In this article, I will feature one renewable energy producer that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:
The stock is purchased by three or more insiders within one month.
The stock is sold by no insiders in the month of intensive purchasing.
At least two purchasers increase their holdings by more than 10%.
Boralex (GM:BRLXF) is a power producer whose core business is dedicated to the development and the operation of renewable energy power stations. Currently, Boralex operates an asset base with an installed capacity of almost 500 MW in Canada, the Northeastern United States and France. Boralex is also committed under power development projects, both independently and with Canadian and European partners, to add approximately 550 MW of power that will be put in service by the end of 2015.
Insider buying during the last 30 days
- Sylvain Aird purchased 500 shares on August 8 and currently holds 2,800 shares or less than 0.1% of the company. Sylvain Aird is Vice-President Boralex Europe and Chief Legal Officer. Sylvain Aird increased his holdings by 21.7% in August.
- Alain Ducharme purchased 2,500 shares on August 9 and currently holds 2,500 shares or less than 0.1% of the company. Alain Ducharme serves as a director of the company. Alain Ducharme increased his holdings from zero shares to 2,500 shares in August.
- Alain Lemaire purchased 2,500 shares on August 23 and currently holds 72,100 shares or 0.2% of the company. Alain Lemaire is an insider of the company. Alain Lemaire increased his holdings by 3.6% in August.
Insider buying by calendar month
Here is a table of Boralex's insider-trading activity by calendar month.
|Month||Insider buying / shares||Insider selling / shares|
There have been 5,500 shares purchased and there have been zero shares sold by the insiders since June 2013.
Boralex reported the second-quarter financial results on August 7 with the following highlights:
|Net loss||$1.7 million|
Boralex continues to develop several projects in Canada and France, which will significantly influence its asset profile in the next few years. Construction of Phase I of the Seigneurie de Beaupré Wind Farms is still on schedule despite a one-week work shutdown caused by a general strike in Québec's construction industry last June. The first 272 MW will be commissioned in December 2013 followed by an additional 68 MW with the Phase II in December 2014. Elsewhere in Canada, construction is expected to begin on the Témiscouata I wind farm in the third quarter. Work is on schedule at the Jamie Creek hydroelectric site, which Boralex expects to commission in early 2014.
In France, construction continues at the La Vallée and Vron wind farms, with commissioning still scheduled for late 2013. Boralex is currently actively working at finalizing the financing for the Fortel-Bonnières and St-François projects.
Boralex' competitors include Brookfield Renewable Energy Partners L.P. (BEP). Brookfield Renewable Energy Partners has also seen insider buying in August. Brookfield Renewable Energy Partners has a dividend yield of 5.6%.
There have been three different insiders buying Boralex and there have not been any insiders selling Boralex during the last 30 days. Two out of these three insiders increased their holdings by more than 10%.
Boralex is in a position to double its EBITDA by the end of 2016 in comparison to the last twelve months results. This could be done without the need to access the equity markets.
There are five analyst buy ratings, two neutral ratings and zero sell ratings with an average target price of $12.58. Boralex has a book value of $9.38 per share. I believe the stock could be a good pick at the book value of $9.38 per share.