Massive Market Sell-Off Has Energy Insiders Buying: Crestwood Equity Partners, Phillips 66, Summit Midstream Partners and More

Investing

Published: January 9, 2016 10:10 am

Last Updated: January 13, 2020 3:14 pm

In what was clearly a week that investors would like to forget, the market was absolutely crushed under the weight of major items that all took place outside the United States. Between the China market meltdown, North Korean nuclear activity and continued belligerence between Iran and Saudi Arabia, the table was set for the worst selling since last September. One group of investors who welcomed the sell-off was insiders at energy and energy-related companies.

We cover insider buying every week at 24/7 Wall St., and we like to remind readers that while insider buying is usually a very positive sign, it is not in of itself a reason to run out and buy a stock. Sometimes insiders and 10% owners have stock purchase plans set up at intervals to add to their holdings. That aside, it still remains a positive indicator.

Here are some of the companies that reported notable insider buying this past week.

Crestwood Equity Partners L.P. (NYSE: CEQP) had insider buying for the third time in the past month. This time, a director at the company acquired a staggering 542,153 shares at between $20.30 and $20.80 apiece. The total for that buy was a solid $11.2 million. The company provides midstream solutions to customers in the crude oil, natural gas and natural gas liquids sectors of the energy industry in the United States. The shares were trading on Friday’s close at $17.31.

Phillips 66 (NYSE: PSX) had a big time buyer on the desk this past week. Warren Buffet’s Berkshire Hathaway was busy purchasing 48,272 shares of the company at prices between $79.37 and $80.18 per share. The total for the trade came to $3.9 million. Phillips 66 operates as an energy manufacturing and logistics company. Its stock was changing hands at $75.21 on Friday’s close.