Harvest Natural Resources: 6 Different Insiders Have Purchased Shares Last Week

Dec. 3.13 | About: Harvest Natural (HNR)

Editors' Note: This article covers one or more micro-cap stocks. Please be aware of the risks associated with these stocks.

In this article, I will feature one energy company 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 increased their holdings by more than 10%.

Harvest Natural Resources (NYSE:HNR) engages in the acquisition, exploration, development, production, and disposition of oil and natural gas properties.

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Insider buying during the last 30 days

Here is a table of Harvest's insider-trading activity during the last 30 days by insider.

Name Title Trade Date Shares Purchased Prospectus Current Ownership Increase In Shares
Stephen Chesebro Chairman Nov 27 100,000 Yes 449,521 shares +28.6%
Patrick Murray Director Nov 27 25,000 Yes 237,521 shares +11.8%
J. Michael Stinson Director Nov 27 31,000 Yes 129,667 shares +31.4%
James Edmiston CEO Nov 27 50,000 Yes 367,766 shares +15.7%
Stephen Haynes CFO Nov 27 10,000 Yes 71,647 shares +16.2%
Robert Speirs SVP Nov 27 30,000 Yes 225,483 shares +15.3%
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There have been 246,000 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Harvest's insider-trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
November 2013 246,000 0
October 2013 0 0
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 0 0
May 2013 0 0
April 2013 0 0
March 2013 0 0
February 2013 0 0
January 2013 0 0
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There have been 246,000 shares purchased and there have been zero shares sold by insiders this year. The month of November has seen all of the insider buying.

Financials

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

Net income $2.0 million
Cash $3.9 million
Debt $76.8 million
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On November 27, Harvest closed a $5.4 million financing.

Outlook

Harvest is currently in a process to sell its 32% interest in Petrodelta to Pluspetrol for $400 million.

Competition

Harvest's competitors include Talisman Energy (NYSE:TLM), BP plc (NYSE:BP), and EOG Resources (NYSE:EOG). Here is a table comparing these companies.

Company HNR TLM BP EOG
Market Cap: 155.17M 12.40B 145.83B 45.08B
Employees: 52 3,087 85,700 2,650
Qtrly Rev Growth (yoy): N/A -0.27 0.05 0.33
Revenue: N/A 5.38B 379.14B 13.76B
Gross Margin: N/A 0.65 0.11 0.59
EBITDA: -44.62M 4.26B 29.67B 6.86B
Operating Margin: N/A -0.07 0.04 0.16
Net Income: 4.89M 197.00M 24.46B 1.11B
EPS: 0.27 0.09 7.67 4.08
P/E: 14.45 133.56 6.07 40.48
PEG (5 yr expected): 0.05 7.97 3.90 1.59
P/S: N/A 2.34 0.39 3.27
P/B: 0.36 1.34 1.13 3.03
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Harvest has the lowest P/B ratio among these four companies.

Here is a table of these competitors' insider-trading activities this year.

Company Insider buying / shares Insider selling / shares
TLM 37,870 0
EOG 3,000 349,407
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Only Harvest has seen intensive insider buying during the last 30 days.

Conclusion

There have been six different insiders buying Harvest and there have not been any insiders selling Harvest during the last 30 days. All six of these insiders increased their holdings by more than 10%. Harvest has an insider ownership of 4.20%.

There is one analyst buy rating, one neutral rating, and zero sell ratings with an average price target of $6.50. Harvest has a book value of $10.48 per share. I believe the stock could be a good pick below 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 HNR 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.