In this article, I will feature one consumer 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%.
Green Mountain Coffee Roasters (NASDAQ:GMCR) is engaged in the specialty coffee and coffeemaker businesses in the United States and Canada.
Insider buying during the last 30 days
Here is a table of Green Mountain Coffee Roasters' insider-trading activity during the last 30 days by insider.
|Name||Title||Trade Date||Shares Purchased||Current Ownership||Increase In Shares|
|Robert Steele||Director||Nov 26||2,000||2,431 shares||+464.0%|
|Norman Wesley||Chairman||Nov 25||10,000||20,164 shares||+98.4%|
|David Mackay||Director||Nov 25||10,000||26,135 shares||+62.0%|
There have been 22,000 shares purchased by insiders during the last 30 days.
Insider buying by calendar month
Here is a table of Green Mountain Coffee Roasters' insider-trading activity by calendar month.
|Month||Insider buying / shares||Insider selling / shares|
There have been 39,000 shares purchased and there have been 1,090,450 shares sold by insiders this year. The month of November has seen the most insider buying.
Green Mountain Coffee Roasters reported the fiscal 2013 full-year, which ended September 28, financial results on November 20 with the following highlights:
|Net income [GAAP]||$483.2 million|
Green Mountain Coffee Roasters' guidance is as follows:
|Net sales growth||low-to-mid single digits over the first quarter of fiscal year 2013||high single digits over fiscal year 2013|
Green Mountain Coffee Roasters has the lowest PEG 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 Green Mountain Coffee Roasters has seen intensive insider buying during the last 30 days.
There have been three different insiders buying Green Mountain Coffee Roasters and there have not been any insiders selling Green Mountain Coffee Roasters during the last 30 days. All three of these insiders increased their holdings by more than 10%. Green Mountain Coffee Roasters has an insider ownership of 0.10%.
There are 10 analyst buy ratings, four neutral ratings, and one sell rating with an average price target of $93.09. The stock is trading at a P/E ratio of 21.36 and a forward P/E ratio of 15.49. The company has a book value of $16.96 per share and the stock has a dividend yield of 1.48%. I have a cautiously bullish bias for the stock currently based on the intensive insider buying.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in GMCR 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.