BUY ALERT 9/1/21

FireEye (FEYE)

According to company documents, FireEye (FEYE) operates as an intelligence-led security company.

The firm engages in intelligence-based cybersecurity solutions designed to prepare for, prevent, respond to, and remediate cyber attacks.

Founded in 2004, the FireEye went public in late 2013 and quickly became the darling of Wall Street.

Shares surged from $35 to $97 in just four months before starting a multi-year downtrend that saw shares fall by 92%.

But last year, FEYE came back to life.

Despite this meteoric rise off its lows, not a single insider bought the stock.

In fact, no one at the company has bought since 2016.

Until last month…

The President & COO, along with the Executive Vice President and a company director all made buys in their personal accounts.

These insiders were likely reacting to the stock’s drop following its latest earnings release.

Executives clearly believe this dip is unwarranted, and they are betting their own money shares will soon be worth more.

Luckily, we don’t have to risk much on this trade to see if they are right.

FEYE made a low of $16.62 following last month’s gap down earnings miss.

If the stock takes out that low, I don’t want to own the stock. So, we can work a closing stop at $16.50 to risk just 9.6% on the trade.

Action to Take:  Buy FireEye (FEYE) stock at the market. We will work a closing stop at $16.50.

Speculators may consider the FEYE Dec21 $22 call options (.FEYE211217C22).

Use a buy limit order near the middle of the spread (currently $0.51 x $0.58).