Insiders Are Buying Pembina Pipeline

| About: Pembina Pipeline (PBA)

In this article, I will feature one pipeline company that has seen intensive insider buying during the last 30 days. 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%.

Pembina Pipeline Corporation (NYSE:PBA) provides transportation and midstream services for the energy industry in North America.

Insider buying during the last 30 days

Here is a table of Pembina Pipeline's insider-trading activity during the last 30 days by insider.

Name Title Trade Date Shares Purchased Ownership Plan Current Ownership Increase In Shares
Michael Dilger COO Oct 8 15,000 No 125,000 shares +13.6%
Eric Dyck VP Nov 7 25 Yes 5,430 shares +0.5%
Allan Edgeworth Director Nov 7 186 Yes 42,711 shares +0.4%
Jennifer Harker Officer Nov 5 211 No 211 shares from 0 to 211
Jason Wiun VP Nov 6 550 No 965 shares +132.5%

There have been 15,972 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Pembina Pipeline's insider-trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
November 2013 972 0
October 2013 30,833 550
September 2013 0 0
August 2013 0 0
July 2013 86,500 0
June 2013 0 0
May 2013 370 0
April 2013 0 0
March 2013 84,312 0

There have been 202,987 shares purchased and there have been 550 shares sold by insiders since March 1.

Financials

Pembina Pipeline reported the third-quarter financial results on November 1 with the following highlights:

Revenue $1.3 billion
Net income $71.8 million
Net debt $2.0 billion

Outlook

Pembina currently has the largest suite of commercially secured and unrisked growth projects on its horizon than at any time in its history.

(Source: Corporate presentation)

Competition

Pembina Pipeline's competitors include Inter Pipeline (OTCPK:IPPLF), and TransCanada Corporation (NYSE:TRP). Here is a table comparing these companies.

Company PBA IPPLF TRP
P/E 34.5 N/A 21.2
Dividend yield 4.9% 4.9% 3.9%

Here is a table of these competitors' insider-trading activities during the last six months.

Company Insider buying / shares Insider selling / shares
IPPLF 37,562 0
TRP 7,762 98,383

Only Pembina Pipeline has seen intensive insider buying during the past 30 days.

Conclusion

There have been five different insiders buying Pembina and there have not been any insiders selling Pembina during the last 30 days. Three of these five insiders increased their holdings by more than 10%.

There are three analyst buy ratings, one neutral rating, and zero sell ratings with an average price target of $36.67. The stock is trading at a P/E ratio of 34.50 and a forward P/E ratio of 27.76. The company has a book value of $15.42 per share and the stock has a dividend yield of 4.93%. The 200-day moving average is currently at $30.76, which could be a good entry point for the stock.

(Source: Corporate presentation)

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in PBA over the next 72 hours. 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.