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 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

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!