Murphy USA: 3 Different Insiders Have Purchased Shares During The Last 30 Days

Dec.18.13 | About: Murphy USA, (MUSA)

In this article, I will feature one specialty retailer 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%.

Murphy USA (NYSE:MUSA) operates a chain of retail stations in the United States.

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Insider buying during the last 30 days

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

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Andrew Clyde CEO Dec 13-16 2,000 6,000 shares +50.0%
Donald Smith VP Dec 13 250 289 shares +641.0%
Claiborne Deming Director Nov 25 25,000 674,628 shares +3.8%
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There have been 27,250 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

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

Month Insider buying / shares Insider selling / shares
December 2013 2,250 0
November 2013 25,000 21,625
October 2013 0 0
September 2013 1,500 0
August 2013 9,500 0
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There have been 38,250 shares purchased and there have been 21,625 shares sold by insiders since August 2013.

Financials

Murphy USA reported the third-quarter financial results on November 6 with the following highlights:

Revenue $4.8 billion
Net income $41.7 million
Cash $262.5 million
Debt $642.4 million
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Competition

Murphy USA's competitors include Susser Holdings Corporation (NYSE:SUSS), Casey's General Stores (NASDAQ:CASY), and CST Brands (NYSE:CST). Here is a table comparing these companies.

Company MUSA SUSS CASY CST
Market Cap: 1.97B 1.34B 2.71B 2.65B
Employees: 1,675 6,436 10,876 7,026
Qtrly Rev Growth (yoy): -0.04 0.07 0.13 -0.01
Revenue: 17.23B 6.04B 6.90B 10.97B
Gross Margin: 0.03 0.10 0.17 0.10
EBITDA: 420.10M 171.90M 357.85M 399.00M
Operating Margin: 0.02 0.02 0.04 0.03
Net Income: 160.46M 18.99M 127.30M 169.00M
EPS: 3.43 0.87 3.28 2.24
P/E: 12.29 72.44 21.49 15.61
PEG (5 yr expected): N/A 3.10 2.45 N/A
P/S: 0.11 0.22 0.39 0.23
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Murphy USA is trading at the lowest P/S ratio among these four companies.

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

Company Insider buying / shares Insider selling / shares
SUSS 0 58,341
CASY 0 61,737
CST 4,500 15,079,448
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Only Murphy USA has seen intensive insider buying during the last 30 days.

Conclusion

There have been three different insiders buying Murphy USA and there have not been any insiders selling Murphy USA during the last 30 days. Two of these three insiders increased their holdings by more than 10%. Murphy USA has an insider ownership of 1.00%.

Murphy USA is trading at a P/E ratio of 12.29 and a forward P/E ratio of 18.04. The company has a book value of $12.06 per share. Murphy USA traded publicly for the first time on September 3, 2013. The opening price was $37.30. Murphy USA is currently trading right at its 50-day moving average, which could be a good entry point for the stock based on the intensive insider buying.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in MUSA 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.