An Insider Bought Occidental Petroleum, Should You?

Page 1 of 2

According to a filing with the SEC, Avedick Poladian bought 5,000 shares of Occidental Petroleum Corporation (NYSE:OXY) on December 4th at an average price of $73.43 per share. Poladian, who serves as COO of real estate company Lowe Enterprises, is a member of Occidental’s Board of Directors and after his most recent purchase owns a total of 30,000 shares of the company’s stock. Insider trading filings, particularly insider purchases, can be good to track as studies show that stocks bought by insiders tend to outperform the market on average (read more about studies on insider trading).

The $61 billion market cap oil major had its sales decline very slightly in the third quarter of 2012 versus levels from Q3 2011. Slightly higher production was offset by lower prices for natural gas and natural gas liquids. The higher production also caused cost of sales and SGA expenses to come in higher, with the result being that Occidental’s net income was down 22%. Sell-side analysts don’t expect much of a rebound, but they also don’t expect the company’s business to decline much further: their consensus earnings estimate for 2013 matches Occidental’s performing on a trailing basis very closely, and so the trailing and forward P/E multiples are both 10. The market has been pricing oil majors very cheaply in general- Exxon Mobil Corporation (NYSE:XOM) and BP plc (NYSE:BP), for example, are also in that same range- and we think that the industry is a good source of value though Occidental is not necessarily the cheapest stock. Occidental Petroleum Corporation also pays a dividend yield close to 3%.

David Shaw

46 hedge funds and other notable investors owned Occidental Petroleum Corporation at the end of the third quarter of the year, which earned it a place on our list of the most popular energy stocks among hedge funds (see the full rankings). Billionaire David Shaw’s D.E. Shaw was one of the funds reporting a position in the stock, increasing its stake slightly to 2.1 million shares (check out D.E. Shaw’s stock picks). Renaissance Technologies, whose founder Jim Simons has become a billionaire thanks to the fund’s success since inception, also bought the stock and owned 1.2 million shares at the end of the quarter (find more stocks Renaissance Technologies has been buying).

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 44 percentage points in 21 months Learn how!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!