Despite the crude slump and the bearish outlook, there has recently been some insider buying in the energy industry. Is it a Positive Indicator? With corporate insiders – executives, directors, or others associated with running the company – expected to possess a deeper understanding of the business fundamentals than anybody else, it surely is an indicator on which investors can rely. Clearly insiders see their company’s shares as a good investment, which would be able to weather the storm and be just fine. Moreover, with a number of energy firms trading at or close to their 52-week lows, insiders believe that the stock prices are really cheap and therefore a good bargain. 4 Energy Companies Witnessing Healthy Insider Buying Let’s check a few such companies that reported massive insider buying over the past few days. Anadarko Petroleum Corp. APC: As Woodlands, TX-based oil and gas finder Anadarko Petroleum continued to drop to new lows, Peter J. Fluor – a Director – took advantage of the price dip to buy 25,000 shares last week. At $41.19 apiece, the consideration turns out to be around $1.03 million. The Zacks Rank #3 (Hold) company’s shares were trading on Tuesday’s close at $37.33. That is down from $77 this time last year. Devon Energy Corp. DVN: This independent energy explorer had Director Barbara M. Baumann buying stock last week. She bought 8,200 shares of the company – holding a Zacks Rank #3 – at a price of $30.44 per share. The total for the buy came to $249,629. Devon Energy shares have dived around 56% over the past year, as the commodity downturn has taken a toll on the entire industry. Crestwood Equity Partners L.P. CEQP: 245,929 units of this midstream energy partnership have been scooped up by Director First Reserve Gp Xi. The units were added at an average price of $20.30 each, with a total consideration of almost $5 million. Carrying a Zacks Rank #2 (Buy), Crestwood had a rough 2015 on the stock markets and is down 75% in the past 12 months. Enterprise Products Partners L.P. EPD: One of the biggest energy-related partnerships, it has not been spared the horrors of crude meltdown either as units are down 30% over the past year. The Houston-based Zacks Rank #3 firm saw a Director purchase 3.8 million units at $26.11 each, totaling about $100 million. Bottom Line Despite having a strong correlation with positive share movement, insider buying is not a guarantee for bullish stock performance. Nevertheless, it can be a strong endorsement of confidence in the future of the company that is currently undervalued or about to rebound. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ENTERPRISE PROD (EPD): Free Stock Analysis Report DEVON ENERGY (DVN): Free Stock Analysis Report ANADARKO PETROL (APC): Free Stock Analysis Report CRESTWOOD EQTY (CEQP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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