Seeking Alpha
Long/short equity, insider ownership
Profile| Send Message| ()  

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:

  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%.

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.


(Click to enlarge)

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
November 2013 32,451 0
October 2013 17,100 0
September 2013 0 0
August 2013 31,000 0
July 2013 0 0
June 2013 3,000 0

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.

Financials

Argent reported the third-quarter financial results on November 12 with the following highlights:

Revenue $32.2 million
Cash flow from operations $17.8 million
Net loss $16.5 million
Net debt $102.2 million
Production 5,407 boe/d

Outlook

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

Competition

Argent's competitors include Parallel Energy Trust (OTC:PEYTF), and Eagle Energy Trust (OTC:ENYTF). Here is a table comparing these companies.

Company ANGYF PEYTF ENYTF
P/E N/A N/A 56.4
Dividend yield 13.2% 16.3% 12.7%

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
PEYTF 162,512 0
ENYTF 0 0

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

Conclusion

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.


(Click to enlarge)

(Source: November investor presentation)

Source: Insiders Are Buying Argent Energy Trust