3 Stocks With Recent Intensive Insider Buying

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 |  Includes: IEP, MBTF, VER
by: Markus Aarnio

Since my December 7, 2012, article titled "5 Stocks With Recent Intensive Insider Buying", the stocks that I featured have performed as follows:

Company Price 12/6 Price 3/5 Change
WFR $2.97 $5.03 +69.4%
FSCI $24.96 $38.61 +54.7%
WLDN $2.15 $2.30 +7.0%
CRFN $4.91 $4.20 -14.5%
CHFC $21.59 $24.86 +15.1%
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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. Icahn Enterprises L.P. (NYSE:IEP), a master limited partnership, is a diversified holding company engaged in nine primary business segments: Investment, Automotive, Energy, Gaming, Railcar, Food Packaging, Metals, Real Estate and Home Fashion.

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Insider buying by insider (last 30 days)

  • Keith Cozza purchased 2,000 Depositary Units on March 1, pursuant to the Directed Unit Program. Keith Cozza currently holds 2,000 Depositary Units or less than 0.1% of the company. Keith Cozza has served as a director of Icahn Enterprises G.P., the company's general partner, since September 2012.
  • Jack Wasserman purchased 800 Depositary Units on March 1, pursuant to the Directed Unit Program. Jack Wasserman currently holds 800 Depositary Units or less than 0.1% of the company. Jack Wasserman has served as a director of the general partner, Icahn Enterprises G.P., since December 1993 and is chairman of its audit committee.
  • Carl Icahn purchased 15,900 Depositary Units on March 1, pursuant to the Directed Unit Program. Carl Icahn currently controls 97,764,251 Depositary Units or 90.5% of the company. Carl Icahn has been the principal beneficial shareholder of Icahn Enterprises L.P. and has served as Chairman of the board and as a director and the owner of the general partner, Icahn Enterprises G.P., since 1990.
  • Sunghwan Cho purchased 1,100 Depositary Units on March 1, pursuant to the Directed Unit Program. Sunghwan Cho currently holds 1,100 Depositary Units or less than 0.1% of the company. Sunghwan Cho has served as Chief Financial Officer of Icahn Enterprises G.P. since March 2012, and as a director since September 2012.
  • James Nelson purchased 1,600 Depositary Units on March 1, pursuant to the Directed Unit Program. James Nelson currently holds 1,600 Depositary Units or less than 0.1% of the company. James Nelson has served as a director of general partner, Icahn Enterprises G.P., since June 2001.
  • Daniel Ninivaggi purchased 1,500 Depositary Units on March 1, pursuant to the Directed Unit Program. Daniel Ninivaggi currently holds 1,500 Depositary Units or less than 0.1% of the company. Daniel Ninivaggi has served as President of Icahn Enterprises L.P. and its general partner, Icahn Enterprises G.P., since April 5, 2010, as its Principal Executive Officer, or chief executive, since August 4, 2010, and as a director since March 13, 2012.

Insider buying by calendar month

Here is a table of Icahn Enterprises' insider trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
March 2013 22,900 0
February 2013 0 0
January 2013 12,995,584 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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There have been 13,018,484 shares purchased this year and there have not been any shares sold since August 2003.

Financials

The company reported the preliminary full year 2012 financial results on March 1, with the following highlights:

Revenue $15.6 billion
Net income $350 million
Net Asset Value $67.98 per share
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Competition

Icahn Enterprises' competitors include Berkshire Hathaway (NYSE:BRK.A). Here is a table comparing these two companies.

Company IEP BRK-A Industry Average (Property Management)
Market Cap: 6.45B 254.79B 394.24M
Employees: 59,559 N/A 108.00
Qtrly Rev Growth (yoy): 0.85 0.18 0.26
Revenue: 14.61B 162.46B 80.20M
Gross Margin: 0.22 0.22 0.55
EBITDA: 2.44B 30.13B 26.06M
Operating Margin: 0.13 0.15 0.23
Net Income: 616.00M 14.82B N/A
EPS: 6.23 8,977.20 0.11
P/E: 9.87 17.20 12.64
PEG (5 yr expected): N/A 1.54 1.78
P/S: 0.44 1.55 3.76
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Icahn Enterprises is trading below the industry average P/S ratio, 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 9.87 and has a dividend yield of 6.52%. I believe the stock could be a good pick below the Net Asset Value of $67.98 per share based on the intensive insider buying.

2. American Realty Capital Properties (ARCP) owns and acquires single tenant, freestanding commercial real estate that is net leased on a medium-term basis, primarily to investment grade credit rated and other creditworthy tenants.

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Insider buying by insider (last 30 days)

  • Edward Weil purchased 7,800 shares on March 4, and currently holds 7,800 shares or less than 0.1% of the company. Edward Weil serves as President of American Realty Capital Properties.
  • Brian Jones purchased 2,000 shares on March 4, and currently holds 2,000 shares or less than 0.1% of the company. Brian Jones serves as Chief Operating Officer of American Realty Capital Properties.
  • Nicholas Schorsch purchased 50,000 shares on March 4, and currently holds 50,000 shares or 0.4% of the company. Nicholas Schorsch serves as Chairman and Chief Executive Officer of American Realty Capital Properties.
  • William Kahane purchased 50,000 shares on March 4, and currently holds 50,000 shares or 0.4% of the company. William Kahane has served as a director of American Realty Capital Properties since February 2013.

Insider buying by calendar month

Here is a table of American Realty Capital Properties' insider trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
March 2013 109,800 0
February 2013 0 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 March 2013 has seen all of the insider buying.

Financials

The company reported the full-year 2012 financial results on February 28, with the following highlights:

Revenue $16.8 million
Funds From Operations [FFO] $5.2 million
Net loss $7.3 million
Cash $2.7 million
Debt $160.4 million
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Competition

The company is subject to competition in the acquisition of properties and intense competition in the leasing of its properties. The company competes with a number of developers, owners and operators of retail, industrial and office real estate. The company also may face new competitors and, due to its focus on single tenant properties located throughout the United States, and because many of its competitors are locally or regionally focused, the company will not encounter the same competitors in each region of the United States.

My analysis

There have been four different insiders buying and there have not been any insiders selling the shares during the past 30 days. The company has a book value of $7.89 per share and the stock has a dividend yield of 6.72%. The 200 day moving average is currently at $12.19, which could be a good entry point for the stock.

3. MBT Financial Corp. (NASDAQ:MBTF) operates as the holding company for Monroe Bank & Trust that provides retail and commercial banking, and trust services in Michigan.

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Insider buying by insider (last 30 days)

  • Peter Carlton purchased 13,775 shares on March 1, pursuant to a private placement. Peter Carlton currently holds 147,900 shares or 0.9% of the company. Peter Carlton serves as a director of the company.
  • John Skibski purchased 1,000 shares on March 1, pursuant to a private placement. John Skibski currently holds 32,600 shares or 0.2% of the company. John Skibski is Executive Vice President, Chief Financial Officer.
  • Debra Shah purchased 3,000 shares on March 1, pursuant to a private placement. Debra Shah currently holds 73,000 shares or 0.4% of the company. Debra Shah serves as a director of the company.
  • Thomas Myers purchased 8,265 shares on March 1, pursuant to a private placement. Thomas Myers currently holds 76,125 shares or 0.4% of the company. Thomas Myers is Executive Vice President, Chief Lending Manager.
  • Michael Miller purchased 20,000 shares on March 1, pursuant to a private placement. Michael Miller currently holds 125,125 shares or 0.7% of the company. Michael Miller is Chairman of the Board.
  • Karen Wilson purchased 6,887 shares on March 1, pursuant to a private placement. Karen Wilson currently holds 73,746 shares or 0.4% of the company. Karen Wilson serves as a director of the company.
  • Scott McKelvey purchased 3,000 shares on March 1, pursuant to a private placement. Scott McKelvey currently holds 30,860 shares or 0.2% of the company. Scott McKelvey is Executive Vice President, Senior Wealth Management Officer.

Insider buying by calendar month

Here is a table of MBT Financial's insider trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
March 2013 55,927 0
February 2013 0 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 March 2013 has seen the most insider buying.

Financials

The company reported the revised full-year 2012 financial results on February 13, with the following highlights:

Net income $8.5 million
Book value $4.80 per share
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Competition

MBT Financial's competitors include Bank of America Corporation (NYSE:BAC), Comerica Incorporated (NYSE:CMA) and Fifth Third Bancorp (NASDAQ:FITB). Here is a table comparing these companies.

Company MBTF BAC CMA FITB Industry Average (Regional - Northeast Banks)
Market Cap: 65.24M 124.97B 6.54B 14.02B N/A
Employees: 357 N/A 8,628 20,798 180.00
Qtrly Rev Growth (yoy): -0.21 -0.21 0.01 0.20 0.00
Revenue: 43.74M 75.16B 2.47B 6.36B N/A
Operating Margin: 0.24 0.11 0.34 0.40 0.33
Net Income: 8.48M 2.76B 515.00M 1.53B N/A
EPS: 0.49 0.25 2.67 1.66 2.80
P/E: 7.67 46.20 13.04 9.67 N/A
PEG (5 yr expected): N/A 0.62 1.69 2.34 N/A
P/S: 1.49 1.66 2.65 2.21 N/A
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MBT Financial's valuation looks attractive compared to its peers.

My analysis

The stock has a $7 price target from the Point and Figure chart. There have been seven 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 7.67. The stock could be a good pick below the book value of $4.80 per share based on the intensive insider buying.

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