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There was intensive insider buying in ValueVision Media (NASDAQ:VVTV) when the stock was trading below $2. The stock is currently trading at $5.09 or 214% above the low made in December 2012.

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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. NuStar Energy L.P. (NYSE:NS) engages in the terminalling, storage, and transportation of petroleum products primarily in the United States and the Netherlands.

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Insider buying by insider (last 30 days)

  • William Rosier purchased 2,000 shares on June 24 and currently controls 15,398 shares or less than 0.1% of the company. William Rosier serves as a director of the company.
  • Dan Hill purchased 2,500 shares on June 24 and currently controls 17,277 shares or less than 0.1% of the company. Dan Hill serves as a director of the company.
  • Jesse Bates purchased 1,000 shares on May 30 and currently controls 18,685 shares or less than 0.1% of the company. Jesse Bates serves as a director of the company.

Insider buying by calendar month

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

MonthInsider buying / sharesInsider selling / shares
June 20134,5000
May 20132,0000
April 201360,0000
March 201386,0000
February 201300
January 201300

There have been 152,500 shares purchased and zero shares sold by the insiders this year.

Financials

The company reported the first-quarter financial results on April 24 with the following highlights:

Revenue$999.7 million
Net income$13.3 million
Cash$116.5 million
Debt$2.4 billion

Outlook

The company expects the EBITDA results for all three of its segments to be higher than last year. The company's pipeline segment should benefit from the company's Eagle Ford Shale region internal growth pipeline projects completed in 2012 and later in 2013 as well as from the crude oil assets acquired from TexStar. The storage segment is projected to benefit from the completion of the two rail car offloading projects at the company's St. James, Louisiana terminal and the recent completion of the storage expansion projects at the company's St. Eustatius terminal and St. James, Louisiana terminal. The company's fuels marketing segment's 2013 results should improve over the remainder of 2013 and as compared to 2012, primarily due to higher earnings in the bunkering and heavy fuel oil operations.

These higher 2013 segment results should also lead to higher distributable cash flow and an improved coverage ratio for the year.

NuStar expects to spend $400 million to $425 million on internal growth projects during 2013, primarily on projects in the Eagle Ford Shale, while the company's reliability capital spending should be in the range of $35 million to $45 million.

Competition

Because pipelines are generally the lowest-cost method for intermediate and long-haul movement of refined petroleum products, NuStar's more significant competitors are common carrier and proprietary pipelines owned and operated by major integrated and large independent oil companies and other companies in the areas where NuStar delivers products. Competition between common carrier pipelines is based primarily on transportation charges, quality of customer service and proximity to end users. NuStar believes high capital costs, tariff regulation, environmental considerations and problems in acquiring rights-of-way make it unlikely that other competing pipeline systems comparable in size and scope to NuStar's pipelines will be built in the near future, as long as NuStar's pipelines have available capacity to satisfy demand and tariffs remain at economically reasonable levels.

My analysis

There have been three different insiders buying the shares and there have not been any insiders selling the shares during the past 30 days. The company has an insider ownership of 3.10%. There are zero analyst buy ratings, nine neutral ratings and four sell ratings with an average target price of $49.89. The stock is trading at a forward P/E ratio of 18.60. The company has a book value of $31.34 per share and the stock has a dividend yield of 9.82%. I believe the stock could be a good pick at the book value.

2. Student Transportation (NASDAQ:STB) provides school bus transportation and management services to public and private schools in North America.

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Insider buying by insider (last 30 days)

  • Robert Byrne purchased 7,000 shares on June 24 and currently controls 27,010 shares or less than 0.1% of the company. Robert Byrne is a senior officer of the company.
  • David Scopelliti purchased 1,500 shares on June 20 and currently holds 9,206 shares or less than 0.1% of the company. David Scopelliti serves as a director of the company.
  • SNCF Participations, S.A. purchased 93,205 shares on June 17 pursuant to a purchase/ownership plan. SNCF Participations, S.A. currently holds 12,676,432 shares or 15.6% of Student Transportation.

Insider buying by calendar month

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

MonthInsider buying / sharesInsider selling / shares
June 2013101,7050
May 2013101,3610
April 2013121,8620
March 2013124,9820
February 201388,8260
January 201389,5260

There have been 628,262 shares purchased and zero shares sold by the insiders this year.

Financials

The company reported the fiscal 2013 third-quarter, which ended March 31, financial results on May 9 with the following highlights:

Revenue$120.5 million
Net income$1.8 million
Cash$5.6 million
Debt$224.2 million

Outlook

The company entered into the fiscal year 2013 anticipating an approximately 15% increase in annualized revenues for fiscal 2013 over fiscal 2012. Year-to-date, revenues have increased by 13.5%, which puts the company right on target with the anticipated 15% increase in annualized revenues the company forecasted in the beginning of the year once the company adds back the recoverable days in the fourth quarter.

The company's growth efforts recently have been concentrated on bids, conversions and managed contracts. So looking to fiscal 2014 beginning this July, the company is forecasting approximately 10% growth over fiscal 2013 with what the company already has booked.

Competition

In contrast to large, national competitors, Student Transportation targets school districts located in rural and suburban markets.

Student Transportation encounters national competitors less frequently in rural and suburban markets than it would if it operated in urban markets. Student Transportation's national competitors are focused primarily on large, urban markets, with the objective of implementing homogeneous operations. Student Transportation's local competitors often lack the financial resources to meet increasingly stringent contract requirements. Specifically, management believes that these smaller competitors often lack resources to meet customers' growing needs and increased government regulations. In contrast, Student Transportation is large, growing, consistently profitable and, unlike its smaller competitors, leverages its size and infrastructure to provide service to its customers at a profit. Student Transportation intends to continue to use its significant market presence to its advantage in further penetrating its target markets. Student Transportation's emphasis on local markets, combined with its national operating efficiencies, allows it to enjoy significant competitive advantages.

My analysis

There have been three different insiders buying the shares and there have not been any insiders selling the shares during the past 30 days. The company has an insider ownership of 25.63%. There are two analyst buy ratings, two neutral ratings and zero sell ratings with an average target price of $6.97. The stock is trading at a P/E ratio of 141.61 a forward P/E ratio of 121.79. The company has a book value of $2.44 per share and the stock has a dividend yield of 8.80%. I have a cautiously bullish bias for the stock currently based on the high dividend yield, large insider ownership and the intensive insider buying activity.

Source: 1 Service-Sector Company And 1 Basic Materials Stock With Recent Intensive Insider Buying