10 Energy Stocks with Insider Buying
In this piece, we will take a look at ten energy stocks with insider buying. If you want to skip our introduction to the energy industry, then head on over to 5 Energy Stocks with Insider Buying.
The energy sector has shaped up to be one of the most dynamic in the world over these past couple of years. The onset of the coronavirus pandemic dealt a massive shock to energy firms as global demand for fossil fuels and other products dropped due to reduced demand for industrial manufacturing, office work, and traveling.
Then, as economies were starting to stabilize in 2022, the Russian invasion of Ukraine created uncertainty about the global supply of oil, leading to heavy speculation and record high gasoline prices in several countries - particularly those that rely on imported fuel for their refining needs. In 2023, the sector is coming down from the 2022 highs, and energy firms continue to report a drop in annual profits as prices stabilize.
Its criticality to the global economy and growth also makes the energy industry one of the largest in the world. Estimates suggest that it was worth $6 trillion in the U.S. alone, and employed roughly 6.8 million people in 2022. America is the world's largest oil producing nation as it was one of the first in the world to master the oil and gas extraction technology known as fracturing. Commonly dubbed as 'fracking' this involves injecting high pressure fluids into the Earth's surface to fracture the bedrock and then see if a well can be dug to extract crude oil and gas.
Despite the recent push towards renewable energy, most of the world's energy needs are still met by conventional fuels. Data shows that these accounted for 85% of global usage in 2022, which is quite higher than what environmental activists would prefer. However, over the long term, global oil demand is expected to taper off and then start falling according to estimates from McKinsey. The consulting and research firm believes that by 2050, global oil demand can be as much as 50% lower, aided particularly by the growing use of electric vehicles. On a side note, we've also noted down some of the top electric vehicle stocks that analysts strongly recommend, out of which the notable picks are Electrameccanica Vehicles Corp. (NASDAQ:SOLO), Li Auto Inc. (NASDAQ:LI), and Niu Technologies (NASDAQ:NIU).
The rise in the fortunes of energy companies in 2022 has come with an equally sharp reckoning in 2023. Some of the worst performing energy stocks in 2023 are Recon Technology, Ltd. (NASDAQ:RCON), Enservco Corporation (NYSE:ENSV), and Trio Petroleum Corp. (NYSE:TPET), and a look at the complete list made up of 15 companies shows that most of these are backend oil equipment companies operating in America which have suffered as U.S. oil production also cools down in 2023.
A shift in global energy usage to renewable energy is being spearheaded by developing countries especially since electric vehicles have moved from the realm of science fiction to reality. Tesla, Inc. (NASDAQ:TSLA)'s electric vehicles are now common across streets in the world, and when it comes to America, the U.S. government under President Biden passed a sweeping set of legislation under the Inflation Reduction Act (IRA) that not only requires electric vehicles eligible for a subsidy to be manufactured inside the U.S. but also lays down a whopping $370 billion in total incentives for the green energy sector. Learning about this might make you interested in some of the best alternative energy stocks you can lay your hands on, and our research shows that a couple of top names are NextEra Energy, Inc. (NYSE:NEE), Enphase Energy, Inc. (NASDAQ:ENPH), and First Solar, Inc. (NASDAQ:FSLR).
Trading on the stock market comes with its set of limitations. One such restriction, which is crucial to the open, transparent, and fair functioning of markets is a ban against trading shares based on inside information. So, for instance you might have a friend working at Apple Inc. (NASDAQ:AAPL) who tells you that the firm has cracked the code for super computing and will unveil a microprocessor the next week capable of supporting the technology. If you buy shares based on this information and sell them after the announcement to profit, the SEC will fine you or even send you to jail depending on the nature of the offense.
However, this does not mean that one cannot read the tea leaves to see what a firm's insiders might be up to. After all, trading shares based on public knowledge is fair game, and actions sometimes do speak louder than words. For publicly traded firms. any shares that their board members, shareholders, directors, or even the chief executive officer (CEO) might have purchased are reported to the SEC and are listed in the public record. These transactions can often be used to gauge whether insiders at a firm know something the outside investor does not in an attempt to peer into the crystal ball of the SEC's Electronic Data Gathering, Analysis, and Retrieval (EDGAR) filing system.
Today we've tried to do this and made a list of ten energy stocks with insider buying. Some top firms on the list are CrossAmerica Partners LP (NYSE:CAPL), Epsilon Energy Ltd. (NASDAQ:EPSN), and HighPeak Energy, Inc. (NASDAQ:HPK). It is public information that oil prices recently declined to $70 and this pushed down the prices of energy companies. The insiders of the following companies think this is a buying opportunity.
Our Methodology
To compile our list of energy stocks with insider buying, we used Insider Monkey’s insider trading screener to screen for shares that have seen significant insider buying. The firms are ranked according to the percentage change in insider ownership over the past six months.
10 Energy Stocks with Insider Buying
10. Mexco Energy Corporation (NYSE:MXC)
6-Month Insider Ownership Change: 12.33%
Mexco Energy Corporation (NYSE:MXC) is an American oil and gas company with production and other interests in several states. Insider stock purchases picked up the pace in March when its director Thomas Decker bought more than $20,000 worth of shares in a company whose market capitalization is roughly $28 million.
By the end of this year's first quarter, only one hedge fund out of the 943 that were part of Insider Monkey's database had bought and invested in Mexco Energy Corporation (NYSE:MXC)'s stock. This lone investor is Jim Simons' Renaissance Technologies with a $130,000 stake.
Just like Epsilon Energy Ltd. (NASDAQ:EPSN), CrossAmerica Partners LP (NYSE:CAPL), and HighPeak Energy, Inc. (NASDAQ:HPK), Mexco Energy Corporation (NYSE:MXC) is an energy stock with high insider buying.
9. Exxon Mobil Corporation (NYSE:XOM)
6-Month Insider Ownership Change: 19.36%
Exxon Mobil Corporation (NYSE:XOM) is one of the largest oil companies in the world. Insider purchases of its stock picked up in July with one of the largest purchases seeing board member Jeffrey Ubben buying $21.4 million worth of shares during the month.
As of March 2023, 73 of the 943 hedge funds surveyed by Insider Monkey had invested in the firm. Exxon Mobil Corporation (NYSE:XOM)'s largest shareholder is Rajiv Jain's GQG Partners with an investment of $2.1 billion.
8. Plains GP Holdings, L.P. (NASDAQ:PAGP)
6-Month Insider Ownership Change: 24.40%
Plains GP Holdings, L.P. (NASDAQ:PAGP) is a midstream oil company that operates storage and transportation assets. While there has only been one insider purchase as of late, it was a big one and saw a director buy nearly a million dollars worth of shares in May.
During 2023's first quarter, 16 of the 943 hedge funds polled by Insider Monkey had bought Plains GP Holdings, L.P. (NASDAQ:PAGP)'s shares. John Overdeck and David Siegel's Two Sigma Advisors is the largest shareholder courtesy of a $43.8 million stake.
7. Gran Tierra Energy Inc. (NYSE:GTE)
6-Month Insider Ownership Change: 62.47%
Gran Tierra Energy Inc. (NYSE:GTE) is a Canadian firm that has oil and gas production operations in South America. The largest insider purchase as of late was by none other than its CEO, who bought $129,000 worth of shares in March.
Insider Monkey dug through 943 hedge funds for their March quarter of 2023 investments to find out that ten had held a stake in the energy company. Gran Tierra Energy Inc. (NYSE:GTE)'s biggest investor in our database is Thomas E. Claugus' GMT Capital through a $21.3 million investment.
6. Dorchester Minerals, L.P. (NASDAQ:DMLP)
6-Month Insider Ownership Change: 64.10%
Dorchester Minerals, L.P. (NASDAQ:DMLP) owns interests in oil producing areas in more than two dozen U.S. states. The firm's second quarter earnings report saw it report $19.8 million in net income for a considerable drop over the year ago figures of $37.3 million - indicating a slowdown in U.S. oil production. This hasn't stopped insiders from buying its stock though. The purchases started in March and continued until mid June. Out of these, one large chunk of shares was cumulatively worth $145,519 and the price range of the insider transactions ranged from $28 in March to a high of $31 at the start of the same month.
Insider Monkey's Q1 2023 survey of 943 hedge funds revealed that three had invested in Dorchester Minerals, L.P. (NASDAQ:DMLP). Out of these, the firm's largest shareholder is Murray Stahl's Horizon Asset Management since it owns one million shares that are worth $30.7 million.
CrossAmerica Partners LP (NYSE:CAPL), Dorchester Minerals, L.P. (NASDAQ:DMLP), Epsilon Energy Ltd. (NASDAQ:EPSN), and HighPeak Energy, Inc. (NASDAQ:HPK) are some energy stocks with high insider buying.
Click to continue reading and see 5 Energy Stocks with Insider Buying.
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Disclosure: None. 10 Energy Stocks with Insider Buying is originally published on Insider Monkey.
