Very Significant Insider Buying in Murphy Oil Corporation (MUR)

Page 1 of 2

Murphy Oil Corporation (NYSE:MUR) is an oil and gas exploration and production company that also engages in retail and gasoline marketing in the US, and refining and marketing in the UK. Exploration operations are focused in the US, Canada, UK, Malaysia and the Republic of the Congo. Recently, the company has had very significant insider buying. Would it be wise to copy the insiders on this one?

Murphy Oil Corporation (NYSE:MUR)Insider Buying

After some light selling activity in late January, Director Claiborne Deming has been adding large numbers of MUR shares: On Feb. 13, Mr. Deming bought 50,000 shares of the company at an average price of $60.51/share. That’s a total value of more than $3 million. Just one day later, he bought 30,000 more shares, which, at a price of $60.07/share, had a value of more than $1.8 million. So, in only two days, Mr. Deming has bought almost $5 million of MUR stock.

Clairborne Deming is a key figure in the company. An heir to the Murphy Oil company funded in 1907 by his grandfather, he became the CEO in 1994, becoming the third-generation family member to run the company. During his years as CEO he was able to turn a struggling outfit into one of the fastest-growing oil producers in America. Today, he is the Chairman of the Board, so one can safely assume that he probably has some unique insights into Murphy Oil’s business.

Attractive Valuations

The stock currently trades at a P/E of 12.39, but future P/E is lower, at an even more attractive 9.45. Compared to its competitors, its current P/E is similar to Marathon Oil Corporation (NYSE:MRO)‘s (13.58), but higher than Chevron Corporation (NYSE:CVX)‘s (8.63) or ConocoPhillips (NYSE:COP) (9.65). With regards to forward P/E, however, Murphy’s 9.45 is on par with Chevron’s 9.24, ConocoPhillip’s 9.20, and more attractive than Marathon’s 10.70.

Analysts are mildly bullish

Most recent analyst reports are moderately bullish on the stock, and have price targets that are higher than the current stock price. Oppenheimer raised its price target from $65 to $75, and analysts at Brein Murray reiterated their buy rating and assigned a $77 price target.

Others were not as bullish, with Howard Weil cutting the price target to $61 (the same as last Friday’s closing price) and giving the stock a market perform rating, or Société Générale downgrading it from buy to hold. Current average price target is $65.45, which implies a +7.3% potential upside.

Positive Momentum

The stock is trading near its 52-week high, and +50.7% off its 52-week low. However, it is only up 3% YTD, and still far from its pre-financial crisis levels (it reached $96 in 2008), or its 2011 levels (it was trading in the low $70s). That means that, while having current positive momentum, the stock might still have plenty of room to grow.

Dividend

Murphy Oil pays a dividend of $1.25/share, which works out to a yield of 2.04%. While not a very high yield, is slightly higher than that of competitors with similar market caps like Marathon Oil (1.96%), but lower than big-names like Chevron (3.13%) or ConocoPhillips (4.63%).

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

10 Top Reasons For Getting Fired

The 3 Best States to Start an LLC

10 Jobs That Allow You to Travel

7 High-Paying Jobs You Can Do From Home

12 Best Cities to Shop in USA

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

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

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!