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%.
DirectCash Payments (OTC:DCTFF) provides automated teller machines (ATMs), debit terminals, prepaid phone cards, and prepaid cash cards in Canada, the United States, Mexico, and internationally.
Insider buying during the last 30 days
Here is a table of DirectCash Payments' insider-trading activity during the last 30 days by insider.
|Name||Title||Trade Date||Shares Purchased||Public Offering||Current Ownership||Increase In Shares|
|Gary Dundas||Director||Nov 15||6,250||Yes||35,510 shares||+21.4%|
|Adel ElAssal||CIO||Nov 15||1,250||Yes||8,393 shares||+17.5%|
|Amanda Gallacher||VP||Nov 15||1,000||Yes||5,207 shares||+23.8%|
|Brenda Hughes||CFO||Nov 15||6,250||Yes||7,771 shares||+410.9%|
|R. Bradley Hurtubise||Director||Nov 15||6,250||Yes||76,708 shares||+8.9%|
|Angela King||VP||Nov 15||1,000||Yes||5,839 shares||+20.7%|
|Darryl Matthews||VP||Nov 15||1,000||Yes||5,626 shares||+21.6%|
|Todd Schneider||COO||Nov 15||2,000||Yes||17,817 shares||+12.6%|
|Jeffrey Smith||CEO||Nov 15||46,875||Yes||1,992,465 shares||+2.4%|
There have been 71,875 shares purchased by insiders during the last 30 days.
Insider buying by calendar month
Here is a table of DirectCash Payments' insider-trading activity by calendar month.
|Month||Insider buying / shares||Insider selling / shares|
There have been 71,875 shares purchased and there have been 4,172 shares sold by insiders since June 2013. The month of November has seen all of the insider buying.
DirectCash reported the third-quarter financial results on November 14 with the following highlights:
|Funds from operations||$10.7 million|
|Net loss||$0.2 million|
On November 15, DirectCash closed its previously announced public offering of 950,000 common shares at a price of $16.00 per share for aggregate gross proceeds of $15,200,000.
DirectCash's focus for the remainder of 2013 will be to continue to integrate its new businesses and international divisions, driving operating efficiencies as well as to continue to grow the business in a reasonable and sustainable manner.
(Source: Investor presentation)
Here is a table comparing these three companies.
DirectCash has the lowest P/S ratio among these three companies.
Here is a table of these competitors' insider-trading activities this year.
|Company||Insider buying / shares||Insider selling / shares|
Only DirectCash has seen intensive insider buying during the last 30 days.
There have been nine different insiders buying DirectCash and there have not been any insiders selling DirectCash during the last 30 days. Seven of these nine insiders increased their holdings by more than 10%.
DirectCash is trading at a P/E ratio of 88.67 and the stock has a dividend yield of 7.8%. I believe the stock could be a good pick at $16 based on the intensive insider buying.