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There was intensive insider buying in FuelCell Energy (NASDAQ:FCEL) in April, when the stock was trading below $1. The stock is currently trading at $1.41 or 67.9% 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 two stocks that have seen intensive insider buying during the last 30 days.

1. Novavax (NASDAQ:NVAX), a clinical-stage biopharmaceutical company, focuses on developing recombinant protein nanoparticle vaccines to address a range of infectious diseases.

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Insider buying by insider (last 30 days)

  • Timothy Hahn purchased 21,000 shares on June 10 and currently holds 71,000 shares or less than 0.1% of the company. Dr. Hahn is Senior Vice President, Manufacturing and Process Development.
  • Gregory Glenn purchased 2,000 shares on June 6-7 and currently holds 31,000 shares or less than 0.1% of the company. Dr. Glenn is Senior Vice President, Chief Medical Officer of the company.
  • James Young purchased 100,000 shares on June 6 and currently holds 400,000 shares or 0.3% of the company. James Young joined Novavax's Board of Directors in April 2010 and was appointed Chairman in April 2011.

Insider buying by calendar month

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

MonthInsider buying / sharesInsider selling / shares
June 2013123,0000
May 201300
April 2013079,000
March 2013100,0000
February 201300
January 201300

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

Financials

The company reported the first-quarter financial results on May 7 with the following highlights:

Revenue$3.8 million
Net loss$10.0 million
Cash$45.4 million
Debt$2.0 million

Upcoming milestones

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Competition

The biopharmaceutical industry and the vaccine market are intensely competitive and are characterized by rapid technological progress. Novavax's technology is based upon utilizing the baculovirus expression system in insect cells to make VLPs and recombinant protein micelle vaccines. Novavax believes this system offers many advantages when compared to other technologies and is uniquely suited for developing seasonal and pandemic influenza vaccines, as well as other infectious diseases, including Novavax's vaccine candidate against RSV.

There are a number of companies developing and selling vaccines for seasonal and pandemic influenza employing historic vaccine technology, as well as new technologies. The table below provides a list of major vaccine competitors and corresponding licensed influenza vaccine technologies.

CompanyCompeting Technology Description
Sanofi Pasteur, SA (NYSE:SNY)Inactivated sub-unit (egg-based)
MedImmune, LLC (a subsidiary of AstraZeneca PLC (NYSE:AZN))Nasal, live attenuated (egg-based)
GlaxoSmithKline plc (NYSE:GSK)Inactivated split-vaccine (egg-based)
Novartis, Inc. (NYSE:NVS)Inactivated sub-unit (cell and egg-based)
Merck & Co., Inc. (NYSE:MRK)Inactivated sub-unit (egg-based)
Protein Sciences CorporationRecombinant HA trivalent (insect cell-based)

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 company has insider ownership of 0.66%. There are seven analyst buy ratings, zero neutral ratings and zero sell ratings with an average target price of $4.21. The company will announce data from a Phase 1 RSV trial in elderly patients this month. I currently have a long position in the stock.

2. S&W Seed Company (NASDAQ:SANW) engages in breeding, growing, processing, and selling agricultural commodities.

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Insider buying by insider (last 30 days)

  • Mick Fleming purchased 1,000 shares on June 7 and currently holds 1,000 shares or less than 0.1% of the company. Mick Fleming serves as a director of the company.
  • Mark Grewal purchased 13,000 shares on May 16-30 and currently holds 54,465 shares or 0.5% of the company. Mark Grewal was appointed President, Chief Executive Officer and a Director in October 2009.
  • Michael Nordstrom purchased 452 shares on May 20 and currently holds 4,452 shares or less than 0.1% of the company. Michael Nordstrom serves as a director of the company.

Insider buying by calendar month

Here is a table of S&W Seed Company's insider trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
June 20131,0000
May 201313,4520
April 201300
March 201300
February 201300
January 201300

The month of May has seen the most insider buying this year.

Financials

The company reported the fiscal 2013 third-quarter, which ended March 31, financial results on May 13 with the following highlights:

Revenue$4.2 million
Net loss$1.9 million
Cash$14.1 million
Debt$3.1 million

Outlook

The company expects revenues for the fourth quarter of fiscal 2013 to be between $12 and $13 million, compared to the prior year's fourth quarter of $0.8 million.

Competition

S&W Seed Company's principal competitors in its alfalfa seed business are Forage Genetics International (a subsidiary of Land O' Lakes, Inc.), Cal/West Seeds (a cooperative of seed growers), Dairyland Seed Co., Inc. (owned by Dow AgroSciences LLC, a wholly-owned subsidiary of The Dow Chemical Company (NYSE:DOW)), Imperial Valley Milling, Top Notch Corporation, Seed Services and Pioneer Seed Company (a Dupont (NYSE:DD) business).

S&W Seed Company believes that the key competitive drivers in the industry are proven performance, customer support in the field and value, which takes into account not simply the price of the seed but also yield in the field. In addition, S&W Seed Company believes that its strong personal relationships with growers in the San Joaquin Valley and its reputation for breeding and producing high quality varieties of alfalfa seed that manifest the traits the farmers need to combine to give it a competitive advantage in the niche market for high salt- and heat-tolerant, non-dormant alfalfa seed.

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 company has an insider ownership of 13.24%. There are three analyst buy ratings, zero neutral ratings and zero sell ratings, with an average target price of $15.41. The stock is trading at a forward P/E ratio of 48.89 and the company has a book value of $3.96 per share. The 200 -day moving average is currently at $8.13, which could be a good entry point for the stock.

Disclosure: I am long NVAX. 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: 1 Biotech And 1 Consumer Goods Company With Recent Intensive Insider Buying