The energy sector is one investors may have foregone a while ago. There’s really not a lot to like about the “dirty” energy sector. Renewable options have received a lot of love from investors, but companies like Cenovus Energy Inc. (TSX:CVE) have widely been pushed aside by the broader stock market.
That said, insiders have shown their love for Cenovus in recent months. Since Q4 of last year, insiders have bought more than $700,000 of this stock with their own cash. The company’s deal to merge with Husky Energy has apparently provided the impetus for these investments.
Insiders appear to like the long-term ability of Cenovus to compete in the energy sector as the industry’s third largest player in Canada. I think we could be seeing the beginning of another bull market in commodities take hold, so investors bullish on a recovery in energy prices ought to consider stocks like Cenovus with a tremendous amount of insider buying support today.
As always, please remember to consult with a certified financial advisor into your own homework before making investing decisions. Insider buying and selling activity is not necessarily indicative of the future performance of a given company’s stock price, and insiders regularly buy or sell positions in companies they own or manage for reasons other than expectations of future stock price performance.
Analyzing insider transactions in a given stock is one tool of many to gain pertinent information to assist in investment decision making.
Invest wisely, my friends.