Insiders are going crazy with $GRNT!
While analyzing U.S. oil companies I came across this one and decided to investigate it a little further.
To summarize:
Granite Ridge Resources Inc. is an oil and gas exploration and production company that invests in U.S. oil and gas assets, primarily in the Permian Basin. They partner with operators and generate most of their revenue from oil production.
Current price: around $5,80.
Analysts expect future prices to be close to $7 or $8:
But what I find really interesting are the acquisitions of the insiders, because they have been acquiring shares non-stop when most Wall Street executives are mainly dedicated to selling...
This is the data we get if we look at the Nasdaq:
And this is what I mean when I say that Wall Street insiders keep selling stocks:
This insider buying seems really over the top to me, and I would really like to know the motives behind it.
Also, I have checked the company's data on many, many websites and they all say the same thing: they only have 2 employees.
I think this could make sense if we take into account that this company is not dedicated to drilling, but it is in charge of investing so that other companies can drill.
The diversification of their portfolio can be seen on slide 4 of their November 2024 investor presentation, (at the top of slide 12 they also mention "opportunistic share buybacks by the company"), mentioning companies such as:
- Conoco Phillips.
- Marathon Oil.
- Exxon Mobil.
- Chevron.
- OXY.
- Comstock Resources (LODE).
While doing my research I came across the following article from Substack which I found quite useful: as the article mentions, this company is more of a “controlling non op-co.” due to its activity, which means that it is not exclusively dedicated to oil extraction, but rather invests in others to do the dirty work.
Returning to the topic of insider buyouts, I have come across rumors of a possible future acquisition by Northern Oil and Gas.
However, Northern Oil and Gas apparently distanced itself from these rumors just two days after the news was published by Reuters.
My conclusion is that the management team must know something that we don't, because it doesn't seem normal to me to have such a constant acquisition over time by insiders...
In my case, I am watching a support that exists at the $5.80 levels, because I believe that U.S. oil companies could perform relatively well over the next 4 years due to Trump's “drill, baby, drill”.
THIS IS NOT FINANCIAL ADVICE, JUST MY OPINION BASED ON MY RESEARCH. ALWAYS DO YOUR OWN RESEARCH.