Here’s The Inside Scoop on Our Trades
Welcome back to another Insider Edge Weekly Update. Each and every Tuesday, we will be providing an update on the stocks that are being bought and owned by company insiders that are set up for big gains over the coming days and weeks.
And in a moment, we’ll be looking at our current collection of stocks and how they stand. But first, we want to showcase our profit-taking in one of our stocks last week for a nice gain.
Sensient Technologies
Sensient Technologies (SXT) is in the business of making flavors and fragrances for a host of consumer products as well as food and beverages.
The last three months have seen 43 buys for $756,000 worth of stock.
Last month, we issued a buy alert on SXT following heavy insider buying. The entry price was set at $92.40, and on Nov. 17 we issued a partial sell alert at the then price of $105.96 for a profit of 14.68%.
The other half should be held with a raised stop now at $93.00. And with the current price of $102.54, the second half of the shares still are sitting with a paper gain of 10.97%.
If you ever wonder how I track down company insider buys and the stocks to buy, including SXT, watch my on-demand instructional video session on the Insider Edge website right here.
Insider Round-Up
Here is the current collection of buys for Insider Edge. For the full rundown on these and the rest of the trades, check out our Write-Ups here and our Trade Alerts Tracker here.
Calithera Biosciences
Calithera Biosciences (CALA) is the San Francisco, California-based biopharmaceutical company focused on cancer and other diseases and threats, including immune-system threats and ailments.
Recently, the firm decided to terminate a phase-2 trial based on poor observable results in patients treated with telaglenastat in interim analysis. In other words, the drug wasn’t working.
As expected, the stock sold off hard on the news.
Calithera Biosciences Price — Source: TradingView
CALA finished the day down 55%. But this could be an overreaction by Wall Street. At least insiders believe it was…
Christopher Molineaux, the Senior VP of Development, Director Jonathan Drachman and CEO Susan Molineaux all took advantage and bought the dip in their personal accounts.
These are the first insider buys from anyone at the company since mid-2019. And for Drachman, it is a first-time buy.
CALA stock currently trades for $0.87 per share. This makes it a “penny stock” and therefore higher risk.
Some investors may choose to pass on it because of that fact. However, the all-time low is around $0.81. So, one doesn’t have to risk a lot to see if the bottom is in.
Calithera reported earnings recently, showing a smaller loss than analysts anticipated. So far, the stock has continued higher following the news on above average volume.
It is impossible to know if the low is in for sure, but for 11 cents of risk, I think it’s worth a stab at the long side.
Per the Trade Tracker, CALA remains a buy with a stop at $0.81.
Energy Transfer LP
Energy Transfer LP (ET) is a passthrough company set up as a limited partnership (LP). This means that it avoids traditional corporate income taxes, and its distributions to shareholders come with additional tax advantages, making the dividends all the more valuable.
Energy Transfer owns and operates a collection of natural gas, crude oil and other petroleum product pipelines and storage facilities in prime markets in the US, including principal basins where US gas and oil reserves are easy to access.
It also has co-ops with its investments in distribution of refined products including gasoline (petrol) diesel and jet fuel as other distillates and refined products with Sunoco (SUN). And for compressed natural gas, it also has another co-op investment with USA Compression Partners LP (USAC).
All of this puts Energy Transfer right smack in the middle of a vital and soaring market. And its company insiders are getting on board with more of their own money.
Over just the past three months, company insiders have made eight buys for $3.2 million worth of the company stock. And over the past 12 months, they’ve bought $6.5 million worth of stock with their own money.
Energy Transfer continues to pipe and store more and more valuable natural gas, crude oil and other products. And with its co-ops noted above, all of this is bringing in soaring revenue gains.
Revenue is up for the latest quarter by 105.79% over the same quarter of last year. And that revenue comes with good margin, as the gross profit margin is running at a current level of 16.80%.
And the company pays its shareholders well, including its company insider owners with a dividend yield of 6.43%.
Energy Transfer Price — Source: Dow Jones
The trade was initiated at $9.66, and with the current price at $8.91, we’re a bit off this week with a minor loss at the moment of 7.76%.
Per the Trade Tracker, ET remains a buy with a stop at $8.50.
Evergy, Inc.
Evergy, Inc. (EVRG) is the Kansas City, Missouri-based power utility that has been increasing its green and renewable energy portfolio – particularly with wind turbines that capitalize on midwestern wind flows for more power.
Recently, several top insiders began buying large chunks of the stock in their personal accounts. Combined, they have invested more than $12 million in the stock.
The CEO and CFO seem to buy in tandem. They are both buying shares for only the second time. Their first purchases came this March when they bought the stock right off its low before a 30% advance higher.
Director John Wilder started buying a month later, and he has made four additional buys over the last few weeks.
EVRG stock does not see routine insider buying, making the recent cluster buy even more significant. I suggest following the lead of those on the inside and taking a position in Evergy.
Evergy Price — Source: Dow Jones
The trade was initiated at $63.56, and with the current price at $66.37, we already have a small gain from the trade amounting to 4.42%.
Per the Trade Tracker, EVRG remains a buy with a stop at $57.00.
Innovative Food Holdings, Inc.
Innovative Food Holdings, Inc. (IVFH) provides access to fresh and super-high quality food products for restaurants and home delivery.
The last three months have seen one buy for $3.1 million worth of stock.
Innovative Food Holdings Price — Source: Dow Jones
The trade was initiated at $0.45, and currently we’re sitting at $0.38, so we’re down seven cents for the trade at the moment.
Per the Trade Tracker, IVFH remains a buy with a stop at $0.26.
Mandiant, Inc.
Mandiant, Inc. (MNDT) is a specialty security and cybersecurity company that continues to capitalize on the unfortunate threats and defense against hacks and data theft. It was recently renamed post the sale of FireEye products to McAfee Corp. (MCFE).
The last three months have seen nine buys for $129,000 worth of stock.
Mandiant Price — Source: Dow Jones
The trade was initiated at $18.31, and currently we’re sitting at $16.55 close to our stop at $16.50 for a loss so far of 9.61%.
The stock did trade briefly below our stop level today, but we will continue to hold this position for now unless the stock closes below that level.
Per the Trade Tracker, MNDT remains a buy with a stop at $16.50.
Ball Corporation
Ball Corporation (BLL) is a long-standing company that specializes in providing metal containers primarily for consumer food products.
The last three months have seen 17 buys for $119,000 worth of stock.
Ball Corporation Price — Source: Dow Jones
The trade was initiated at $94.41, and currently we’re sitting at $94.14 for a minor loss so far.
Per the Trade Tracker, BLL remains a buy with a stop at $87.50.
PROG Holdings, Inc.
PROG Holdings, Inc. (PRG) is a lease or rent to own company for credit and cash-challenged customers throughout forty-six states with thousands of retail partners.
And it is a major leader for the fintech-focused buy-it-now-pay-later (BNPL) market with its instant financing for in-store and online transactions.
The last three months have seen five buys for $18,000 worth of stock.
PROG Holdings Price — Source: Dow Jones
The trade was initiated at $44.75, and currently we’re sitting at $47.35 for a nice gain so far at 5.81%.
Per the Trade Tracker, PRG remains a buy with a stop at $39.95.
Thanks for reading. I’ll be back in touch next Tuesday with another Weekly Update.
Best wishes for your trading,
Ross Givens
Editor, Insider Edge
