Kodiak Oil & Gas: 3 Different Insiders Have Sold Shares This Month

Jan. 1.14 | About: Kodiak Oil (KOG)

In this article, I will feature one energy stock that has seen intensive insider selling during the last 30 days. Intensive insider selling can be defined by the following three criteria:

  1. The stock was sold by three or more insiders within one month.
  2. The stock was not purchased by any insiders in the month of intensive selling.
  3. At least two sellers decreased their holdings by more than 10%.

Kodiak Oil & Gas Corp. (NYSE:KOG) engages in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas in the United States.

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Insider selling during the last 30 days

Here is a table of Kodiak Oil & Gas' insider-trading activity during the last 30 days by insider.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Russ Cunningham EVP Dec 27 26,475 No 229,630 shares 9.9%
James Henderson CFO Dec 26-27 100,000 No 364,780 shares 21.0%
Lynn Peterson CEO Dec 26-27 499,190 No 3,427,083 shares 12.6%
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There have been 625,665 shares sold by insiders during the last 30 days. More details about the Rule 10b5-1 trading plan can be found from this link.

Insider selling by calendar month

Here is a table of Kodiak Oil & Gas' insider-trading activity by calendar month.

Month Insider selling / shares Insider buying / shares
December 2013 625,665 0
November 2013 0 0
October 2013 0 0
September 2013 500,000 0
August 2013 0 0
July 2013 0 0
June 2013 0 0
May 2013 0 0
April 2013 0 0
March 2013 75,000 0
February 2013 75,000 0
January 2013 75,000 0
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There have been 1,350,665 shares sold, and there have been zero shares purchased by insiders this year. The month of December has seen the most insider selling.

Financials

Kodiak Oil & Gas reported the third-quarter financial results on October 31 with the following highlights:

Revenue $299.6 million
Net income $31.2 million
Cash $18.3 million
Debt $2.2 billion
Production 35,400 boe/d
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Outlook

Kodiak Oil & Gas' 2014 guidance is as follows:

Production 42,000-44,000 boe/d
CAPEX $940 million
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Competition

Kodiak Oil & Gas' competitors include Continental Resources (NYSE:CLR), EOG Resources (NYSE:EOG), and Marathon Oil (NYSE:MRO). Here is a table comparing these companies.

Company KOG CLR EOG MRO
Market Cap: 2.96B 20.39B 45.68B 24.52B
Employees: 172 753 2,650 3,367
Qtrly Rev Growth (yoy): 1.67 0.60 0.33 -0.06
Revenue: 768.97M 3.40B 13.76B 15.74B
Gross Margin: 0.79 0.82 0.59 0.68
EBITDA: 516.64M 2.55B 6.86B 9.34B
Operating Margin: 0.32 0.43 0.16 0.36
Net Income: 128.12M 851.91M 1.11B 1.70B
EPS: 0.48 4.63 4.08 2.39
P/E: 23.24 23.94 40.98 14.73
PEG (5 yr expected): 0.31 0.64 1.61 1.53
P/S: 3.94 6.15 3.36 1.58
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Kodiak Oil & Gas has the second-highest P/S ratio among these four companies.

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(Source: December presentation)

Here is a table of these competitors' insider-trading activities during the last 30 days.

Company Insider buying / shares Insider selling / shares
CLR 42,500 7,445
EOG

6,000

582
MRO 0 67,638
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Only Kodiak Oil & Gas has seen intensive insider selling during the last 30 days.

Conclusion

There have been three different insiders selling Kodiak Oil & Gas, and there have not been any insiders buying Kodiak Oil & Gas during the last 30 days. Two of these three insiders decreased their holdings by more than 10%. Kodiak Oil & Gas has an insider ownership of 2.30%.

Before entering short Kodiak Oil & Gas, I would like to get a bearish confirmation from the Point and Figure chart. The main reason for the proposed short entry is the intensive insider-selling activity.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within 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.