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There was intensive insider buying in Global Geophysical Services (GGS) in February, when the stock was trading around $2.50. The stock is currently trading at $4.01 or 113% above the low made in April.

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With this episode in mind, I screened for stocks which have seen recent intensive insider buying. 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%.

In this article I will feature three stocks that have seen intensive insider buying during the last 30 days.

1. Brookfield Infrastructure Partners L.P. (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 39 shares on May 16, pursuant to a purchase/ownership plan. David Hamill currently holds 3,745 shares or less than 0.1% of the company. David Hamill serves as a director of the company.
  • Arthur Jacobson purchased 4,000 shares on June 6, and currently holds 14,000 shares or less than 0.1% of the company. Arthur Jacobson serves as a director of the company.
  • Derek Pannell purchased 1,200 shares on May 13, and currently holds 22,320 shares or less than 0.1% of the company. Derek Pannell is Chairman of the Board.
  • Danesh Varma purchased 391 shares on May 15, pursuant to a purchase/ownership plan. Danesh Varma currently holds 772 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.

MonthInsider buying / sharesInsider selling / shares
June 20134,0000
May 20131,6300
April 201300
March 201300
February 20134,6200
January 201300

There have been 10,250 shares purchased and zero shares sold by the insiders this year.

Financials

The company reported the first-quarter financial results on May 2, with the following highlights:

Funds From Operations [FFO]$160 million
Net loss$28 million
Net debt$7.7 billion

Outlook

The company expects the level of organic growth within its business will accelerate with the global economic recovery that is under way and the company believes that these organic growth initiatives will support its 3% to 7% target distribution growth. The company also believes that it can meaningfully add to its growth through acquisitions.

Competition

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

CompanyBIPIndustry Average (Electric Utilities)
Market Cap:5.13B25.86B
Employees:N/A9.47K
Qtrly Rev Growth (yoy):0.360.17
Revenue:2.16B20.92B
Gross Margin:0.460.37
EBITDA:900.00M5.08B
Operating Margin:0.290.14
Net Income:45.00MN/A
EPS:0.321.26
P/E:110.9319.86
PEG (5 yr expected):8.510.77
P/S:2.371.14

Brookfield Infrastructure Partners is growing faster than the industry.

My analysis

There have been four different insiders buying the shares and there have not been any insiders selling the shares during the last 30 days. The company has an insider ownership of 4.71%. There are four analyst buy ratings, four neutral ratings and zero sell ratings with an average target price of $40.71. The stock is trading at a P/E ratio of 110.93 and a forward P/E ratio of 33.38. The company has a book value of $25.28 per share and the stock has a dividend yield of 4.82%. I have a cautiously bullish bias for the stock currently based on the intensive insider buying.

2. Iron Mountain Incorporated (IRM) provides information management services primarily in North America, Europe, Latin America, and the Asia Pacific.

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Insider buying by insider (last 30 days)

  • William Meaney purchased 12,000 shares on June 7, and currently holds 12,000 shares or less than 0.1% of the company. William Meaney is president and CEO of Iron Mountain and serves as a director on the company's board.
  • Arthur Little purchased 1,800 shares on June 7, and currently controls 5,640 shares or less than 0.1% of the company. Arthur Little has been a director since November 1995.
  • Ted Antenucci purchased 5,800 shares on June 7, and currently holds 8,968 shares or less than 0.1% of the company. Ted Antenucci has been a director since June 2011.
  • Brian McKeon purchased 3,600 shares on June 7, and currently holds 10,991 shares or less than 0.1% of the company. Brian McKeon joined Iron Mountain as chief financial officer in April 2007.

Insider buying by calendar month

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

MonthInsider buying / sharesInsider selling / shares
June 201323,2000
May 201300
April 201300
March 201300
February 201301,406,213
January 201309,246

The month of June has seen all of the insider buying this year.

Financials

The company reported the first-quarter financial results on May 1, with the following highlights:

Revenue$747 million
Net income$18 million
Cash$230.0 million
Debt$3.8 billion

Outlook

The company's full year 2013 guidance is as follows:

Revenue3,020 - 3,100 million
Adjusted EPS$1.13-$1.24

Competition

Iron Mountain's competitors include Anacomp Inc. (ANCPA.PK) and Cintas Corporation (CTAS). Here is a table comparing these companies.

CompanyIRMANCPACTASIndustry Average (Business Software & Services)
Market Cap:5.43B6.84M5.61B55.16M
Employees:17,500N/A30,000193.00
Qtrly Rev Growth (yoy):0.000.040.060.00
Revenue:3.01B153.25M4.24B71.50M
Gross Margin:0.570.290.420.24
EBITDA:873.82M3.86M735.16M1.00M
Operating Margin:0.18-0.040.130.08
Net Income:137.13M-11.12M305.37MN/A
EPS:0.76-3.012.420.27
P/E:37.45N/A18.9112.87
PEG (5 yr expected):1.82N/A1.82N/A
P/S:1.810.041.322.55

Iron Mountain is trading below the industry average P/S ratio, which could explain some of the insider buying.

My analysis

There have been four different insiders buying the shares and there have not been any insiders selling the shares during the last 30 days. The company has an insider ownership of 0.25%. There are six analyst buy ratings, four neutral ratings and zero sell ratings with an average target price of $41.58. The stock is trading at a P/E ratio of 37.45 and a forward P/E ratio of 20.50. The company has a book value of $5.84 per share and the stock has a dividend yield of 3.79%. The stock plunged on June 7, after the U.S. Internal Revenue Service scrutinized the company's eligibility to convert to a real estate investment trust. The insiders started buying only after the news. I have a cautiously bullish bias for the stock currently based on the intensive insider buying.

3. K-Bro Linen Inc. (OTC:KBRLF) offers laundry and linen services in Canada.

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Insider buying by insider (last 30 days)

  • Jerzy Ostrzyzek purchased 280 shares on June 6, pursuant to a purchase/ownership plan. Jerzy Ostrzyzek currently holds 11,483 shares or 0.2% of the company. Jerzy Ostrzyzek is General Manager (Toronto).
  • Christopher Burrows purchased 3,539 shares on June 6, pursuant to a purchase/ownership plan. Christopher Burrows currently holds 5,537 shares or less than 0.1% of the company. Christopher Burrows is Vice President & Chief Financial Officer.
  • Sean Curtis purchased 1,745 shares on June 6, pursuant to a purchase/ownership plan. Sean Curtis currently holds 79,986 shares or 1.1% of the company. Sean Curtis is Senior Vice President & General Manager (Edmonton).
  • Jeffrey Gannon purchased 494 shares on June 6, pursuant to a purchase/ownership plan. Jeffrey Gannon currently holds 9,686 shares or 0.1% of the company. Jeffrey Gannon is General Manager (Calgary).
  • Ronald Graham purchased 583 shares on June 6, pursuant to a purchase/ownership plan. Ronald Graham currently holds 18,415 shares or 0.3% of the company. Ronald Graham is General Manager (Vancouver).
  • Matthew Hills purchased 1,040 shares on June 6, pursuant to a purchase/ownership plan. Matthew Hills currently holds 6,388 shares or 0.1% of the company. Matthew Hills serves as a director of the company.
  • Steven Matyas purchased 1,040 shares on June 6, pursuant to a purchase/ownership plan. Steven Matyas currently holds 6,388 shares or 0.1% of the company. Steven Matyas serves as a director of the company.
  • Linda McCurdy purchased 3,274 shares on June 6, pursuant to a purchase/ownership plan. Linda McCurdy currently holds 104,918 shares or 1.5% of the company. Linda McCurdy joined K-Bro in May 1998 as Chief Financial Officer and became President & Chief Executive Officer in January 2000.
  • Michael Percy purchased 1,040 shares on June 6, pursuant to a purchase/ownership plan. Michael Percy currently holds 2,063 shares or less than 0.1% of the company. Michael Percy serves as a director of the company.
  • Ross Smith purchased 1,040 shares on June 7, pursuant to a purchase/ownership plan. Ross Smith currently holds 4,178 shares or less than 0.1% of the company. Ross Smith serves as a director of the company.

Insider buying by calendar month

Here is a table of K-Bro Linen's insider trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
June 201314,0750
May 201300
April 201300
March 2013023,100
February 201300
January 201300

The month of June has seen all of the insider buying this year.

Financials

The company reported the first-quarter financial results on May 9, with the following highlights:

Revenue$31.6 million
Net income$2.8 million
Net debt$5.2 million

Outlook

The company is focused on completing and transitioning into its new Edmonton facility and growing the business in this geographic area with the expanded capacity.

Competition

K-Bro operates in a competitive industry and competes with national, regional and local providers. Service, price, quality and convenience to the customer are the competitive elements in this industry. If existing or future competitors seek to gain or retain market share by reducing prices, K-Bro may be required to lower prices, which would hurt its results of operation. K-Bro's competitors may also compete with K-Bro for acquisition candidates, which can increase the price for acquisitions and reduce the number of available acquisition candidates. In addition, K-Bro's customers and prospects may decide to perform certain services inhouse instead of outsourcing these services to K-Bro. These competitive pressures could adversely affect K-Bro's sales and consolidated results of operation.

My analysis

There have been 10 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 19.80 and the company has a book value of $10.05 per share. The company pays a monthly dividend of 9.58 cents CDN per common share, which gives the stock a dividend yield of 3.38%. The 200 -day moving average is currently at $30.06, which could be a good entry point for the stock.

Source: 1 Tech, 1 Utilities And 1 Consumer Goods Company With Recent Intensive Insider Buying