3 Stocks With Recent Intensive Insider Buying

|
 |  Includes: GUYFF, PSMI, TRNO
by: Markus Aarnio

Since my January 31 article titled "5 Stocks With Recent Intensive Insider Buying" the stocks that I featured in the article have performed as follows:

Company Price 1/30 Price 2/22 Change
CONE $21.43 $21.93 +2.3%
FFKT $15.08 $17.25 +14.4%
KTYB.OB $21.00 $23.50 +11.9%
AIIFF.PK $2.35 $2.32 -1.3%
NUFSF.PK $5.46 $5.50 +0.7%
Click to enlarge

In this article I will feature five additional stocks that have seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

  1. The stock is purchased by three or more insiders within one month.
  2. The stock is sold by no insiders in the month of intensive purchasing.
  3. At least two purchasers increase their holdings by more than 10%.

1. Terreno Realty Corporation (NYSE:TRNO) engages in acquiring, owning, and operating real estate properties in Los Angeles area, northern New Jersey/New York City, San Francisco Bay area, Seattle area, Miami area, and Washington D.C./Baltimore area.

Click to enlarge

Insider buying by insider (last 30 days)

  • Blake Baird purchased 60,000 shares on February 22, pursuant to a public offering. Blake Baird currently controls 415,807 shares or 3.1% of the company. Blake Baird is Chairman & Chief Executive Officer.
  • Michael Coke purchased 5,000 shares on February 22, pursuant to a public offering. Michael Coke currently holds 181,000 shares or 1.3% of the company. Michael Coke is President & Chief Financial Officer.
  • Leroy Carlson purchased 5,000 shares on February 22, pursuant to a public offering. Leroy Carlson currently holds 24,922 shares or 0.2% of the company. Leroy Carlson serves as a director of the company.
  • Douglas Pasquale purchased 5,500 shares on February 22, pursuant to a public offering. Douglas Pasquale currently holds 46,202 shares or 0.3% of the company. Douglas Pasquale serves as a director of the company.
  • Dennis Polk purchased 2,500 shares on February 22, pursuant to a public offering. Dennis Polk currently holds 22,422 shares or 0.2% of the company. Dennis Polk serves as a director of the company.

Insider buying by calendar month

Here is a table of Terreno Realty's insider trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
February 2013 78,000 0
January 2013 0 0
December 2012 0 0
November 2012 0 0
October 2012 0 0
September 2012 0 0
August 2012 1,000 (preferred stock) 0
July 2012 0 0
June 2012 0 0
May 2012 1,108 0
April 2012 0 0
March 2012 0 0
February 2012 0 0
Click to enlarge

The month of February 2013 has seen the most insider buying.

Financials

The company reported the full-year 2012 financial results with the following highlights:

Revenue $24.5 million
Net income $4.1 million
Cash $5.9 million
Debt $177.0 million
Click to enlarge

On February 21, Terreno Realty announced that the underwriters of its public offering of 5,000,000 shares of common stock had exercised in full their option to purchase an additional 750,000 shares of common stock.

Outlook

Industrial rents have stopped falling in the company's markets and in most cases are rising modestly. Nevertheless, with national availability likely ending 2012 near 13% and new speculative development beginning in some markets, it will take time before most markets exhibit significant rent growth. The company sees a growing set of acquisition opportunities. In the intermediate term the company expects to grow its portfolio to optimize its operating efficiency, increase its shareholder liquidity and position the company to achieve an investment grade credit rating to broaden its access to capital.

Competition

Terreno Realty's competitors include DCT Industrial Trust (NYSE:DCT), EastGroup Properties (NYSE:EGP) and Prologis (NYSE:PLD). Here is a table comparing these companies.

Company TRNO DCT EGP PLD Industry Average (REIT - Industrial)
Market Cap: 232.68M 2.02B 1.67B 18.15B 1.67B
Employees: N/A N/A N/A N/A 1.28K
Qtrly Rev Growth (yoy): 0.65 0.04 0.06 0.15 0.13
Revenue: 31.17M 261.87M 186.18M 2.04B 186.18M
Gross Margin: 0.64 0.73 0.71 0.72 0.71
EBITDA: 13.94M 168.50M 123.24M 1.26B 139.82M
Operating Margin: 0.14 0.17 0.33 0.23 0.34
Net Income: -2.65M -21.78M 25.40M -143.68M N/A
EPS: 0.19 -0.06 1.13 -0.18 0.02
P/E: 93.12 N/A 50.83 N/A 50.83
PEG (5 yr expected): N/A 6.44 3.01 N/A 3.01
P/S: 7.34 7.57 8.88 8.76 6.74
Click to enlarge
Click to enlarge

Terreno Realty's P/S ratio is in line with the industry average.

My analysis

There have been five different insiders buying and there have not been any insiders selling the shares during the past 30 days. The stock is trading at a P/E ratio of 93.12. The company has a book value of $19.00 per share and the stock has a 2.77% dividend yield. The stock could be a good pick below the book value.

2. Peregrine Semiconductor Corporation (NASDAQ:PSMI) designs, develops, markets, and sells radio frequency integrated circuits based on UltraCMOS technology.

Click to enlarge

Insider buying by insider (last 30 days)

  • Jay Biskupski purchased 2,000 shares on February 21, and currently holds 2,001 shares or less than 0.1% of the company. Jay Biskupski has served as Chief Financial Officer since February 2009.
  • Anthony Thornley purchased 10,000 shares on February 20, and currently holds 10,001 shares or less than 0.1% of the company. Anthony Thornley has served as a director since November 2010.
  • Elton Sherwin purchased 12,000 shares on February 19-20, and currently holds 12,001 shares or less than 0.1% of the company. Elton Sherwin has served as a member of board of directors since October 2004.

Insider buying by calendar month

Here is a table of Peregrine Semiconductor's insider trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
February 2013 24,000 0
January 2013 0 0
December 2012 0 0
November 2012 0 0
October 2012 0 0
September 2012 0 0
August 2012 400,000 104,848
July 2012 0 47,000
Click to enlarge

The month of February 2013 has seen the most insider buying since August 2012.

Financials

The company reported the full-year 2012 financial results on February 6, with the following highlights:

Revenue $203.9 million
Net income $2.8 million
Cash $74.5 million
Click to enlarge

Outlook

For the first quarter of 2013, the company expects revenue to be in the range of $43 million to $46 million. First-quarter GAAP gross margin is expected to be in the range of 43.0% to 44.5%.

Competition

Peregrine Semiconductor's competitors include Hittite Microwave Corporation (NASDAQ:HITT) and RF Micro Devices (RFMD). Here is a table comparing these companies.

Company PSMI HITT RFMD Industry Average (Semiconductor - Integrated Circuits)
Market Cap: 301.81M 2.00B 1.29B 57.58M
Employees: N/A 469 3,986 246.00
Qtrly Rev Growth (yoy): 0.77 -0.01 0.20 0.84
Revenue: 203.91M 256.10M 871.47M 129.01M
Gross Margin: 0.39 0.74 0.31 0.12
EBITDA: 13.25M 116.19M 54.50M -26.57M
Operating Margin: 0.04 0.41 -0.02 -0.25
Net Income: 2.76M 72.10M -50.03M N/A
EPS: 0.15 2.35 -0.18 -3.16
P/E: 63.20 28.07 N/A N/A
PEG (5 yr expected): N/A 2.25 2.33 N/A
P/S: 1.45 7.67 1.48 0.24
Click to enlarge
Click to enlarge

Peregrine Semiconductor's gross margin is above the industry average.

My analysis

There have been three different insiders buying and there have not been any insiders selling the shares during the past 30 days. The stock is trading at a P/E ratio of 63.20 and a forward P/E ratio of 25.62. The company has a book value of $3.52 per share. I have a cautiously bullish bias for the stock currently based on the relatively low P/S ratio and the intensive insider buying.

3. Guyana Goldfields (OTCPK:GUYFF) engages in the acquisition, exploration, evaluation, and development of gold resource properties in Guyana.

Click to enlarge

Insider buying by insider (last 30 days)

  • David Beatty purchased 10,000 shares on January 25, and currently holds 10,000 shares or less than 0.1% of the company. David Beatty serves as a director of the company.
  • Robert Bondy purchased 10,000 shares on February 11, and currently holds 145,600 shares or 0.1% of the company. Robert Bondy serves as a director of the company.
  • Daniel Noone purchased 20,000 shares on February 22, pursuant to a public offering. Daniel Noone currently holds 210,200 shares or 0.2% of the company. Daniel Noone is Vice President, Exploration.
  • Patrick Sheridan purchased 345,000 shares on February 22, pursuant to a public offering. Patrick Sheridan currently holds 5,073,234 shares or 4.1% of the company. Patrick Sheridan is Chief Executive Officer.

Insider buying by calendar month

Here is a table of Guyana Goldfields' insider trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
February 2013 375,000 0
January 2013 10,000 0
December 2012 0 0
November 2012 0 0
October 2012 0 0
September 2012 0 0
Click to enlarge

The month of February 2013 has seen the most insider buying.

Financials

The company reported the full-year fiscal 2012, which ended October 31, 2012, financial results on January 16, with the following highlights:

Revenue $0
Net loss $9.7 million
Cash $37.6 million
Click to enlarge

On February 22, 2013, Guyana Goldfields announced that it had closed its previously announced bought deal offering pursuant to which the company issued 29,420,000 common shares, at a price of $3.40 per common share for gross proceeds of approximately $100 million.

My analysis

The stock has a $7.5 price target from the Point and Figure chart. There have been four different insiders buying and there have not been any insiders selling the shares during the past 30 days. The company's Aurora mine will produce 3.29 million ounces of gold over an initial 17 year mine life at an operating cash cost of $527 per ounce (including royalty). The average annual gold production over the life of mine is 194,000 ounces, and averages 231,000 ounces per year over the first 10 years. Commercial production is expected to commence in Q1 2015. The estimated initial capital required to achieve commercial production is $205 million and the company just raised $100 million. I believe the stock could be a good pick at the current level based on the intensive insider buying and the fundamentals for the Aurora gold project.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in OTCPK:GUYFF over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.