On September 12, 2023, OCCIDENTAL PETROLEUM CORP /DE/, a 10% owner of Western Midstream Partners LP, sold 5,100,000 shares of the company. This significant insider sell has caught the attention of investors and analysts alike, prompting a closer look at the transaction and its potential implications for the stock.
OCCIDENTAL PETROLEUM CORP /DE/ is an international oil and gas exploration and production company with operations in the United States, Middle East, and Latin America. As a 10% owner of Western Midstream Partners LP, the insider's actions can provide valuable insights into the company's financial health and future prospects.
Western Midstream Partners LP is a growth-oriented Delaware master limited partnership formed to acquire, own, develop, and operate midstream assets. With a focus on crude oil, natural gas, and natural gas liquids, the company provides a range of services to its customers, including gathering, processing, compressing, treating, and transporting products.
Over the past year, the insider has sold a total of 10,200,000 shares and has not made any purchases. This recent transaction represents a significant portion of the insider's total sales for the year, which could signal a shift in the insider's perception of the company's future prospects.
The insider transaction history for Western Midstream Partners LP shows no insider buys over the past year, but there have been two insider sells, including the recent transaction by the insider. This trend could indicate a bearish sentiment among insiders, which investors should consider when making investment decisions.
On the day of the insider's recent sell, shares of Western Midstream Partners LP were trading at $25, giving the stock a market cap of $10.046 billion. The price-earnings ratio of 9.78 is higher than the industry median of 9.26, but lower than the company's historical median price-earnings ratio.
According to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates, Western Midstream Partners LP is fairly valued. With a price of $25 and a GuruFocus Value of $26.88, the stock has a price-to-GF-Value ratio of 0.93.
In conclusion, the recent insider sell by OCCIDENTAL PETROLEUM CORP /DE/ is a significant event that investors should take into account. While the company appears to be fairly valued according to the GuruFocus Value, the lack of insider buys and the trend of insider sells could indicate a bearish sentiment among insiders. As always, investors should conduct their own research and consider multiple factors before making investment decisions.
