Insider buying can provide valuable trading signals. Insiders sell company stock for many reasons. But they only buy stock for one reason – they expect it to go up.

In this report, we are going to highlight some substantial insider buying activity at International Petroleum Corp (IPCO:SS). International Petroleum (IPC) is an international oil and gas exploration and production company with a high-quality portfolio of assets across Canada, Malaysia, and France. It is listed on the Toronto Stock Exchange and the Nasdaq Stockholm and currently has a market cap of around SEK 13.10 billion.

Insider Buying at International Petroleum

Our data shows that between February 8 and February 9, IPC’s COO William Lundin purchased 200,000 IPCO shares at an average price of SEK 95.40 per share. This trading activity cost the insider SEK 19.1 million (approx. USD $1.9 million) and increased his holding to 475,000 shares.

Industry Experience

Mr. Lundin has been involved in the natural resource industry his entire life through exposure to several Lundin Group companies (the Lundin Group comprises 11 individually managed public companies focused on the resource sector). Prior to being appointed as COO of International Petroleum in December 2020, he served in a project management position with IPC Canada. So, he is likely to have a good understanding of IPC’s prospects.

It’s worth noting that Mr. Lundin has made several well-timed stock purchases in the recent past. In August 2021, he purchased 25,000 shares at a price of SEK 39.85 per share. And in June 2021, he purchased 16,000 shares at a price of SEK 38.92 per share.

Record Free Cash Flow

International Petroleum’s Q4 results showed that the energy company has been performing well recently.

For 2022, the company reported annual average net production of 48,600 boepd – above the high end of guidance and a new record for the group. This helped it produce record annual free cash flow of USD $430 million and end the year in a net cash position of USD $175 million. Net profit for 2022 was $337.7 million, up roughly 130% year on year.

Looking ahead, IPC said that it is well positioned to deliver on its three strategic pillars of stakeholder returns, M&A, and contingent resource development that drives value creation for shareholders. It noted that this year, it expects to cancel around 7% of its common shares outstanding.

In light of the momentum the company has right now, we see the insider buying here as a bullish signal.

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