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 February 28, Parsley Energy Inc's Director, Ron Brokmeyer, invested $51,320.00 into 2,000 shares of PE, for a cost per share of $25.66. 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 Monday, bargain hunters could buy shares of Parsley Energy Inc (Symbol: PE) and achieve a cost basis 1.5% cheaper than Brokmeyer, with shares changing hands as low as $25.28 per share. Parsley Energy Inc shares are currently trading up about 1.5% on the day. The chart below shows the one year performance of PE shares, versus its 200 day moving average:
Looking at the chart above, PE's low point in its 52 week range is $21.1207 per share, with $33.07 as the 52 week high point - that compares with a last trade of $26.04. By comparison, below is a table showing the prices at which PE insider buying was recorded over the last six months:
PE makes up 2.10% of the PowerShares DWA Energy Momentum Portfolio ETF (Symbol: PXI)
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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
