According to the Insider Cluster pages, a Premium feature of GuruFocus, four energy stocks with high insider buys over the past three months are Energy Transfer LP (ET, Financial), Continental Resources Inc. (CLR, Financial), Riley Exploration Permian Inc. (REPX, Financial) and Tidewater Inc. (TDW, Financial).
Crude oil prices approach seven-year high
On Tuesday, the West Texas Intermediate crude oil price soared to $85.16 per barrel, its highest level since October 2014. Oil prices surged on the back of increased tensions across Middle Eastern countries.
As such, investors may find opportunities in energy stocks that have high insider buys over the past three months. Legendary investor Peter Lynch said that while company insiders may sell stock for several reasons, insiders buy shares only when they think the company’s price is due to appreciate in value.
Energy Transfer
Five insiders purchased shares of Energy Transfer (ET, Financial) over the past three months. The total number of shares purchased was 16,424,609.
Shares of Energy Transfer traded around $9.64, showing the stock is fairly valued based on Tuesday’s price-to-GF Value of approximately 1.
GuruFocus ranks the Dallas-based company’s profitability 6 out of 10 on several positive investing signs, which include profit margins and returns outperforming more than 68% of global competitors despite three-year revenue decline rates underperforming over 83% of global energy companies.
Gurus with holdings in Energy Transfer include David Abrams (Trades, Portfolio)’ Abrams Capital Management and David Tepper (Trades, Portfolio)’s Appaloosa LP.
Continental Resources
Five insiders purchased shares of Continental Resources (CLR, Financial) over the past three months. The total number of shares purchased was 487,520.
Shares of Continental traded around $52.14, showing the stock is modestly overvalued based on Tuesday’s price-to-GF Value ratio of 1.25.
GuruFocus ranks the Oklahoma City-based company’s profitability 7 out of 10 on several positive investing signs, which include a high Piotroski F-score of 8 and profit margins and returns that are outperforming more than 76% of global competitors.
Riley Exploration Permian
Four insiders purchased shares of Riley Exploration Permian (REPX, Financial) over the past three months. The total number of shares purchased was 145,273.
Shares of Riley Exploration Permian traded around $28.08, showing the stock is significantly undervalued based on Tuesday’s price-to-GF Value ratio of 0.40.
GuruFocus ranks the Oklahoma City-based company’s financial strength 5 out of 10 on the back of debt ratios outperforming 60% of global competitors despite the company having a modest Piotroski F-score of 4 and a weak Altman Z-score of 1.76.
Tidewater
Four insiders purchased shares of Tidewater (TDW, Financial) over the past three months. The total number of shares purchased was 137,182.
Shares of Tidewater traded around $12.43, showing the stock is fairly valued based on Tuesday’s price-to-GF Value ratio of 1.09.
GuruFocus ranks the Houston-based company’s financial strength 4 out of 10 on the back of a weak Altman Z-score of 0.06 despite cash-to-debt and debt-to-equity ratios outperforming more than 60% of global competitors.
