Energy XXI: A 12.7% Better Bargain Than When Busmire Bought

There's an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. Back on March 6, Energy XXI Ltd.'s Chief Financial Officer, Bruce W. Busmire, invested $104,250.00 into 25,000 shares of EXXI, for a cost per share of $4.17. Bargain hunters tend to pay particular attention to insider buys like this one, because presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money.

START SLIDESHOW:
Click here to find out which 9 other energy stock bargains you can buy cheaper than insiders »

In trading on Tuesday, bargain hunters could buy shares of Energy XXI Ltd. ( EXXI) and achieve a cost basis 12.7% cheaper than Busmire, with shares changing hands as low as $3.64 per share. Energy XXI Ltd. shares are currently trading up about 0.7% on the day. The chart below shows the one year performance of EXXI shares, versus its 200 day moving average:

Energy XXI Ltd. Chart

Looking at the chart above, EXXI's low point in its 52 week range is $2.30 per share, with $24.20 as the 52 week high point — that compares with a last trade of $3.68. By comparison, below is a table showing the prices at which EXXI insider buying was recorded over the last six months:

Purchased Insider Title Shares Price/Share Value
11/18/2014 Scott A. Griffiths Director 10,000 $6.63 $66,300.00
12/01/2014 Bruce W. Busmire Chief Financial Officer 20,000 $3.90 $78,000.00
12/01/2014 Hill A. Feinberg Director 25,000 $3.30 $82,500.00
03/06/2015 Bruce W. Busmire Chief Financial Officer 25,000 $4.17 $104,250.00

According to the ETF Finder at ETF Channel, EXXI makes up 1.39% of the SPDR S&P Oil & Gas Exploration & Production ETF ( XOP) which is trading higher by about 0.8% on the day Tuesday.

If you liked this article you might like

Recent Chapter 11 Filings Raise Questions About SandRidge Energy

Recent Chapter 11 Filings Raise Questions About SandRidge Energy

Recent Chapter 11 Filings Raise Questions About SandRidge Energy

Recent Chapter 11 Filings Raise Questions About SandRidge Energy

Jim Cramer on Energy XXI’s Bankruptcy

Energy XXI to Cut $3B Worth of Debt in Chapter 11 Plan

Energy XXI to Cut $3B Worth of Debt in Chapter 11 Plan

Cramer: The Danger of Aces and Eights in Oil

Cramer: The Danger of Aces and Eights in Oil