Insider Buying

Insider Buyings Further Rally Energy Stocks

The logos of five Energy Companies are displayed in white circles atop a blue background with a grid effect

Russia’s attack on Ukraine, commencing from February 24, 2022, sent the world spinning on its axis in all areas of life. Unsurprisingly, a plethora of sanctions were placed on Russia which further impacted the economy. The Russian stock market was divulged to remain bolted until March 18, and the country’s oil exports have been banned by multiple other countries.

This turn of events of course inversely affected energy stocks in the market. Since March 8, 2022, when US President Joe Biden first reported the ban on Russian Oil, energy stocks have accelerated. Some energy stocks, which are especially popular among investors have also seen insider buying in early 2022. 

Energy Market Celebrities 

A bullish future is in talks for the following companies. The cherry on top is that all have seen insiders buying stocks at peak times, according to 2iQ’s data.

  • Sunnova Energy Intl. Inc. (NOVA: US)
    10,000 shares of this American stock were purchased by Sunnova Director, Mohamed Akbar, on March 3, 2022, at a value of $19.09 per share. On March 9, 2022, $NOVA reached its highest closing price of the year: $24.64. This signifies a rise of almost 29.07%.

Insider Buying and Selling Chart - Sunnova Energy Intl. Inc. (NOVA: US)

  • Nexgen Energy Ltd. (NXE: CN)
    Bradley John Wall, a member of the company’s B.O.D., bought a total of 8,000 shares in two trades dated January 14 & 25, 2022. At the time of the transactions, the stock was priced CAD 5.6 and CAD 4.99 respectively. On March 9, the stock closed at CAD 7.34, marking a rise of ~ 31.1% since Wall’s first buying this year. 

  • EDP - Energias de Portugal SA (EDP: PL)
    From February 18 to 24, 2022, three insiders at the company purchased $EDP. Fernando Herrero (SVB member), Rui Manuel Teixeira (Exec. Board), and Miguel Andrade (CEO) bought a total of 315,610 shares. Compared to $EDP’s closing price on February 18, 2022, the value has increased by 9.24%.

  • Hanwha Solutions Corp. (009830: KS)
    In the company’s first insider buying in 2022, Vice-President, Park Seung Deok bought 2,500 shares on February 7, 2022. Rising by almost 10.04%, the stock closed at $36,700; its peak closing price for 2022, on March 2.

  • Continental Resources Inc. (CLR: US)
    In the company’s first Insider buying in 2022, Chairman at Continental, Harold Glenn Hamm, bought 336,844 $CLR shares on March 7 & 8, worth a total of roughly $20 million. $CLR was worth $46.0 at the beginning of 2022, and since then, has surged by 23.57%.

Roller Coaster Ride

According to the S&P 500 Index, Energy stocks have had the most bullish year so far compared to other sectors. Even in less than three months, American energy stocks have soared by almost 40%. 

But the tide hasn’t been entirely bullish for all energy and oil stocks. On February 28, 2022, BP Plc. (BP/:LN) announced that it would be withdrawing its 19.75% stake in Rosneft Oil Company (ROSN: RM). Since the statement, $BP has dived by 4.62%. Compared to its closing price at the start of 2022, $ROSN has sunk by 57.14% until March 2, when the Russian market closed. 

According to a 2020 report, Russia is the second-biggest exporter and accounted for 11% of the world’s crude oil exports. While the United States imports only 3% to 8% crude oil from Russia, there shouldn’t be much adverse effect on either side for the oil ban. On the other hand, if Europe succeeds America in the sanction process, Russia’s economy would suffer substantially.

As a result, this has turned investors’ attention to more renewable energy companies. Coupled with insiders buying at the opportune times and price fluctuations, the energy market has already singled out its place as this year’s most eyed sector

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