3 Stocks With Recent Intensive Insider Buying

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 |  Includes: DGIT, HBAN, ZEUS
by: Markus Aarnio

Since my January 4, 2012, article titled "3 Stocks With Recent Intensive Insider Buying" the stocks that I featured in the article have performed as follows:

Company Price 1/13 Price 3/1 Change
CODI $15.03 $15.74 +4.7%
PTN $0.63 $0.63 +0%
MKL $439.99 $485.02 +10.2%
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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. Huntington Bancshares Incorporated (NASDAQ:HBAN) operates as the holding company for The Huntington National Bank that provides commercial, small business, and consumer banking services.

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Insider buying by insider (last 30 days)

  • Paul Heller purchased 10,000 shares on February 27 and currently holds 104,786 shares or less than 0.1% of the company. Paul Heller is Senior Executive Vice President, Chief Technology & Operations Officer.
  • Peter Kight purchased 14,285 shares on February 27 and currently holds 14,285 shares or less than 0.1% of the company. Peter Kight serves as a director of the company.
  • James Dunlap purchased 5,000 shares on February 28 and currently holds 175,011 shares or less than 0.1% of the company. James Dunlap is Senior Executive Vice President, Director of Regional and Commercial Banking.
  • Daniel Benhase purchased 10,000 shares on February 26 and currently holds 319,082 shares or less than 0.1% of the company. Daniel Benhase is Senior Executive Vice President, Wealth, Government & Home Lending Group Director.
  • Stephen Steinour purchased 10,000 shares on February 26 and currently holds 2,000,391 shares or 0.2% of the company. Stephen Steinour is Chairman, President and Chief Executive Officer.
  • David Porteous purchased 1,160 shares on February 7 and currently holds 496,857 shares or less than 0.1% of the company. David Porteous serves as a director of the company.

Insider buying by calendar month

Here is a table of Huntington Bancshares' insider trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
February 2013 50,445 0
January 2013 40,000 0
December 2012 0 0
November 2012 20,000 58,000
October 2012 10,000 0
September 2012 0 0
August 2012 21,100 0
July 2012 0 0
June 2012 0 0
May 2012 10,000 0
April 2012 26,150 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 January 17 with the following highlights:

Net income $609.0 million
Book value $6.41 per share
Tangible book value $5.78 per share
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Competition

Huntington Bancshares' competitors include Fifth Third Bancorp (NASDAQ:FITB), JPMorgan Chase & Co. (NYSE:JPM) and KeyCorp (NYSE:KEY). Here is a table comparing these companies.

Company HBAN FITB JPM KEY Industry Average (Regional - Midwest Banks)
Market Cap: 5.95B 13.96B 186.19B 8.64B 12.71B
Employees: N/A N/A 258,965 15,589 10.61K
Qtrly Rev Growth (yoy): 0.13 0.29 0.19 0.02 0.19
Revenue: 2.70B 6.29B 91.66B 4.00B 3.87B
Operating Margin: 0.38 0.35 0.36 0.30 0.32
Net Income: 609.03M 1.54B 19.88B 827.00M N/A
EPS: 0.71 1.66 5.20 0.89 0.89
P/E: 9.96 9.53 9.41 10.48 18.93
PEG (5 yr expected): 1.92 2.32 1.24 2.68 1.78
P/S: 2.19 2.22 2.03 2.16 3.01
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Huntington Bancshares is trading below the industry average P/S and P/E ratios, which could explain some of the insider buying.

My analysis

There have been six 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 9.96 and a forward P/E ratio of 10.19. The company has a book value of $6.41 per share and the stock has a 2.28% dividend yield. The stock could be a good pick closer to the book value.

2. Olympic Steel (NASDAQ:ZEUS) engages in the processing and distribution of metal products in the United States.

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Insider buying by insider (last 30 days)

  • Ralph M. Della Ratta purchased 1,226 shares on February 27 and currently holds 9,820 shares or less than 0.1% of the company. Ralph M. Della Ratta serves as a director of the company.
  • Donald McNeeley purchased 20,000 shares on February 22-26 and currently holds 125,778 shares or 1.2% of the company. Donald McNeeley serves as a director of the company.
  • Richard Manson purchased 500 shares on February 25 and currently holds 7,447 shares or less than 0.1% of the company. Richard Manson is Vice President & Treasurer.

Insider buying by calendar month

Here is a table of Olympic Steel's insider trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
February 2013 21,726 0
January 2013 0 0
December 2012 0 0
November 2012 17,000 0
October 2012 0 0
September 2012 0 0
August 2012 15,142 0
July 2012 0 0
June 2012 15,492 0
May 2012 36,261 0
April 2012 0 0
March 2012 1,000 0
February 2012 4,000 0
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The month of February 2013 has seen the most insider buying since May 2012.

Financials

The company reported the full year 2012 financial results on February 21 with the following highlights:

Revenue $1.4 billion
Net income $1.7 million
Cash $7.8 million
Debt $241.7 million
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Competition

Olympic Steel's competitors include Reliance Steel & Aluminum Co. (NYSE:RS). Here is a table comparing these two companies.

Company ZEUS RS Industry Average (Metal Fabrication)
Market Cap: 225.19M 5.01B 380.39M
Employees: N/A N/A 3.63K
Qtrly Rev Growth (yoy): -0.09 -0.07 0.21
Revenue: 1.38B 8.44B 1.27B
Gross Margin: 0.20 0.26 0.26
EBITDA: 45.89M 810.70M 67.01M
Operating Margin: 0.02 0.08 0.09
Net Income: 2.28M 403.50M N/A
EPS: 0.21 5.33 0.87
P/E: 99.42 12.36 19.43
PEG (5 yr expected): 4.73 1.23 1.00
P/S: 0.16 0.60 1.11
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Olympic Steel 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, five neutral ratings and zero sell ratings, with an average target price of $23.00. The stock is trading at a P/E ratio of 99.42 and a forward P/E ratio of 9.15. The company has a book value of $27.46 per share and the stock has a 0.39% dividend yield. The stock could be a good pick below the book value.

3. Digital Generation (NASDAQ:DGIT) provides digital technology services that enable the electronic delivery of advertisements, syndicated programs, and video news releases to traditional broadcasters, online publishers, and other media outlets.

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Insider buying by insider (last 30 days)

  • Scott Ginsburg purchased 270,620 shares on February 27-28 and currently holds 2,340,774 shares or 8.3% of the company. Scott Ginsburg is Executive Chairman of the Board of Directors.
  • Neil Nguyen purchased 20,500 shares on February 27 and currently holds 25,665 shares or less than 0.1% of the company. Neil Nguyen is President and Chief Executive Officer of the company.
  • Andy Ellenthal purchased 6,250 shares on February 27 and currently holds 25,994 shares or less than 0.1% of the company. Andy Ellenthal is Executive Vice President of Sales and Ad Operations.

Insider buying by calendar month

Here is a table of Digital Generation's insider trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
February 2013 297,370 0
January 2013 0 0
December 2012 0 0
November 2012 0 0
October 2012 0 0
September 2012 0 0
August 2012 0 0
July 2012 0 0
June 2012 0 0
May 2012 0 0
April 2012 0 0
March 2012 0 0
February 2012 0 0
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The month of February 2013 has seen the only insider buying during the past 12 months.

Financials

The company reported the full year 2012 financial results on February 19 with the following highlights:

Revenue $386.6 million
Net loss $239.8 million
Cash $84.8 million
Debt $453.9 million
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Competition

Here is a table comparing Digital Generation to the Business Services industry.

Company DGIT Industry Average (Business Services)
Market Cap: 214.44M 982.26M
Employees: N/A 6.02K
Qtrly Rev Growth (yoy): -0.04 0.16
Revenue: 386.61M 431.61M
Gross Margin: 0.65 0.37
EBITDA: 108.23M 49.92M
Operating Margin: 0.13 0.10
Net Income: -238.76M N/A
EPS: -8.73 0.53
P/E: N/A 26.29
PEG (5 yr expected): 0.67 1.19
P/S: 0.55 1.60
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Digital Generation 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 is one analyst buy rating, five neutral ratings and one sell rating, with an average target price of $12.00. The stock is trading at a forward P/E ratio of 14.11. The company has a book value of $11.16 per share. The stock could be a good pick below the book value.

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