Intensive Insider Buying In Tremor Video

Nov.16.13 | About: Tremor Video (TRMR)

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.

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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.

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Adam Lichstein SVP Nov 13 4,000 4,000 shares from 0 to 4,000
Todd Sloan CFO Nov 13 5,000 10,000 shares +100%
William Day CEO Nov 13 6,000 21,000 shares +40.0%
Rachel Lam Director Nov 12 1,000 3,500 shares +40.0%
James Rossman Director Nov 12 5,000 92,381 shares +5.7%
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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.

Month Insider buying / shares Insider selling / shares
November 2013 21,000 0
October 2013 0 0
September 2013 0 0
August 2013 32,600 0
July 2013 0 0
June 2013 0 0
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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
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Outlook

Tremor Video's guidance is as follows:

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

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

Company TRMR FUEL YUME GOOG
Market Cap: 198.13M 1.86B 286.41M 345.41B
Employees: 263 552 329 46,421
Qtrly Rev Growth (yoy): 0.41 1.32 0.36 0.12
Revenue: 122.94M 195.13M 132.41M 57.39B
Gross Margin: 0.45 0.46 0.46 0.57
EBITDA: -1.75M -14.15M 7.88M 17.60B
Operating Margin: -0.06 -0.09 0.04 0.24
Net Income: -8.17M -24.64M 3.20M 11.74B
EPS: -1.07 -2.72 0.12 36.75
P/E: N/A N/A 72.85 28.15
PEG (5 yr expected): N/A N/A N/A 1.44
P/S: 1.55 9.23 2.04 6.03
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Tremor Video has the lowest P/S ratio among these four companies.

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

Company Insider buying / shares Insider selling / shares
GOOG 0 4,398,323
YUME 0 0
FUEL 0 555,770
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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.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in TRMR 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.