of shares of his own company will soon be going up.
But he’s not the only one – 5 more insiders for this same company made purchases of their company’s stock.
Are they grabbing at a lifeline or do they know something that could push share process through the roof?
Let’s look at some of the facts before digging into the possibilities here…
The company and stock in question is Enterprise Products Partners L.P. (EPD), which provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products in the United States and internationally.
EPD now trades at $26 per share less than a year removed from heights of $39 per share last September.
As far as the income statement is concerned, EPD’s annual gross profit is strong with a significant increase in each of the last 3 years. However, the quarterly gross profit has dipped in the last 2 quarters.
And EPD just experienced a purchase of approximately 140,500 shares by various insiders within a single week, which adds up to a value of more than $3.9 million.
So the big question is:
Are EPD insiders confident that the share price is set to climb, or are they desperate to keep shares from falling further?
‘Why now?’ is what I really want to know.
Well, the recent earnings report gave us some mixed messages. While EPD missed 2nd quarter earnings estimates, the results have been called “satisfying”.
But I’d much rather trust the actual price and recent history of a stock than what people are saying about. Right now, EPD isn’t giving me a reason to buy. However, this strong insider buying is forcing me to keep an eye on this stock.
If the insiders are buying based on good information, that will soon start showing up in the share price. If that happens, it could be the start of some big profits for anyone who gets in early.
And Midas Premium subscribers will the be the first to know if this stock gives me a buy signal.
