Piedmont lithium stock doubled in 2021, and even as the year was closing in, two insiders bought shares in the metals miner for electric-vehicle batteries.
Piedmont (ticker: PLL) stock ended last year with a 98% gain, compared to a 27% gain in the S&P 500 index.,
Despite the outperformance, the stock ended 2021 at $52.46, well below the 52-week intraday high of $88.97 set in March.
As with all sectors of the EV sector, the company got a lift from the Biden administration’s push for EVs. This represents an opportunity for the US to source lithium, unlike China, and looking for Piedmont region of North Carolina. The company has a deal to supply lithium to Tesla (TLSA) after a mine becomes operational. Executive Vice President and Chief Legal Officer Bruce Cazachor paid $100,000 for 1,933 shares on December 29, an average price per share of $51.49. According to a form he filed With the Securities and Exchange Commission, Czachor now holds 10,517 shares.
Czachor said he bought the stock because “I believe in the company’s long-term prospects.” He declined to indicate a fair price for the shares, but noted that he has seen “success and improvement in the company” and that the stock should trade back to an earlier, higher level. “I am optimistic on the prospects,” he said.
Armstrong did not respond to a request for comment. He was earlier buying the stock in 2021 as well, $127,725 paid in September for 2,500 shares, an average per-share price of $51.09, and $174,000 paid in July For 2,500 shares, the average price per share is $69.62.
JPMorgan analyst Tyler J. Langton thinks Piedmont can begin construction on the lithium mine by the end of this year. The company could obtain state mining and air permits for the project by the end of the first quarter or as early as the second, Langton wrote in a December 14 research report.
“Given its location, eco-friendly profile and low-cost position, we are confident that Piedmont will be an attractive partner for companies in the EV supply chain,” Langton wrote. He rates the stock at overweight with a price target of $84.
The Inside Scoop features a regular baron covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Because of their insider positions, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.