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:
- 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%.
Harvest Natural Resources (NYSE:HNR) engages in the acquisition, exploration, development, production, and disposition of oil and natural gas properties.
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%|
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|
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.
Harvest reported the third-quarter financial results on November 12 with the following highlights:
|Net income||$2.0 million|
On November 27, Harvest closed a $5.4 million financing.
Harvest is currently in a process to sell its 32% interest in Petrodelta to Pluspetrol for $400 million.
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|
Only Harvest has seen intensive insider buying during the last 30 days.
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.