In this article, I will feature one tech stock 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%.
Tremor Video (TRMR) provides technology-driven video advertising solutions for advertisers and agencies, and publisher partners in the United States and internationally.
Insider buying during the last 30 days
- Rachel Lam purchased 2,500 shares on August 30, and currently holds 2,500 shares or less than 0.1% of the company. Rachel Lam serves as a director of the company.
- Robert Schechter purchased 5,000 shares on August 30, and currently holds 5,000 shares or less than 0.1% of the company. Robert Schechter serves as a director of the company.
- Lauren Wiener purchased 5,000 shares on August 27, and currently holds 5,000 shares or less than 0.1% of the company. Lauren Wiener is President, Global Sales and Marketing.
- Todd Sloan purchased 5,100 shares on August 27-28, and currently controls 5,100 shares or less than 0.1% of the company. Todd Sloan is Senior Vice President and Chief Financial Officer.
- William Day purchased 15,000 shares on August 23-27, and currently controls 15,000 shares or less than 0.1% of the company. William Day is Chief Executive Officer.
Insider buying by calendar month
Here is a table of Tremor Video's insider-trading activity by calendar month.
|Month||Insider buying / shares||Insider selling / shares|
There have been 32,600 shares purchased and there have been zero shares sold by the insiders since June 2013.
Tremor Video reported the second-quarter financial results on August 8, with the following highlights:
|Net loss||$0.3 million|
|Cash (pro forma)||$101.9 million|
Third-quarter revenue is expected to be in the range of $35.5 million to $36.5 million, and adjusted EBITDA is expected to be in the range of $0.1 million to $0.6 million.
Full-year 2013 revenue is expected to be in the range of $133.7 million to $135.7 million and adjusted EBITDA is expected to be in the range of $0.1 million to $1.0 million.
The Tremor Video Network competes with large online video publishers such as Hulu and YouTube, which is owned by Google (GOOG), as well as advertising networks and exchanges, such as BrightRoll and YuMe (YUME). Tremor Video also competes for advertiser spending with publishers, such as CBS Corporation (CBS), CNN and ESPN, who rely on their own sales organizations to attract brand advertisers across their properties. Tremor Video's VHA solution competes with ad tech infrastructure companies, such as Adap.tv and Videology.
In the traditional media space, Tremor Video's primary competitors for middle of the funnel advertising spend are mainly cable TV broadcasters, radio broadcasters and print media publishers. Across the digital media landscape, Tremor Video competes for advertising spend with large entities such as Facebook (FB), Microsoft (MSFT) and Yahoo! (YHOO) as well as Adobe Systems (ADBE) and Google that offer video advertising services as part of a larger solution for digital media buying.
Here is a table of these competitors' insider-trading activity during the last six months.
|Insider buying/shares||Insider selling/shares|
From this table we can see that none of these competitors had any insider buying during the past six months.
There have been five different insiders buying Tremor Video and there have not been any insiders selling Tremor Video during the last 30 days. All five of these insiders increased their holdings by more than 10%. Tremor Video has an insider ownership of 12.50%.
There are four analyst buy ratings, zero neutral ratings and zero sell ratings with an average target price of $12.88. I have a cautiously bullish bias for the stock currently based on the intensive insider buying.