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Bag This Bargain Energy Stock Even Cheaper Than Director Chazen Did


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There's an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. Back on November 16, Williams Cos Inc 's Director, Stephen I. Chazen, invested $163,791.00 into 6,000 shares of WMB, for a cost per share of $27.30. Bargain hunters tend to pay particular attention to insider buys like this one, because presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money. In trading on Thursday, bargain hunters could buy shares of Williams Cos Inc (Symbol: WMB) and achieve a cost basis even cheaper than Chazen, with shares changing hands as low as $27.07 per share. It should be noted that Chazen has collected $0.64/share in dividends since the time of their purchase, so they are currently up 1.5% on their purchase from a total return basis. Williams Cos Inc shares are currently trading up about 2% on the day. The chart below shows the one year performance of WMB shares, versus its 200 day moving average:

Williams Cos Inc Chart

Looking at the chart above, WMB's low point in its 52 week range is $24 per share, with $33.67 as the 52 week high point - that compares with a last trade of $27.89. By comparison, below is a table showing the prices at which WMB insider buying was recorded over the last six months:

Purchased Insider Title Shares Price/Share Value
11/16/2017 Stephen I. Chazen Director 6,000 $27.30 $163,791.00

According to the ETF Finder at ETF Channel, WMB makes up 10.61% of the MLP and Energy Infrastructure ETF (Symbol: MLPX) which is trading up by about 0.6% on the day Thursday.

Click here to find out which 9 other energy stock bargains you can buy cheaper than insiders »

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Commodities
Referenced Symbols: WMB , MLPX



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