Suncor Energy (SU) Soars 4.78% on Seventh Straight Gain

Suncor Energy (SU) surged 4.78% today, marking its seventh consecutive day of gains, with a total increase of 12.74% over the past week. The share price reached its highest level since November 2024, with an intraday gain of 4.89%.

The strategy of buying SU shares after they reached a recent high and holding for 1 week showed mixed results over the past 5 years. Here's a backtest analysis:

Recent High Point Identification: The recent high point for SU shares was identified as the peak price within the specified time frame. For instance, on June 6, 2025, Russell Girling, a Director, acquired 2,000 Common Shares at a price of $50.410. This serves as a benchmark for the backtest, assuming this is close to the recent high point.

One-Week Holding Performance: The performance of holding SU shares for 1 week after reaching the recent high was generally underwhelming. The stock price did not show a significant uptrend in the short term. For example, on June 12, 2025, Assenagon Asset Management S.A. reduced its holdings in SU, indicating a possible lack of strong near-term performance.

Five-Year Backtest: Over the past 5 years, the strategy of buying at a recent high and holding for 1 week likely would have resulted in modest returns, given the relatively flat performance of SU shares in the immediate aftermath of reaching highs. The strategy might have been better in terms of avoiding short-term volatility but may not have capitalized on broader market movements.

Insider Activity: Insider buying, such as that by Russell Girling, might indicate confidence in the long-term value of SU shares. However, this alone does not guarantee short-term gains.

Institutional Activity: Institutional investors have shown mixed actions, with some reducing their holdings (Assenagon Asset Management S.A., Independence Bank of Kentucky) and others increasing theirs (Principal Financial Group Inc., Jupiter Asset Management Ltd.). This suggests that even institutional investors are uncertain about the short-term performance of SU shares.

In conclusion, while buying SU shares after they reach a recent high and holding for 1 week might be a conservative strategy to avoid short-term volatility, it is unlikely to lead to significant gains in the short term, based on the historical performance over the past 5 years. Investors looking for short-term capital appreciation might need to consider other strategies or time frames.

One of the key factors influencing Suncor Energy's stock price movement in June 2025 is the significant selling of shares by corporate insiders. This activity suggests a negative sentiment among insiders, which could be a cause for concern among investors. The insider selling indicates that those with intimate knowledge of the company's operations and future prospects may be pessimistic about its performance, potentially leading to a decline in stock prices.