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Pick Up This Cheap Energy Stock Even Lower Than EVP, GC & Corp. Sec. Copeland Did

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 December 8, SM Energy Co.'s EVP, GC & Corp. Sec., David W. Copeland, invested $230,417.00 into 10,000 shares of SM, for a cost per share of $23.04. 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 Tuesday, bargain hunters could buy shares of SM Energy Co. (Symbol: SM) and achieve a cost basis 2.4% cheaper than Copeland, with shares changing hands as low as $22.50 per share. SM Energy Co. shares are currently trading up about 6.1% on the day. The chart below shows the one year performance of SM shares, versus its 200 day moving average:

SM Energy Co. Chart

Looking at the chart above, SM's low point in its 52 week range is $18.21 per share, with $60.28 as the 52 week high point - that compares with a last trade of $23.21. By comparison, below is a table showing the prices at which SM insider buying was recorded over the last six months:

Purchased Insider Title Shares Price/Share Value
12/08/2015 David W. Copeland EVP, GC & Corp. Sec. 10,000 $23.04 $230,417.00

According to the ETF Finder at ETF Channel, SM makes up 3.22% of the EGShares Dow Jones Emerging Markets Consumer Titans 30 ETF (Symbol: ECON) which is trading higher by about 1.5% on the day Tuesday.

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.

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