3 Stocks With Recent Intensive Insider Buying

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Includes: BIP, GEGSQ, OILT
by: Markus Aarnio

Since my November 26, 2012 article, dealing with insider buying, the stocks that I featured in the article have performed as follows:

Company Price 11/23 Price 2/28 Change
CQP $21.13 $24.00 +13.6%
MPO $6.26 $7.46 +19.2%
SXL $50.58 $62.53 +23.6%
MWE $50.84 $57.17 +12.5%
BAS $10.15 $14.63 +44.1%
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In this article I will feature three 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. Global Geophysical Services (GGS) provides an integrated suite of seismic data solutions to the oil and gas industry worldwide.

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Insider buying by insider (last 30 days)

  • Michael Forrest purchased 10,000 shares on February 28, and currently controls 207,068 shares or 0.5% of the company. Michael Forrest serves as a director of the company.
  • Richard White purchased 30,000 shares on February 27, and currently holds 247,679 shares or 0.7% of the company. Richard White was appointed as President and Chief Executive Officer in October 2012 and nominated as Chairman of the Board in January 2013.
  • Karl Kurz purchased 20,000 shares on February 26, and currently holds 29,087 shares or less than 0.1% of the company. Karl Kurz serves as a director of the company.

Insider buying by calendar month

Here is a table of Global Geophysical Services' insider trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
February 2013 60,000 0
January 2013 0 0
December 2012 0 25,532
November 2012 25,000 0
October 2012 0 0
September 2012 0 0
August 2012 15,160 7,933
July 2012 0 0
June 2012 2,000 2,830
May 2012 0 1,500
April 2012 0 31,850
March 2012 0 21,250
February 2012 0 28,500
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The month of February 2013 has seen the most insider buying.

Financials

The company reported the full-year 2012 financial results on February 25, with the following highlights:

Revenue $339.0 million
Net loss $13.3 million
Cash $23.4 million
Debt $334.3 million
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Competition

Global Geophysical Services' competitors include Compagnie G (NYSE:CGG) and Petroleum Geo Services (OTCPK:PGSVY). Here is a table comparing these companies.

Company GGS CGG PGSVY Industry Average (Oil & Gas Equipment & Services)
Market Cap: 87.79M 3.77B 3.43B 746.59M
Employees: N/A 7,198 N/A 2.19K
Qtrly Rev Growth (yoy): -0.51 0.07 0.05 0.23
Revenue: 338.98M 3.11B 1.52B 556.80M
Gross Margin: 0.29 0.21 0.58 0.29
EBITDA: 178.05M 889.99M 777.25M 82.17M
Operating Margin: 0.13 0.09 0.19 0.11
Net Income: -13.33M 85.40M 185.54M N/A
EPS: -0.36 0.55 0.85 0.24
P/E: N/A 44.85 18.65 15.23
PEG (5 yr expected): N/A 0.70 N/A 0.83
P/S: 0.26 1.21 2.26 1.33
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Global Geophysical Services is trading below the industry average P/S ratio, which could explain some of the insider buying.

My analysis

There have been three different insiders buying and there have not been any insiders selling the shares during the past 30 days. There are zero analyst buy ratings, two neutral ratings and one sell rating, with an average target price of $17.00. The stock is trading at a forward P/E ratio of 5.57. The company has a book value of $3.59 per share. The stock could be a good pick below the book value.

2. Brookfield Infrastructure Partners L.P. (NYSE:BIP) engages in the utilities, transportation and energy, and timber businesses.

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Insider buying by insider (last 30 days)

  • David Hamill purchased 197 shares on February 15-26, pursuant to a purchase/ownership plan. David Hamill currently holds 3,664 shares or less than 0.1% of the company. David Hamill serves as a director of the company.
  • Frank McKenna purchased 4,000 shares on February 25, and currently holds 4,000 shares or less than 0.1% of the company. Frank McKenna is an insider of the company.
  • Danesh Varma purchased 381 shares on February 15, pursuant to a purchase/ownership plan. Danesh Varma currently holds 381 shares or less than 0.1% of the company. Danesh Varma serves as a director of the company.

Insider buying by calendar month

Here is a table of Brookfield Infrastructure Partners' insider trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
February 2013 4,578 0
January 2013 0 0
December 2012 0 0
November 2012 0 0
October 2012 0 0
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The month of February 2013 has seen the most insider buying.

Financials

The company reported the full-year 2012 financial results on February 8, with the following highlights:

Funds From Operations [FFO] $462 million
Net income $106 million
Cash $263 million
Debt $7.9 billion
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Competition

Here is a table comparing Brookfield Infrastructure Partners to the Electric Utilities industry average.

Company BIP Industry Average (Electric Utilities)
Market Cap: 5.69B 4.24B
Employees: N/A 2.60K
Qtrly Rev Growth (yoy): 0.43 0.08
Revenue: 2.00B 3.65B
Gross Margin: 0.45 0.36
EBITDA: 815.00M 894.20M
Operating Margin: 0.29 0.13
Net Income: 90.00M N/A
EPS: 0.47 1.07
P/E: 84.36 16.03
PEG (5 yr expected): 6.97 2.46
P/S: 2.84 1.50
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Brookfield Infrastructure Partners is growing faster than the industry, which could explain some of the insider buying.

My analysis

The stock has a $66 price target from the Point and Figure chart. 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 84.36 and a forward P/E ratio of 32.50. The company has a book value of $25.02 per share and the stock has a 3.78% dividend yield. I have a cautiously bullish bias for the stock currently based on the intensive insider buying.

3. Oiltanking Partners, L.P. (NYSE:OILT) provides storage, terminaling, and transportation services for third-party companies engaged in the production, distribution, and marketing of crude oil, refined petroleum products, and liquefied petroleum gas.

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Insider buying by insider (last 30 days)

  • Mark Leland purchased 1,000 shares on February 7-21, pursuant to a Rule 10b5-1 trading plan. Mark Leland currently holds 7,000 shares or less than 0.1% of the company. Mark Leland serves as a director of the company.
  • David Griffis purchased 116 shares on February 7, pursuant to a Rule 10b5-1 trading plan. David Griffis currently holds 8,150 shares or less than 0.1% of the company. David Griffis has served as a member of the board of directors of the company's general partner since March 2011.
  • Anne-Marie Ainsworth purchased 500 shares on February 5, pursuant to a Rule 10b5-1 trading plan. Anne-Marie Ainsworth currently holds 2,500 shares or less than 0.1% of the company. Anne-Marie Ainsworth has served as President and Chief Executive Officer and a member of the board of directors of the company's general partner and as President and Chief Executive Officer of Oiltanking Holding Americas since November 2012.

Insider buying by calendar month

Here is a table of Oiltanking Partners' insider trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
February 2013 1,616 0
January 2013 1,128 0
December 2012 2,140 0
November 2012 1,415 0
October 2012 1,104 0
September 2012 1,106 0
August 2012 1,127 0
July 2012 127 0
June 2012 125 0
May 2012 136 0
April 2012 133 0
March 2012 131 0
February 2012 130 0
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The month of February 2013 has seen the second highest insider buying activity since February 2012.

Financials

The company reported the third-quarter financial results on November 7, with the following highlights:

Revenue $33.3 million
Net income $14.9 million
Cash $6.1 million
Debt $51.3 million
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Outlook

Carlin Conner, Chairman, President and Chief Executive Officer of the Partnership's general partner commented on November 7:

Our current crude storage expansion projects and crude pipeline project are on budget and ahead of schedule with an additional 1.1 million barrels of new storage capacity and the pipelines expected to be placed into service by early January of 2013.

Competition

Oiltanking Partners' competitors include Enbridge Energy Partners LP (NYSE:EEP), Enterprise Products Partners L.P. (NYSE:EPD) and Kinder Morgan Energy Partners, L.P. (NYSE:KMP). Here is a table comparing these companies.

Company OILT EEP EPD KMP Industry Average (Oil & Gas Pipelines)
Market Cap: 1.71B 8.40B 50.53B 32.58B 5.42B
Employees: N/A N/A N/A 10,685 710.00
Qtrly Rev Growth (yoy): 0.16 -0.15 -0.05 0.31 0.24
Revenue: 130.34M 6.71B 42.52B 8.64B 1.77B
Gross Margin: 0.73 0.30 0.08 0.48 0.28
EBITDA: 76.64M 1.07B 4.17B 3.44B 527.48M
Operating Margin: 0.47 0.11 0.07 0.27 0.09
Net Income: 57.91M 369.20M 2.42B 591.00M N/A
EPS: 1.49 1.27 2.71 -0.22 1.25
P/E: 29.48 21.82 20.92 N/A 26.03
PEG (5 yr expected): 0.56 5.72 3.45 2.89 2.31
P/S: 13.10 1.25 1.19 3.77 1.71
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Oiltanking Partners' gross margin is above the industry average, which could explain some of the insider buying.

My analysis

The stock has a $68 price target from the Point and Figure chart. There have been four insider buy transactions and there have not been any insider sell transactions during the past 30 days. The stock is trading at a P/E ratio of 29.48 and a forward P/E ratio of 26.61. The company has a book value of $7.34 per share and the stock has a 3.55% dividend yield. The 200-day moving average is currently at $36, which could be a good entry point for the stock.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in GGS 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.