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In this article, I will feature one bank 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%.

VantageSouth Bancshares (VSB) operates as the bank holding company for VantageSouth Bank that provides commercial banking solutions for individuals, businesses, business owners, and professionals in North Carolina.

(click to enlarge)

Insider buying during the last 30 days

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

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
Steven JonesBank PresidentFeb 32,50012,819 shares+24.2%
David TheritPAOJan 311,0002,000 shares+100%
Joseph LambDirectorJan 3132,190437,361 shares+7.9%
David BrodyDirectorJan 31155,643157,643 shares+7,782.2%
Adam AbramDirectorJan 3197,276107,976 shares+909.1%
George DavisDirectorJan 319,728111,843 shares+9.5%

There have been 298,337 shares purchased by insiders during the last 30 days. Joseph Lamb, David Brody, Adam Abram, and George Davis purchased shares pursuant to a private placement at a $5.14 share price.

Insider buying by calendar month

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

Month

Insider buying / shares

Insider selling / shares

February 20142,5000
January 2014295,8370
December 201300
November 201300
October 201300
September 20131,1820
August 20133,8200
July 201300
June 201300

May 2013

48,200

0

April 2013

0

0

March 2013

2,000

0

February 2013

9,935

0

January 2013

0

0

There have been 363,474 shares purchased, and there have been zero shares sold by insiders since January 2013. The month of January 2014 has seen the most insider buying.

Financials

VantageSouth reported the full-year 2013 financial results on January 29 with the following highlights:

Net interest income$64.6 million

Net income

$4.7 million

Book value

$4.12 per share

Tangible book value

$3.42 per share

News

VantageSouth closed a $47 million private placement on January 31.

Competition

VantageSouth's competitors include United Community Banks (UCBI), Union First Market Bankshares (UBSH), and First Financial Holdings (SCBT). Here is a table comparing these companies.

CompanyVSBUCBIUBSHSCBT
Market Cap:261.40M988.93M578.94M1.40B
Employees:4741,4961,024N/A
Qtrly Rev Growth (yoy):0.040.180.310.86
Revenue:82.03M199.65M184.30M325.21M
Operating Margin:0.220.220.270.38
Net Income:4.68M250.28M34.50M47.87M
EPS:0.114.291.382.38
P/E:53.083.8816.8024.72
PEG (5 yr expected):N/A0.471.771.29
P/S:3.214.703.154.34

VantageSouth has the second-lowest P/S ratio among these four companies.

Here is a table of these competitors' insider-trading activities during the last 12 months.

CompanyInsider buying / sharesInsider selling / shares
UCBI3,5930
UBSH3,300116,510
SCBT3,3951,831

Only VantageSouth has seen intensive insider buying during the last 30 days.

Conclusion

There have been six different insiders buying VantageSouth, and there have not been any insiders selling VantageSouth during the last 30 days. Four of these six insiders increased their holdings by more than 10%. VantageSouth has an insider ownership of 0.50%.

The insiders purchased most of their shares at $5.14, which could be a good entry point for the stock based on the intensive insider buying.

Source: VantageSouth Bancshares: 6 Different Insiders Have Purchased Shares This Year