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Summary

  • 3 insiders sold Newfield stock within one month.
  • The stock was not purchased by any insiders in the month of intensive selling.
  • 2 of these 3 insiders decreased their holdings by more than 10%.

Newfield Exploration Company (NYSE:NFX) is engaged in the exploration, development, and production of crude oil, natural gas, and natural gas liquids.

(click to enlarge)

Insider selling during the last 30 days

Here is a table of Newfield's insider activity during the last 30 days.

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Terry RathertEVPJune 1812,500No126,388
shares
9.0%
Daryll HowardVPJune 1215,000No68,136 shares + 5,200 options17.0%
John JasekVPMay 2810,000No37,993
shares + 25,000 options
13.7%

There have been 37,500 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of Newfield's insider activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
June 201427,5000
May 201446,6460
April 201400
March 201470,6060
February 201415,0000
January 201400
December 201312,4550
November 201300
October 201300
September 201300
August 201300
July 201300
June 201300
May 201330,1032,053
April 201300
March 20135,0000
February 201316,8670
January 201300

There have been 224,177 shares sold and there have been 2,053 shares purchased by insiders since January 2013.

Financials

Newfield reported the first-quarter financial results on April 29 with the following highlights:

Revenue$553 million
Net income$284 million
Cash$107 million
Debt$3.0 billion

The three insiders sold their shares after these results.

(click to enlarge)

(Source: Earnings presentation)

Outlook

Newfield's second-quarter guidance is as follows:

Oil production4.0-4.2 MMBO
NGLs production1.7-1.9 MMBbls
Natural gas production30.0-31.0 BCF

(click to enlarge)

(Source: Investor presentation)

Competition

Newfield's competitors include Cabot Oil & Gas (NYSE:COG), Cimarex Energy (NYSE:XEC), and Chesapeake Energy (NYSE:CHK). Here is a table comparing these companies.

CompanyNFXCOGXECCHK
Market Cap:5.85B14.67B12.46B20.27B
Employees:1,54868490810,800
Qtrly Rev Growth (yoy):0.500.370.410.47
Revenue:1.97B1.88B2.17B19.13B
Gross Margin:0.740.770.800.33
EBITDA:1.08B1.29B1.49B5.84B
Operating Margin:0.210.340.380.15
Net Income:137.00M343.98M601.23M833.00M
EPS:3.080.827.031.27
P/E:14.2642.8820.3724.56
PEG (5 yr expected):4.820.571.520.43
P/S:2.927.705.671.05

Newfield has the highest PEG ratio among these four companies.

Here is a table of these competitors' insider activities this year.

CompanyInsider buying / sharesInsider selling / shares
COG030,000
XEC0194,521
CHK75,25032,500

Cimarex Energy has also seen intensive insider selling during the last 30 days.

Conclusion

There have been three different insiders selling Newfield and there have not been any insiders buying Newfield during the last 30 days. Two of these three insiders decreased their holdings by more than 10%. Newfield has an insider ownership of 6.10%.

Before going short Newfield, I would like to get a bearish confirmation from the Point & Figure chart. The two main reasons for the proposed short entry are a relatively high PEG ratio, and the intensive insider-selling activity.

Source: Newfield Exploration: 3 Different Insiders Have Sold Shares During The Last 30 Days