In this article, I will feature one energy 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%.
Argent Energy Trust (OTC:ANGYF) owns, operates and manages oil and gas properties located primarily in South Texas, Oklahoma and Kansas, U.S., with drilling prospects focused in the Eagle Ford, Austin Chalk, and Wilcox formations.
Insider buying during the last 30 days
Here is a table of Argent's insider-trading activity during the last 30 days by insider.
|Name||Title||Trade Date||Shares Purchased||Current Ownership||Increase In Shares|
|Sean Bovingdon||CFO||Oct 15-Nov 15||4,921||17,521 shares||+39.1%|
|Brian Prokop||CEO||Oct 15-Nov 14||39,630||133,157 shares||+42.4%|
|Eric Tremblay||Chairman||Oct 15||5,000||57,000 shares||+9.6%|
There have been 49,551 shares purchased by insiders during the last 30 days.
Insider buying by calendar month
Here is a table of Argent's insider-trading activity by calendar month.
|Month||Insider buying / shares||Insider selling / shares|
There have been 83,551 shares purchased and there have been zero shares sold by insiders since June 2013. The month of November has seen the most insider buying.
Argent reported the third-quarter financial results on November 12 with the following highlights:
|Cash flow from operations||$17.8 million|
|Net loss||$16.5 million|
|Net debt||$102.2 million|
Argent's guidance is as follows:
|Annual (2013) production||5,700 boe/d|
|Projected 2013 exit production||7,000 boe/d|
|Monthly dividends throughout 2014||$0.0875 per share|
Argent's competitors include Parallel Energy Trust (OTC:PEYTF), and Eagle Energy Trust (ENYTF). Here is a table comparing these companies.
Argent has the second-highest dividend yield among these three companies.
Here is a table of these competitors' insider-trading activities during the last six months.
|Company||Insider buying / shares||Insider selling / shares|
Only Argent has seen intensive insider buying during the last 30 days.
There have been three different insiders buying Argent and there have not been any insiders selling Argent during the last 30 days. Two of these three insiders increased their holdings by more than 10%.
There are two analyst buy ratings, two neutral ratings, and zero sell ratings with an average price target of $10.83. Argent has a book value of $8.65 per share. I believe the stock could be a good pick below the book value based on the intensive insider buying.
(Source: November investor presentation)
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in OTC:ANGYF 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.