Insiders Are Buying These 2 Energy Concerns

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 |  Includes: DRC, MUR
by: Bret Jensen

As an investor might imagine after a 25% rally in 2013, insider selling is picking up and currently vastly outnumbers insider buying. This makes those rare stocks still seeing insider buying well worth investigating for possible investment. Here are two energy concerns that have seen significant recent insider buying.

Dresser-Rand Group (NYSE:DRC) designs and manufactures engineered rotating equipment solutions to the oil, gas, chemical, petrochemical, and other industries worldwide. An insider just made an impressive over $3mm purchase last week. It was the first insider buy of stock since March of this year.

The company has been rumored in the past to be a takeout target for General Electric (NYSE:GE) as the industrial behemoth expands into the oil & gas services business. The stock has underperformed the market this year despite seeing earnings rise some 40% Y/Y and also posting better than 20% revenue gains as well.

The stock has a five year projected PEG of under 1 (.78). The fourteen analysts that cover the stock have a $65.50 a share price target on DRC, ~$9 a share over the current price.

Murphy Oil Corporation (NYSE:MUR) is involved in the exploration and production of oil and gas properties worldwide. It is also engaged in oil and gas refining and marketing activities. The company explores for and produces crude oil, natural gas, and natural gas liquids. An insider purchased over $1.2m of stock two weeks ago. It was the first insider buy since May.

The company has been focusing on shareholder value in 2013. It spun off its retailing arm, Murphy USA (NYSE:MUSA), in September. It is also trying to sell a 130,000 barrel/day refinery it owns and operates in the U.K.

Murphy is seeing results from its efforts to raise production and become a purer E & P play. In its last reported quarter, total energy production grew 14% Y/Y. More impressively, oil production grew more than 30% Y/Y. The shares are not expensive at 10x forward earnings and also pay a 1.9% dividend as well.

Disclosure: I am long GE. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.