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

| About: Newfield Exploration (NFX)

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.

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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
shares
9.0%
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
13.7%
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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
June 2014 27,500 0
May 2014 46,646 0
April 2014 0 0
March 2014 70,606 0
February 2014 15,000 0
January 2014 0 0
December 2013 12,455 0
November 2013 0 0
October 2013 0 0
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 0 0
May 2013 30,103 2,053
April 2013 0 0
March 2013 5,000 0
February 2013 16,867 0
January 2013 0 0
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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
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The three insiders sold their shares after these results.

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(Source: Earnings presentation)

Outlook

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
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(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.

Company NFX COG XEC CHK
Market Cap: 5.85B 14.67B 12.46B 20.27B
Employees: 1,548 684 908 10,800
Qtrly Rev Growth (yoy): 0.50 0.37 0.41 0.47
Revenue: 1.97B 1.88B 2.17B 19.13B
Gross Margin: 0.74 0.77 0.80 0.33
EBITDA: 1.08B 1.29B 1.49B 5.84B
Operating Margin: 0.21 0.34 0.38 0.15
Net Income: 137.00M 343.98M 601.23M 833.00M
EPS: 3.08 0.82 7.03 1.27
P/E: 14.26 42.88 20.37 24.56
PEG (5 yr expected): 4.82 0.57 1.52 0.43
P/S: 2.92 7.70 5.67 1.05
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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
COG 0 30,000
XEC 0 194,521
CHK 75,250 32,500
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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.

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.