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Summary

  • 5 insiders sold Cimarex Energy stock within one month.
  • The stock was not purchased by any insiders in the month of intensive selling.
  • 2 of these 5 insiders decreased their holdings by more than 10%.

Cimarex Energy (NYSE:XEC) operates as an independent oil and gas exploration and production company primarily in Texas, Oklahoma, and New Mexico.

(click to enlarge)

Insider selling during the last 30 days

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

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Paul KorusCFOJune 134,516No129,712
shares
3.4%
Jerry BoxDirectorJune 121,922No11,960
shares
13.8%
Joseph AlbiCOOMay 30-June 1210,000No150,756 shares6.2%
Michael SullivanDirectorJune 61,500No17,128 shares8.1%
Stephen BellEVPMay 2817,601No118,726 shares12.9%

There have been 35,539 shares sold by insiders during the last 30 days.

Insider selling by calendar month

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

MonthInsider selling / sharesInsider buying / shares
June 201414,9380
May 201431,4180
April 201400
March 201448,5650
February 201483,0000
January 201416,6000
December 20134,9760
November 20134,3590
October 20132,5000
September 201334,0010
August 201334,5950
July 20133,8230
June 201300
May 20132,5000
April 201300
March 201374,4000
February 20133,2000
January 201313,1010

There have been 371,976 shares sold and there have been zero shares purchased by insiders since January 2013.

Financials

Cimarex Energy reported the first-quarter financial results on May 6 with the following highlights:

Revenue$599.2 million
Net income$138.5 million
Cash$4.5 million
Debt$1.0 billion

The five insiders sold their shares after these results.

(click to enlarge)

(Source: Investor presentation)

Outlook

Cimarex Energy's production guidance is as follows:

Q2/2014810-830 Mmcfe/d
FY2014822-847 Mmcfe/d

(Source: Investor presentation)

Competition

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

CompanyXECNFXCOGCHK
Market Cap:11.95B5.64B14.11B19.64B
Employees:9081,54868410,800
Qtrly Rev Growth (yoy):0.410.500.370.47
Revenue:2.17B1.97B1.88B19.13B
Gross Margin:0.800.740.770.33
EBITDA:1.49B1.08B1.29B5.84B
Operating Margin:0.380.210.340.15
Net Income:601.23M137.00M343.98M833.00M
EPS:7.033.080.821.27
P/E:19.5313.7541.2323.80
PEG (5 yr expected):1.484.710.560.42
P/S:5.702.957.771.06

Cimarex Energy has the second-highest P/S ratio among these four companies.

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

CompanyInsider buying / sharesInsider selling / shares
NFX0169,752
COG030,000
CHK75,25032,500

Newfield Exploration has also seen intensive insider selling during the last 30 days.

Conclusion

There have been five different insiders selling Cimarex Energy and there have not been any insiders buying Cimarex Energy during the last 30 days. Two of these five insiders decreased their holdings by more than 10%. Cimarex Energy has an insider ownership of 6.15%.

Before going short Cimarex Energy, I would like to get a bearish confirmation from the Point & Figure chart. The main reason for the proposed short entry is the intensive insider-selling activity.

Source: Cimarex Energy: 5 Different Insiders Have Sold Shares During The Last 30 Days