In this article, we discuss 5 oil stocks that insiders and executives are selling. If you want our detailed analysis of these stocks, go directly to Insiders and Executives are Selling These 10 Oil Stocks.
5. Hess Corporation (NYSE:HES)
Number of Hedge Fund Holders: 36
Hess Corporation (NYSE:HES) was incorporated in 1920 and is headquartered in New York, operating as an exploration and production company that sells crude oil, natural gas liquids, and natural gas.
According to Insider Monkey’s data, insiders at Hess Corporation (NYSE:HES) sold about 1.25 million shares of the company from March 1 to March 11. The leading insider involved in these trades was John Barnett Hess, the CEO of Hess Corporation (NYSE:HES), with transactions priced between $99 to $101 per share.
On March 1, Hess Corporation (NYSE:HES) declared a $0.375 per share quarterly dividend, a 50% increase from its earlier dividend of $0.25. The dividend is payable on March 30, for shareholders of record on March 14.
Hess Corporation (NYSE:HES) posted its fourth quarter results on January 26, reporting earnings per share of $0.85, above market consensus by $0.12. Revenue over the period jumped 59.14% year-on-year to $2.26 billion, topping estimates by $323.50 million.
Among the hedge funds tracked by Insider Monkey in Q4 2021, 36 funds held long positions in Hess Corporation (NYSE:HES), up from 27 funds in the previous quarter. Fisher Asset Management held the biggest stake in the company, owning close to 4 million shares worth $294 million.
4. Marathon Oil Corporation (NYSE:MRO)
Number of Hedge Fund Holders: 40
Marathon Oil Corporation (NYSE:MRO) was founded in 1887 and is headquartered in Houston, Texas, engaging in the exploration and production of crude oil and condensate, natural gas liquids, and natural gas.
In a regulatory filing, Marathon Oil Corporation (NYSE:MRO) chairman, president, and CEO Lee Tillman disclosed the sale of 54,151 common shares of the company on March 2 at a price of $23.109 per share. Overall, Marathon Oil Corporation (NYSE:MRO) insiders sold 496,943 shares as of March 11, and the most notable sellers were Lee Tillman, Dane Whitehead, executive vice president and CFO, and Pat Wagner, executive vice president of corporate development and strategy.
On March 2, Benchmark analyst Subash Chandra downgraded Marathon Oil Corporation (NYSE:MRO) to Hold from Buy, removing his prior price target of $19, citing that valuations are “not extreme in context of current oil prices”, but the analyst prefers to focus on companies that are still reflecting oil prices at less than $75 per barrel.
In Q4 2021, 40 hedge funds were bullish on Marathon Oil Corporation (NYSE:MRO) according to the database of Insider Monkey, with combined stakes of $969 million. Brandon Haley’s Holocene Advisors is the largest shareholder of the company, with 9.3 million shares worth approximately $154 million.
3. Halliburton Company (NYSE:HAL)
Number of Hedge Fund Holders: 43
Halliburton Company (NYSE:HAL) operates in the energy sector as an oil field service company. According to Insider Monkey’s data, 194,700 Halliburton Company (NYSE:HAL) shares were sold off by insiders from March 1 to March 11, and the prominent sellers were the company’s executive vice president and CFO, as well as the presidents of the Eastern and Western Hemisphere, namely Lance Loeffler, Joe Rainey, and Mark Richard.
On January 24, Halliburton Company (NYSE:HAL) reported its Q4 results, posting earnings per share of $0.36, surpassing estimates by $0.02. The $4.28 billion revenue gained 32.13% year-over-year, topping market consensus by $191.50 million.
RBC Capital analyst Keith Mackey on January 25 raised the price target on Halliburton Company (NYSE:HAL) to $34 from $32 and kept an Outperform rating on the shares. The company’s Q4 results exceeded expectations on most key metrics, and Halliburton Company (NYSE:HAL) increased its dividend earlier than expected, which suggests the management’s confidence in expanding its margins while controlling capital expenditure, the analyst told investors in a bullish thesis.
A total of 43 hedge funds held long positions in Halliburton Company (NYSE:HAL) at the end of December 2021, up from 29 funds in the quarter prior. Pzena Investment Management is the biggest shareholder of the company, with 38.6 million shares worth $883.35 million.
2. Pioneer Natural Resources Company (NYSE:PXD)
Number of Hedge Fund Holders: 43
Headquartered in Irving, Texas, Pioneer Natural Resources Company (NYSE:PXD) is an independent oil and gas exploration and production company in the United States, selling oil, natural gas liquids, and gas.
In a regulatory filing, Pioneer Natural Resources Company (NYSE:PXD) CEO Scott Sheffield disclosed the sale of 22,247 common shares of the company on March 3, priced at $240.121 per share. Overall, from the beginning of March till March 11, 60,502 shares have been sold off by insiders at Pioneer Natural Resources Company (NYSE:PXD). Other prominent insider executives who sold shares of the company included J.D. Hall, the vice president of operations, and Margaret M. Montemayor, vice president and chief accounting officer.
On February 23, Piper Sandler analyst Mark Lear raised the price target on Pioneer Natural Resources Company (NYSE:PXD) to $274 from $256 and kept an Overweight rating on the shares, stating that the exploration and production group is “passing the initial test on promised capital discipline” through price cycles and is broadly not accelerating activity levels in the current price environment.
In Q4 2021, 43 hedge funds were bullish on Pioneer Natural Resources Company (NYSE:PXD), compared to 48 funds in the previous quarter. Adage Capital Management is the biggest shareholder of the company, with 1.6 million shares worth $298.2 million.
Here is what ClearBridge Investments Dividend Strategy has to say about Pioneer Natural Resources Company (NYSE:PXD) in its Q3 2021 investor letter:
“Over the last year we have also added a position in Pioneer Natural Resources, a best-in-class producer in the Permian Basin. We added Pioneer as we anticipated rising commodity prices and sought more direct leverage to that trend. Our overweight to energy has benefited our performance this year, in particular through the first half of the year, and we believe the sector, still less than 3% of the S&P 500, remains underinvested and attractive going forward.”
1. Devon Energy Corporation (NYSE:DVN)
Number of Hedge Fund Holders: 51
Devon Energy Corporation (NYSE:DVN) is an Oklahoma-based company that explores and produces oil, natural gas, and natural gas liquids in the United States. Devon Energy Corporation (NYSE:DVN) is one of the favorite oil stocks on Wall Street. In Q4 2021, 51 hedge funds were long Devon Energy Corporation (NYSE:DVN), up from 48 funds in the prior quarter, with GQG Partners as the largest shareholder of the company.
From March 1 to March 11, Devon Energy Corporation (NYSE:DVN)’s insiders had sold 121,482 shares of the company, and the sellers were Tana Cashion, executive vice president of human resources and administration, Jeremy Humphers, the senior vice president and chief accounting officer, and Jeff Ritenour, the chief financial officer. Cashion sold her shares at a price of $58.41 a piece, whereas Humphers made two transactions to discard shares, priced at $59.42 and $62.40. Ritenour sold 55,000 shares on March 11, priced at $58.35 per share.
On March 2, Benchmark analyst Subash Chandra downgraded Devon Energy Corporation (NYSE:DVN) to Hold from Buy, removing his prior price target of $48, suggesting that he sees “substantially higher” total return potential in some other small-to-mid cap and natural gas names.
Here is what GoodHaven Capital Management has to say about Devon Energy Corporation (NYSE:DVN) in their Q4 2020 investor letter:
“After a rough start to the year our two biggest energy holdings – WPX Energy rebounded materially in the last six months though energy was still our biggest detractor for the year. I’ve previously written about deciding earlier this year to direct new capital towards better businesses versus adding more to the energy sector, but given the material optionality at WPX, we opted to maintain a material exposure. Recently WPX announced an all stock merger with a larger competitor – Devon Energy – which will leave the new company with plenty of cash flow at lower oil prices, less leverage, and material upside to higher commodity prices.”
You can also take a look at 10 Nuclear Energy Stocks to Buy Now and Top 10 Stocks Billionaire Seth Klarman is Selling Off.
