Always pay close attention to insider buying.
Especially after a rock-solid stock has been taken down too far, too fast.
Look at ConocoPhillips (COP), for example. Director R.A. Walker just bought 6,000 shares for about $627,000 just days ago. He would buy another $618,000 worth on February 22 for another round of 6,000 shares. At the moment, COP is consolidating just under $105 a share. From here, we’d like to see the stock refill its bearish gap of around $120.
Insiders have been heavy buyers of Devon Energy (DVN), too. After posting less than impressive earnings, DVN gapped from about $64 to $52.45. While it has since recovered some ground, it’s still incredibly oversold, and could refill that bearish gap. Helping, DVN President and CEO Richard E. Muncrief paid $532,800 for 10,000 shares at an average price of $53.28 a share. On Feb. 22, he would buy another 5,000 shares for $265,000 for about $53 a share.
No one knows their company better than an insider.