Should you shadow Occidental Petroleum (NYSE:OXY) insiders in October?

OXY
 Stock
  

USD 70.28  0.84  1.18%   

The basic goal of this article is to give investors our perspective on Occidental for October. We will forecast Occidental Petroleum value for investors.
Published over two months ago
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Over 85.0% of Occidental Petroleum shares are owned by institutional investors. Institutional ownership of Occidental Petroleum Corp refers to the amount of Occidental Petroleum Corp equity owned by mutual funds, pension funds, insurance companies, investment firms, foundations, or other large entities that manage money on behalf of others. Check out our latest analysis of Occidental, including its current ownership diagnostics.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Occidental Petroleum Corp. Regardless of method or technology, to accurately forecast the stock or bond market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Occidental Petroleum

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Occidental Petroleum's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Occidental Petroleum in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Occidental Petroleum. Your research has to be compared to or analyzed against Occidental Petroleum's peers to derive any actionable benefits. When done correctly, Occidental Petroleum's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Occidental Petroleum Corp.

How important is Occidental Petroleum's Liquidity

Occidental Petroleum financial leverage refers to using borrowed capital as a funding source to finance Occidental Petroleum Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Occidental Petroleum financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Occidental Petroleum's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Occidental Petroleum, but it might be worth checking our own buy vs. sell analysis

Acquisition by Kerrigan Sylvia J of 40587 shares of Occidental Petroleum subject to Rule 16b-3

Legal trades by Occidental Petroleum insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Occidental insider trading alert for grant of common stock by Kerrigan Sylvia J, SVP Chief Legal Officer, on 5th of October 2022. This event was filed by Occidental Petroleum Corp with SEC on 2022-10-05. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Details

The current indifference towards the small price fluctuations of Occidental Petroleum Corp may encourage investors to take a closer look at the company as it is trading at a share price of 58.73 on 29,630,100 in trading volume. The company executives did not add any value to Occidental Petroleum investors in August. However, most investors can still diversify their portfolios with Occidental Petroleum Corp to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 3.13. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Occidental Petroleum partners.

Are you still undecided about Occidental Petroleum?

Standard deviation is down to 3.1. It may suggest a possible volatility slide. Occidental Petroleum Corp currently demonstrates below-average downside deviation. It has Information Ratio of 0.05 and Jensen Alpha of 0.15. However, we advise investors to further question Occidental Petroleum Corp expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Occidental Petroleum's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Occidental Petroleum's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

The Bottom Line

When is the right time to buy or sell Occidental Petroleum Corp? Buying stocks such as Occidental Petroleum isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor trade any shares of Occidental Petroleum at this time. The Occidental Petroleum Corp risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Occidental Petroleum.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Occidental Petroleum Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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