The whispers on Wall Street are growing.
The insiders are becoming more and more active, and in the current market conditions, their activities are now even more impactful.
So what should you expect for the company’s stock that just experienced the largest insider buy since 2001?
John Stumpf is both the CEO of Wells Fargo (WFC) and a director at Chevron (CVX).
And apparently he’s been holding on to some cash to invest…
I say that because he just made the largest individual insider purchase since Chevron acquired Texaco in 2001.
On May 11, Stumpf bought $19.4 worth of shares of CVX—That’s 180,000 shares purchased for an average of $108.10 each!
So what does that mean for CVX?
Well, I can tell you that insider activity isn’t prevalent for this oil and gas company. Stumpf’s purchase just over a week ago is actually the only insider purchase of CVX in over a year.
And Stumpf isn’t exactly the most active insider himself. His last insider buy in CVX was in early 2011 when he bought just 10,000 shares.
Now let’s examine the actual stock a bit more closely…
CVX started the year off at $110 per share, but almost immediately fell down to around $106. Then, after several drops brought the price down to $100, shares are now back near $107.
But that’s all part of a downward trend that’s been in motion ever since CVX’s peak at $130 per share in July of 2014.
So does Stumpf see a raging comeback in the near future for CVX?
We know that CVX’s earnings report at the very beginning of May showed good results as it was able to beat expectations, yet the share price is still down on the year.
But we can also be sure that Stumpf wouldn’t be throwing nearly $20 million into the stock of a company he’s the director of for no reason. He clearly sees CVX as a good value at its current price, but is that because of basic fundamentals or because he knows some privileged information about the company?
What I can see know is that CVX is at one of its lowest price points in nearly 2 years, but that doesn’t necessarily make it a buy because of its cheap pricing.
I can tell you that CVX actually looks to be a picture perfect example for a specific type of trade that could net you and I big money very quickly. And the simple secret to knowing how to make that trade is explained in Code Breaker.
