Corporate insiders sometimes trade based on the material non-public information they have. Other times they have an edge because they know their companies and industries much better than almost all other investors. We believe that by imitating the investments of corporate insiders, investors are more likely to beat the market in the long term.
Below we compiled a list of energy stocks that insiders are bullish about recently. All companies have at least $5 billion market cap and were purchased by at least two insiders over the past three months. The market data is sourced from Finviz and the sector classification is from Fidelity.
Company Name | Symbol | Insiders | YTD Return |
CHESAPEAKE ENERGY CORP | 6 | 9.03% | |
EQT CORP | 3 | 41.60% | |
APACHE CORP | 3 | -17.07% | |
CONTINENTAL RESOURCES | 2 | 3.25% | |
LINN ENERGY LLC | 3 | 5.63% | |
ALPHA NATURAL RES | 2 | -60.14% | |
ENERGY TRANSFER EQUITY | 2 | -1.36% | |
HESS CORP | 2 | -20.68% | |
HOLLYFRONTIER CORP | 2 | 56.10% | |
KINDER MORGAN INC. | 2 | -7.27% | |
KINDER MORGAN MAN
| 2 | -2.44% | |
WHITING PETROLEUM | 2 | -18.09% |
Chesapeake Energy Corp (CHK): Chesapeake is a producer of natural gas and oil and natural gas liquids in the United States. Chesapeake was purchased by six insiders over the past three months and returned 9.03% since the beginning of this year. The most recent purchase occurred at the end of September. VP and CFO at Chesapeake, Domenic Dell’osso, bought 5,000 shares at $25.5597. In early August, five directors of the company, Merrill Miller, Donald Nickles, Aubrey Mcclendon, Louis Simpson, and Burns Hargis bought over 100,000 shares in total at prices ranging from $27.46 to $32.88. Now Chesapeake is trading at $29.03. It has a market cap of $18.5B and a P/E ratio of 25.23. Mason Hawkins had $2.6 billion invested in Chesapeake stocks.
EQT Corp (EQT): EQT is a natural gas company. EQT was purchased by three insiders over the past three months and returned 41.60% since the beginning of this year. On October 3, James Rohr, Philip Behrman, and Bray Cary bought 788 shares in total at around $53 per share. They also purchased EQT earlier this year. Now EQT is trading at $63.84. It has a market cap of $9.3B and a P/E ratio of 20.29. Michael Kaufman had $60 million of EQT shares.
Apache Corp (APA): Apache is an independent energy company. Apache was purchased by three insiders over the past three months and lost 17.07% since the beginning of this year. William Montgomery bought 2,000 shares at $90 on October 19. Montgomery also purchased 4,000 shares on September 28 at $85.38. Jon Jeppesen and Chansoo Joung both bought 5,000 shares in October. Joung purchased at $90 and Jeppesen purchased at $81.08 per share. Now APA’s price is over $100. It has a market cap of $40.3B and a P/E ratio of 9.92. Jean-Marie Eveillard’s First Eagle Investment Management, Ric Dillon’s Diamond Hill Capital, Boykin Curry’s Eagle Capital Management and many other hedge funds tracked by Insider Monkey had Apache in their portfolio.
Continental Resources Inc (CLR): Continental Resources is an independent crude oil and natural gas exploration and production company. Continental was purchased by two insiders over the past three months and returned 3.25% since the beginning of this year. John Mcnabb and Mark Monroe purchased 3,000 shares in total on August 8. Their purchase prices were $51.86 and $49.99 respectively. Currently Continental is priced at $65.06. It has a market cap of $11.0B and a P/E ratio of 124. Jeffery Vinik had nearly $50 million of Continental stocks.
Linn Energy Llc (LINE): Linn Energy is an independent oil and natural gas company. Linn was purchased by three insiders over the past three months and returned 5.63% since the beginning of this year. Terrence Jacobs, director at Linn, bought 15,000 shares on August 8 at about $32.76. Jacobs bought another 15,000 shares on August 5 for $34 per share. Together with Jacobs, Mark Ellis bought 5,000 shares at $32.76 on August 5 and Arden Walker bought 4,000 shares on August 8 at around $32 per share. Linn is currently trading at $37.13 and it has a market cap of $6.5B.
Hess Corp (HES): Hess Corporation is a global integrated energy company. Hess was purchased by two insiders over the past three months and lost 20.68% since the beginning of this year. John Hess bought 174,950 shares at $57.17 on September 12. Prior to that, John Mullin, another director at Hess, bought 10,000 shares at $54.87 on August 9. Now Hess is trading at $62.91. It has a market cap of $20.5B and a P/E ratio of 10.85. Steven Cohen invested nearly $100 million in Hess.
Kinder Morgan Inc (KMI): Kinder Morgan is one of the largest pipeline transportation and energy storage companies in North America. Kinder Morgan was purchased by two insiders over the past three months and lost 7.27% since the beginning of this year. James Street, VP of HR & Administration at Kinder Morgan, bought over 2,000 shares at about $26 on August 16. Street also purchased 2,500 shares at $28.47 in May this year. Chairman and CEO of the company, Richard Kinder, bought about 50,000 shares at around $27 per share on August 3. Now Kinder Morgan’s price is $28.17. It has a market cap of $19.8B and a P/E ratio of 55.02.
Disclosure: I am long CHK.
