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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:

  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 increased their holdings by more than 10%.

Tremor Video (NYSE:TRMR) provides technology-driven video advertising solutions for advertisers and agencies, and publisher partners in the United States and internationally.

(click to enlarge)

Insider buying during the last 30 days

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

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
Adam LichsteinSVPNov 134,0004,000 sharesfrom 0 to 4,000
Todd SloanCFONov 135,00010,000 shares+100%
William DayCEONov 136,00021,000 shares+40.0%
Rachel LamDirectorNov 121,0003,500 shares+40.0%
James RossmanDirectorNov 125,00092,381 shares+5.7%

There have been 21,000 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Tremor Video's insider-trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
November 201321,0000
October 201300
September 201300
August 201332,6000
July 201300
June 201300

There have been 53,600 shares purchased and there have been zero shares sold by insiders since June 2013.

Financials

Tremor Video reported the third-quarter financial results on November 7 with the following highlights:

Revenue$35.3 million
Adjusted EBITDA$0.1 million
Net loss$18.1 million
Cash$96.3 million

Outlook

Tremor Video's guidance is as follows:

Q4/2013FY/2013
Revenue$29.5-$30.5 million$125-$126 million
Adjusted EBITDA-$2.6 to -$2.1 million-$3.2 to -$2.7 million

Competition

Tremor Video's competitors include Rocket Fuel (NASDAQ:FUEL), YuMe (NYSE:YUME), and Google (NASDAQ:GOOG). Here is a table comparing these companies.

CompanyTRMRFUELYUMEGOOG
Market Cap:198.13M1.86B286.41M345.41B
Employees:26355232946,421
Qtrly Rev Growth (yoy):0.411.320.360.12
Revenue:122.94M195.13M132.41M57.39B
Gross Margin:0.450.460.460.57
EBITDA:-1.75M-14.15M7.88M17.60B
Operating Margin:-0.06-0.090.040.24
Net Income:-8.17M-24.64M3.20M11.74B
EPS:-1.07-2.720.1236.75
P/E:N/AN/A72.8528.15
PEG (5 yr expected):N/AN/AN/A1.44
P/S:1.559.232.046.03

Tremor Video has the lowest P/S ratio among these four companies.

Here is a table of these competitors' insider-trading activities this year.

CompanyInsider buying / sharesInsider selling / shares
GOOG04,398,323
YUME00
FUEL0555,770

Only Tremor Video has seen intensive insider buying during the last 30 days.

Conclusion

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

There are four analyst buy ratings, zero neutral ratings, and zero sell ratings with an average price target of $8.31.

Tremor Video reported the third-quarter financial results on November 7, and the stock plunged on the following day. The insiders started buying the shares on November 12. I believe the current price level could be a good entry point for the stock based on the intensive insider buying.

Source: Intensive Insider Buying In Tremor Video