Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group. Many producers may be cheating and feeding the oil glut by pumping oil like there’s no tomorrow. Simply Wall Street Pty Ltd 3 Beaten-Down Stocks Look Attractive, Aphria (TSX:APHA) Stock Plunges: Marijuana Industry in Trouble. There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. That’s a positive. Fool contributor Joey Frenette has no position in any stocks mentioned. But no-one is immune from buying too high. While the broader market gained around 3.5% in the last year, Husky Energy shareholders lost 15% (even including dividends). You can find out about the insider purchases of Husky Energy by clicking this link. We realise that Buffett has said investors should ‘buy when there is blood on the streets’, but we caution that investors should first be sure they are buying a high quality businesses. Oil prices are starting to drop from the $50 levels, and some believe another oil crash could be in the works, as the OPEC pact starts to fall apart. Why is Husky Energy stock dropping? Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising. Should You Buy Aphria (TSX:APHA) After Its Recent Pullback? Just Released! You can find out about the insider purchases of Husky Energy by clicking this link. Other metrics might give us a better handle on how its value is changing over time. Both internal and exogenous shocks are to blame. Husky Energy is one of Canada's largest integrated energy companies, operating in western Canada, the United States, and the Asia-Pacific and Atlantic regions. We note that the company has reported results fairly recently; and the market is hardly delighted. Statistically speaking, long term investing is a profitable endeavour. Forget Suncor Energy (TSX:SU): These Stocks Can Give You $4,500 Annually, How to Profit From the Market Crash: 2 Stocks to Trade in Short Term. Our research team consists of equity analysts with a public, market-beating track record. Current as of October 27, 2020. The Motley Fool Canada » Energy Stocks » Husky Energy Inc. Is Too Cheap to Ignore, Joey Frenette | March 15, 2017 | More on: HSE. There are plenty of other companies that have insiders buying up shares. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Thank you for reading. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. In the case of Husky Energy, it has a TSR of -52% for the last 5 years. Husky has no recent gains from the current rally to $50, so I believe the company still has a decent margin of safety compared to its peers in the oil patch. Li Ka-Shing, Hong Kong billionaire and controller of Husky, knows that the capital-intensive assets aren’t great in an environment where oil prices are low, so he’s planning to sell some of the company’s eastern Canadian offshore assets to free up billions of dollars’ worth of cash. Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share. Husky Energy was recommended as a Top Pick by Bruce Murray on 2020-08-24. This article by Simply Wall St is general in nature. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. Husky Energy Inc. (TSX:HSE) has been crushed by the rout in oil prices, as the stock is now off 56% from its high in 2014. 24 Kippax St, Sydney That said, we think earnings and revenue growth trends are even more important factors to consider. We aim to bring you long-term focused research analysis driven by fundamental data. Since then, HSE shares have decreased by 4.8% and is now trading at C$3.16. Sure, it’s rarely a good idea to invest in a company that has a history of dividend cuts, but the management team is looking to change things up so that such a cut doesn’t happen again. Husky Energy Inc. (HSE.TO)'s stock was trading at C$3.32 on March 11th, 2020 when COVID-19 (Coronavirus) reached pandemic status according to the World Health Organization (WHO). You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow). The capital-intensive eastern Canadian assets will continue to drag the company down, so if oil drops below $30 again, there’s a possibility that Husky could fall even further. That exceeds its share price return that we previously mentioned. The company has been struggling to rally, even with oil prices climbing above the $50 levels. © 2020 The Motley Fool Canada, ULC. Earnings reports or recent company news can cause the stock price to drop. This is your chance to get in early on what could prove to be very special investment advice. This has probably encouraged some shareholders to sell down the stock. That’s not a lot of fun for true believers. Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada. Not to alarm you, but you’re about to miss an important event. ACN 600 056 611, Simply Wall St is a financial technology startup focused on providing unbiased, high-quality research coverage on every listed company in the world. Arguably, the revenue drop of 4.6% a year for half a decade suggests that the company can’t grow in the long term. That exceeds its share price return that we previously mentioned. Husky’s assets are extremely capital intensive, and it has been tough on the company’s balance sheet. If you believe oil prices have stabilized and won’t crash again, then Husky could be a fantastic contrarian play. list of growing companies that insiders are buying. Simply click the link below to grab your free copy and discover all 5 of these stocks now. That would generally be considered a positive, so we are surprised to see the share price is down. The dividends paid by the company have thusly boosted the total shareholder return. Eventually, Husky will be a decent performer in a low oil price environment, but for now, the company is highly sensitive to drops in crude prices. Please read the Privacy Statement and Terms of Service for more information. If you are thinking of buying or selling Husky Energy stock, you should check out this free report showing analyst profit forecasts. All rights reserved. 5 Stocks Under $49 (FREE REPORT). Find the latest HUSKY ENERGY INC. (HSE.TO) stock discussion in Yahoo Finance's forum. In the case of Husky Energy, it has a TSR of -52% for the last 5 years. Returns since inception, October 2013. Husky Energy Inc. has been crushed by the rout in oil prices, as the stock is now off 56% from its high in 2014. OPEC isn’t going to police its members, so it’s quite possible that a lot of oil companies could give up their recent gains. The company trades at a ridiculously cheap 0.9 price-to-book multiple, and there’s a high chance the company will reinstate its dividend later this year, assuming oil prices don’t crash again. The dividends paid by the company have thusly boosted the total shareholder return. I understand I can unsubscribe from these updates at any time. Shareholders have had an even rougher run lately, with the share price down 14% in the last 90 days. Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune. Find the latest HUSKY ENERGY INC. (HSE.TO) stock quote, history, news and other vital information to help you with your stock trading and investing. Husky Energy became profitable within the last five years. Regrettably, last year’s performance caps off a bad run, with the shareholders facing a total loss of 13% per year over five years. What Husky Energy (TSX:HSE) Investors Should Do After a Bleak Q1 Vineet Kulkarni | April 30, 2020 Husky Energy (TSX:HSE) stock soared more than 12% yesterday, despite a discouraging Q1. It’s most likely that this cash will be used for an investment in Asia, which will be better for the company if oil prices drop like they did in the early part of last year. Click here to see them for FREE on Simply Wall St. You can check out the latest numbers in our company report. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock. It is important to consider the total shareholder return, as well as the share price return, for any given stock. You probably do not want to miss this free list of growing companies that insiders are buying. Don't miss out! The company eventually cut its dividend entirely, and many investors have taken the stock off their radars because of this cut. With an attractive, lost-cost production business, why has Husky stock fared so poorly recently? TSX Stocks: 2 Stars With Reliable 5% Yields, Love High Dividend Yields? It’s good to see that there was some significant insider buying in the last three months. Learn more about. If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. Simply Wall St has no position in the stocks mentioned. Share your opinion and gain insight from other stock traders and investors. I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. Read the latest stock experts ratings for Husky Energy. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. For example the Husky Energy Inc. (TSE:HSE) share price dropped 57% over five years. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested.