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In this article, I will feature one services sector stock 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%.

The ADT Corporation (NYSE:ADT) provides electronic security, interactive home and business automation, and related monitoring services under the ADT, ADT Pulse, and Companion Service brands to residential and small business customers in the United States and Canada.

(click to enlarge)

Insider buying during the last 30 days

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

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
Donald BoeremaSVPFeb 350033,865 shares+1.5%
Michael GeltzeilerCFOFeb 310,00031,900 shares+45.7%
Richard DalyDirectorFeb 33,0003,510 shares+588.2%
Thomas ColliganDirectorFeb 33,00012,285 shares+32.3%

There have been 16,500 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

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

MonthInsider buying / sharesInsider selling / shares
February 201416,5000
January 201400
December 201300
November 2013014,741
October 2013018,000
September 2013018,000
August 20131,5000
July 201300
June 201300
May 20131,5000
April 201300
March 201300
February 20132,00057,013
January 201300

There have been 21,500 shares purchased, and there have been 107,754 shares sold by insiders since January 2013. The month of February 2014 has seen the most insider buying.

Financials

ADT reported the fiscal 2014 first-quarter, which ended December 27, financial results on January 30 with the following highlights:

Revenue$839 million
Net income$77 million
Cash$80 million
Debt$4.4 billion

ADT's shares plunged after these results. The insiders started buying shares after the plunge.

Outlook

ADT expects 4%-5% revenue growth for fiscal year 2014.

(Source: Earnings presentation)

Competition

ADT's competitors include Protection One, Monitronics International, and Vivint. Only ADT is publicly listed. ADT has the highest market share among these four companies.

(Source: January presentation)

Conclusion

There have been four different insiders buying ADT, and there have not been any insiders selling ADT during the last 30 days. Three of these four insiders increased their holdings by more than 10%. ADT has an insider ownership of 0.30%.

There are six analyst buy ratings, four neutral ratings, and zero sell ratings with an average price target of $41.79. I have a cautiously bullish bias for the stock currently based on the intensive insider buying.

Source: ADT: 4 Different Insiders Have Purchased Shares This Month