1 Bank, 1 Electric Utility And 1 Gold Stock With Recent Intensive Insider Buying

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 |  Includes: AAU, FCEL, OZRK
by: Markus Aarnio

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

Company

Price 1/3

Price 4/24

Change

Compass Diversified Holdings (NYSE:CODI)

$15.03

$16.55

+10.1%

Markel Corporation (NYSE:MKL)

$439.99

$517.85

+17.7%

Palatin Technologies (NYSEMKT:PTN)

$0.63

$0.60

-4.8%

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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. FuelCell Energy (NASDAQ:FCEL) designs, manufactures, sells, installs, operates, and services stationary fuel cell power plants for distributed baseload power generation.

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Insider buying by insider (last 30 days)

  • Richard Bromley purchased 20,000 shares on April 23 and currently holds 49,787 shares or less than 0.1% of the company. Richard Bromley serves as a director of the company.
  • John Rolls purchased 200,000 shares on April 18 and currently holds 868,000 shares or 0.5% of the company. John Rolls was appointed Chairman of the Board of Directors in March 2011.
  • James Gerson purchased 100,000 shares on April 18 and currently holds 1,125,989 shares or 0.6% of the company. James Gerson serves as a director of the company.
  • Arthur Bottone purchased 10,000 shares on April 18 and currently holds 936,168 shares or 0.5% of the company. Arthur Bottone joined FuelCell Energy in February 2010 as Senior Vice President and Chief Commercial Officer and was promoted to President and Chief Executive Officer in February 2011.
  • Michael Bishop purchased 1,500 shares on April 18 and currently holds 448,231 shares or 0.2% of the company. Michael Bishop was appointed Vice President, Chief Financial Officer, Corporate Secretary, and Treasurer in June 2011.

Insider buying by calendar month

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

Month Insider buying / shares Insider selling / shares
April 2013 331,500 0
March 2013 0 0
February 2013 0 0
January 2013 65,000 0
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The month of April has seen the most insider buying this year.

Financials

The company reported the firsrt-quarter, which ended January 31, financial results on March 11 with the following highlights:

Revenue $36.4 million
Net loss $12.5 million
Cash $86.3 million
Debt $26.9 million
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Outlook

Backlog totaled $428.1 million at January 31, 2013 compared to $318.9 million at October 31, 2012.

The company expects to report revenues for its second fiscal quarter ended April 30, 2013 in the range of $38 million to $40 million. This compares favorably to total revenues of $36.4 million reported for the quarter ended January 31, 2013 and $24.2 million reported for the quarter ended April 30, 2012.

Competition

FuelCell's competitors include Ballard Power Systems (NASDAQ:BLDP) and Cummins (NYSE:CMI). Here is a table comparing these three companies.

Company FCEL BLDP CMI
Market Cap: 187.60M 84.65M 20.24B
Employees: 575 395 46,000
Qtrly Rev Growth (yoy): 0.16 N/A -0.13
Revenue: 125.62M 43.69M 17.33B
Gross Margin: -0.03 0.17 0.26
EBITDA: -32.90M -22.84M 2.29B
Operating Margin: -0.30 -0.66 0.11
Net Income: -44.43M -42.07M 1.64B
EPS: -0.25 -0.48 8.67
P/E: N/A N/A 12.40
PEG (5 yr expected): -0.53 N/A 1.27
P/S: 1.49 1.94 1.17
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FuelCell's valuation is in line with its competitors.

My analysis

There have been five 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, one neutral rating and zero sell ratings, with an average target price of $2.06. The company has a book value of $0.34 per share. I have a cautiously bullish bias for the stock currently based on the intensive insider buying.

2. Bank of the Ozarks (NASDAQ:OZRK) provides various retail and commercial banking services.

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Insider buying by insider (last 30 days)

  • Jean Arehart purchased 1,000 shares on April 19 and currently holds 16,200 shares or less than 0.1% of the company. Jean Arehart serves as a director of the company.
  • Nicholas Brown purchased 700 shares on April 16 and currently holds 700 shares or less than 0.1% of the company. Nicholas Brown serves as a director of the company.
  • John Reynolds purchased 655 shares on April 16 and currently holds 6,155 shares or less than 0.1% of the company. John Reynolds serves as a director of the company.

Insider buying by calendar month

Here is a table of Bank of the Ozarks' insider trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
April 2013 2,355 0
March 2013 0 0
February 2013 0 81,404
January 2013 0 12,689
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The month of April has seen the most insider buying this year.

Financials

The company reported the first-quarter financial results on April 11 with the following highlights:

Net income $20.0 million
Book value $14.81 per share
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Competition

Bank of the Ozarks' competitors include Bank of America (NYSE:BAC) and Regions Financial (NYSE:RF). Here is a table comparing these companies.

Company OZRK BAC RF
Market Cap: 1.45B 130.63B 11.32B
Employees: 1,120 267,000 N/A
Qtrly Rev Growth (yoy): 0.06 0.17 0.30
Revenue: 226.26M 77.09B 5.17B
Operating Margin: 0.49 0.15 0.32
Net Income: 79.04M 4.68B 1.05B
EPS: 2.25 0.42 0.72
P/E: 18.20 28.60 11.17
PEG (5 yr expected): 2.10 0.54 1.50
P/S: 6.40 1.69 2.19
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Bank of the Ozarks is trading at a higher P/S ratio than its competitors.

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 is one analyst buy rating, eight neutral ratings and zero sell ratings, with an average target price of $41.86. The stock is trading at a P/E ratio of 18.20 and a forward P/E ratio of 15.63. The stock has a dividend yield of 1.66% and the stock has an insider ownership of 4.07%. I have a neutral bias for the stock currently based on the analyst target prices.

3. Almaden Minerals (NYSEMKT:AAU) engages in the acquisition, exploration, and development of mineral properties in Canada, the United States, and Mexico.

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Insider buying by insider (last 30 days)

  • Dione Bitzer purchased 5,000 shares on April 18 and currently holds 37,200 shares or less than 0.1% of the company. Dione Bitzer is Controller, Secretary.
  • Duane Poliquin purchased 21,700 shares on April 3-15 and currently holds 2,226,837 shares or 3.7% of the company. Duane Poliquin is Founder & Chairman of the company.
  • Barry Smee purchased 10,000 shares on April 22 and currently holds 60,000 shares or 0.1% of the company. Barry Smee serves as a director of the company.

Insider buying by calendar month

Here is a table of Almaden Minerals' insider trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
April 2013 36,700 0
March 2013 11,000 0
February 2013 122,600 0
January 2013 0 0
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There have been 170,300 shares purchased and zero shares sold this year.

Financials

The company reported the full year 2012 financial results on March 28 with the following highlights:

Revenue $299,167
Net loss $10.2 million
Cash $18.7 million
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Outlook

Almaden has sufficient cash on hand to conduct its exploration and development plans for the fiscal year. Almaden has set significant milestones including the following:

Mexican projects:

  • Ixtaca - Having announced the resource calculation and metallurgical results in late January 2013, the company continues to drill as part of its on-going exploration drill program with the objective of expanding the resource and seeking new zones of mineralization elsewhere on the property.
  • El Cobre - The company has planned a 5,000-meter exploration drill program and this is now underway.
  • Others - The company is advancing a regional pipeline of projects along trends identified from the company's extensive past exploration programs.

Nevada, USA projects:

  • Willow - a first stage drill program is planned to test both a high sulphidation epithermal gold target and a porphyry copper-gold target. This will depend on availability of personnel and budgets.

Canadian projects:

  • Merit - drilling is expected in 2013.

Competition

There is competition from other mining exploration companies with operations similar to those of Almaden's. Many of the mining companies with which Almaden competes have operations and financial strength many times greater than that of Almaden. Such competitors could outbid Almaden for such projects, equipment or personnel, or produce minerals at a lower cost which would have a negative effect on Almaden's operations and financial condition.

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. The stock has an insider ownership of 5.36%. The company's mineral resources are 3.6 million gold ounces. Almaden has enough cash for this year's exploration program. I have a cautiously bullish bias for the stock currently based on the intensive insider buying.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within 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.