Newfield Exploration Company (NYSE:NFX) is engaged in the exploration, development, and production of crude oil, natural gas, and natural gas liquids.
Insider selling during the last 30 days
Here is a table of Newfield's insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|Terry Rathert||EVP||June 18||12,500||No||126,388
|Daryll Howard||VP||June 12||15,000||No||68,136 shares + 5,200 options||17.0%|
|John Jasek||VP||May 28||10,000||No||37,993
shares + 25,000 options
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.
|Month||Insider selling / shares||Insider buying / shares|
There have been 224,177 shares sold and there have been 2,053 shares purchased by insiders since January 2013.
Newfield reported the first-quarter financial results on April 29 with the following highlights:
|Net income||$284 million|
The three insiders sold their shares after these results.
(Source: Earnings presentation)
Newfield's second-quarter guidance is as follows:
|Oil production||4.0-4.2 MMBO|
|NGLs production||1.7-1.9 MMBbls|
|Natural gas production||30.0-31.0 BCF|
(Source: Investor presentation)
|Qtrly Rev Growth (yoy):||0.50||0.37||0.41||0.47|
|PEG (5 yr expected):||4.82||0.57||1.52||0.43|
Newfield has the highest PEG ratio among these four companies.
Here is a table of these competitors' insider activities this year.
|Company||Insider buying / shares||Insider selling / shares|
Cimarex Energy has also seen intensive insider selling during the last 30 days.
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.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.