In this article, I will feature one services sector 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 increased their holdings by more than 10%.
InnerWorkings (NASDAQ:INWK) provides print management and promotional solutions to corporate clients in the United States and internationally.
Insider buying during the last 30 days
Here is a table of InnerWorkings' insider-trading activity during the last 30 days by insider.
|Name||Title||Trade Date||Shares Purchased||Current Ownership||Increase In Shares|
|David Fisher||Director||Nov 13-14||18,000||35,806 shares||+101.1%|
|Patrick Gallagher||Director||Nov 13||15,620||70,215 shares||+28.6%|
|Sagard Capital Partners, L.P.||10% Owner||Nov 11-13||710,700||7,015,225 shares||+11.3%|
There have been 744,320 shares purchased by insiders during the last 30 days.
Insider buying by calendar month
Here is a table of InnerWorkings' insider-trading activity by calendar month.
|Month||Insider buying / shares||Insider selling / shares|
There have been 757,320 shares purchased and there have been 135,000 shares sold by insiders this year. The month of November has seen the most insider buying.
InnerWorkings reported the third-quarter financial results on November 6 with the following highlights:
|Net income||$7.3 million|
On November 6, InnerWorkings lowered its 2013 revenue guidance from a range of $910 million to $940 million to a range of $865 million to $880 million, representing 9% to 10% revenue growth over 2012. InnerWorkings also lowered its 2013 GAAP diluted earnings per share guidance from a range of $0.45-$0.50 to a range of $0.16-$0.20. The revisions were due primarily to the performance of productions graphics.
InnerWorkings is the only one profitable out of these three companies.
Here is a table of these competitors' insider-trading activities this year.
|Company||Insider buying / shares||Insider selling / shares|
Only InnerWorkings has seen intensive insider buying during the last 30 days.
There have been three different insiders buying InnerWorkings and there have not been any insiders selling InnerWorkings during the last 30 days. All three of these insiders increased their holdings by more than 10%.
There are five analyst buy ratings, zero neutral ratings, and zero sell ratings with an average price target of $8.67. InnerWorkings is trading at a P/E ratio of 21.90 and a forward P/E ratio of 15.28. The company has a book value of $4.56 per share.
InnerWorkings reported the third-quarter financial results on November 6, and the stock plunged on the following day due to the weak guidance. The insiders started buying the shares on November 11. I believe the stock could be a good pick at the book value based on the intensive insider buying.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in INWK 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.