Very Significant Insider Buying in Murphy Oil Corporation (MUR)

P/E Fwd P/E PT (% upside potential) Div. Yield
MUR 12.39 9.45 $65.45 (+7.3%) 2.04%
CVX 8.63 9.24 $123.90 (+7.7%) 3.13%
COP 9.65 9.20 $63.65 (+11.63%) 4.63%
MRO 13.58 10.70 $39 (+12.52%) 1.96%

Bottom Line

On paper, Murphy Oil is attractive, but not more so than some of its competitors — compared to big oil, the stock has only average valuations, low-to-average dividend yield, neutral to mildly bullish analyst reports. However, when the company’s director, who has a unique view into the business, uses almost $5 million of his hard-earned cash to buy his company’s stock in the open market, it is wise for investors to take notice.

Common sense dictates that the only reason an insider would invest such a high amount of money in his own company is that he expects to make money. While currently Murphy Oil does not look like an extraordinary bargain, Mr. Deming’s actions seem to signal that positive surprises might be in the offing. It is now up to investors to decide whether to follow suit and buy some of Murphy Oil shares now, or wait for future developments in order have a clearer picture.

The article Very Significant Insider Buying in this Oil Company originally appeared on Fool.com and is written by Alex Bastardas.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.