Seeking Alpha
Long/short equity, insider ownership
Profile| Send Message|
( followers)  

Since my December 13, 2012, article titled "5 Stocks With Recent Intensive Insider Buying", the stocks that I featured have performed as follows:

CompanyPrice 12/12Price 3/8Change
HTA$9.88$11.71+18.5%
WMC$20.66$21.95+6.2%
GLUU$2.46$2.35-4.5%
NTLS$13.36$12.81-4.1%
MBLX$1.69$2.45+45.0%

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. Kayne Anderson MLP Investment Company (NYSE:KYN) is a closed ended equity mutual fund launched and managed by KA Fund Advisors, LLC.

(click to enlarge)

Insider buying by insider (last 30 days)

  • John Frey purchased 15,160 shares on March 7 pursuant to a public offering. John Frey currently holds 37,240 shares or less than 0.1% of the company. John Frey is Executive Vice President, Assistant Secretary and Assistant Treasurer.
  • Jody Meraz purchased 1,000 shares on March 7 pursuant to a public offering. Jody Meraz currently holds 3,711 shares or less than 0.1% of the company. Jody Meraz is a Vice President of KYN.
  • James Baker purchased 10,000 shares on March 7 pursuant to a public offering. James Baker currently holds 37,677 shares or less than 0.1% of the company. James Baker serves as Executive Vice President of KYN.

Insider buying by calendar month

Here is a table of Kayne Anderson's insider trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
March 201326,1600
February 201300
January 201300
December 201200
November 201200
October 201200
September 201200
August 201200
July 201200
June 201200
May 20121200
April 201200
March 201200
February 201200

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

Financials

The company's net asset value was $31.27 per share as of March 7.

Outlook

The company's outlook for 2013 is very positive. The company expects that distribution growth in the 6% to 7% range will lead to another year of low double-digit total returns for the MLP sector. Continued development of unconventional reserves will create plentiful growth opportunities for the sector, and the company believes there is good visibility for distribution growth for an extended period of time given the long-term investments required to develop these reserves. That outlook, coupled with MLPs' attractive yields (both on an absolute and relative basis) and a historically low interest rate environment reinforces the company's belief that MLPs remain an attractive investment.

My analysis

There have been three different insiders buying the shares and there have not been any insiders selling the shares during the last 30 days. There are three analyst buy ratings, zero neutral ratings and zero sell ratings for the stock currently. The stock is trading at a P/E ratio of 10.87 and a forward P/E ratio of 10.14. The stock has a dividend yield of 6.59%. I have a cautiously bullish bias for the stock currently based on the intensive insider buying.

2. Natural Resource Partners L.P. (NYSE:NRP) engages in the ownership and management of coal properties in Appalachia, the Illinois Basin, and the western United States, as well as lignite reserves in the Gulf Coast region.

(click to enlarge)3.

Insider buying by insider (last 30 days)

  • Kenneth Hudson purchased 4,000 shares on March 7 and currently holds 8,000 shares or less than 0.1% of the company. Kenneth Hudson has served as the Controller of GP Natural Resource Partners since 2002.
  • Robert Blakely purchased 22,500 shares on February 28 - March 1 and currently holds 22,500 shares or less than 0.1% of the company. Robert Blakely serves as a director of the company.
  • Kevin Craig purchased 1,000 shares on February 25 and currently holds 10,000 shares or less than 0.1% of the company. Kevin Craig is the Vice President of Business Development for GP Natural Resource Partners.

Insider buying by calendar month

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

MonthInsider buying / sharesInsider selling / shares
March 201314,5000
February 201313,0000
January 2013756,9140
December 201200
November 201200
October 201200
September 201200
August 20123,0000
July 201200
June 20124,0000
May 201200
April 201200
March 20124,0000
February 201200

There have been 795,414 shares purchased and zero shares sold since February 2012.

Financials

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

Revenue$379.1 million
Net income$213.4 million
Cash$149.4 million
Debt$984.2 million

Outlook

The company's guidance for 2013 is as follows:

Revenue$330-$375 million
Distributable cash flow$250-$280 million
Net income per unit$1.60 - $1.80

Competition

Natural Resource Partners' competitors include Cloud Peak Energy (NYSE:CLD), CONSOL Energy (NYSE:CNX) and Peabody Energy (NYSE:BTU). Here is a table comparing these companies.

CompanyNRPCLDCNXBTUIndustry Average (Industrial Metals & Minerals)
Market Cap:2.43B1.05B7.33B5.93B151.23M
Employees:N/A1,7008,8968,200239.00
Qtrly Rev Growth (yoy):0.05-0.07-0.13-0.100.48
Revenue:365.57M1.52B5.05B8.08B10.34B
Gross Margin :0.990.250.290.270.26
EBITDA :314.38M349.63M960.96M906.90M-737.47K
Operating Margin :0.690.160.070.03-0.01
Net Income :209.09M173.72M388.47M-481.50MN/A
EPS :1.972.851.70-2.19N/A
P/E :11.216.1118.89N/A21.74
PEG (5 yr expected):12.945.382.47-2.75N/A
P/S:6.610.681.420.733.32

Natural Resource Partners' P/E ratio is below the industry average, which could explain some of the insider buying.

My analysis

The stock has a $35.5 price target from the Point and Figure chart. There have been three different insiders buying the shares and there have not been any insiders selling the shares during the last 30 days. There are four analyst buy ratings, three neutral ratings and zero sell ratings with an average target price of $26.00. The stock is trading at a P/E ratio of 11.21 and a forward P/E ratio of 12.08. The company has a book value of $5.79 per share and the stock has a dividend yield of 9.95%. I have a cautiously bullish bias for the stock currently based on the intensive insider buying.

3. First PacTrust Bancorp (NYSE:BANC) operates as a holding company for Pacific Trust Bank that provides retail banking services.

(click to enlarge)

Insider buying by insider (last 30 days)

  • James Gray purchased 1,000 shares on March 6 and currently holds 3,800 shares or less than 0.1% of the company. James Gray serves as a director of the company.
  • Robb Evans purchased 10,000 shares on March 6 and currently holds 10,000 shares or less than 0.1% of the company. Robb Evans serves as a director of the company.
  • Timothy Chrisman purchased 6,300 shares on March 5 and currently holds 8,187 shares or less than 0.1% of the company. Timothy Chrisman serves as a director of the company.
  • Jeffrey Seabold purchased 2,500 shares on March 7 and currently holds 2,500 shares or less than 0.1% of the company. Jeffrey Seabold serves as a director of the company.
  • Steven Sugarman purchased 10,057 shares on March 7 and currently holds 48,778 shares or 0.4% of the company. Steven Sugarman is the Chief Executive Officer and Director of First PacTrust Bancorp.
  • Jeff Karish purchased 2,000 shares on March 5-6 and currently holds 5,685 shares or less than 0.1% of the company. Jeff Karish serves as a director of the company.

Insider buying by calendar month

Here is a table of First PacTrust Bancorp's insider trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
March 201331,8570
February 201300
January 201300
December 201200
November 201200
October 201200
September 201200
August 20120417,287
July 201200
June 201200
May 201200
April 201200
March 201200
February 201200

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

Financials

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

Net income$4.6 million
Cash$113.7 million
Debt$159.9 million

Competition

First PacTrust Bancorp's competitors include Bank of America (NYSE:BAC), JPMorgan Chase & Co. (NYSE:JPM). and U.S. Bancorp (NYSE:USB). Here is a table comparing these companies.

CompanyBANCBACJPMUSBIndustry Average (Regional - Pacific Banks)
Market Cap:136.16M130.60B190.93B63.78B100.02M
Employees:N/AN/A258,96564,486346.00
Qtrly Rev Growth (yoy):6.04-0.210.190.050.15
Revenue:77.67M75.16B91.66B17.61B60.01M
Operating Margin :0.080.110.360.450.33
Net Income :4.64M2.76B19.88B5.38BN/A
EPS :0.400.255.202.841.05
P/E :28.6248.289.6512.0512.88
PEG (5 yr expected):1.030.651.331.151.50
P/S :1.741.762.103.612.55

First PacTrust Bancorp is trading below the industry average P/S ratio, which could explain some of the insider buying.

My analysis

The stock has a $18 price target from the Point and Figure chart. There have been six different insiders buying the shares and there have not been any insiders selling the shares during the last 30 days. The stock is trading at a P/E ratio of 28.62 and a forward P/E ratio of 9.46. The company has a book value of $15.87 per share and the stock has a dividend yield of 4.19%. I believe 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 BANC 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.

Source: 3 Stocks With Recent Intensive Insider Buying