Capital Power: 4 Different Insiders Have Purchased Shares During The Last 30 Days

Feb.11.14 | About: Capital Power (CPXWF)

In this article, I will feature one utility 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%.

Capital Power Corporation (OTC:CPXWF) acquires, develops, and operates power generation facilities in Canada and the United States.

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Insider buying during the last 30 days

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

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Todd Gilchrist SVP Feb 6 299 299 shares from 0 to 299
Philip Lachambre Director Jan 24 642 10,720 shares +6.4%
Stuart Lee CFO Jan 22 2,289 22,667 shares +11.2%
Darcy Trufyn SVP Feb 3 815 12,189 shares +7.2%
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There have been 4,045 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

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

Month Insider buying / shares Insider selling / shares
February 2014 1,114 0
January 2014 4,531 0
December 2013 0 0
November 2013 0 0
October 2013 2,030 0
September 2013 16,417 0
August 2013 2,385 0
July 2013 0 0
June 2013 0 0
May 2013 0 0
April 2013 0 0
March 2013 2,356 0
February 2013 1,796 0
January 2013 0 0
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There have been 30,629 shares purchased, and there have been zero shares sold by insiders since January 2013.

Financials

Capital Power reported the third-quarter financial results on October 25 with the following highlights:

Revenue $380 million
Funds from operations $122 million
Net income $44 million
Net debt $2.0 billion
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(Source: Earnings presentation)

Outlook

Capital Power expects full-year 2013 financial results to exceed the high end of its annual guidance of $1.20 to $1.40 for normalized earnings per share and $3.80 to $4.20 for cash flow per share.

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(Source: Earnings presentation)

Competition

Capital Power's competitors include TransAlta Corp. (NYSE:TAC), Calpine Corp. (NYSE:CPN), and Iberdrola SA (OTCPK:IBDRY). Here is a table comparing these companies.

Company CPXWF TAC CPN IBDRY
Market Cap: 1.55B 3.59B 8.46B 39.14B
Employees: N/A 2,084 2,151 31,338
Qtrly Rev Growth (yoy): -0.04 0.19 0.20 -0.11
Revenue: 1.39B 2.45B 6.22B 42.96B
Gross Margin: N/A 0.39 0.23 0.38
EBITDA: 466.77M 959.01M 1.39B 7.78B
Operating Margin: 0.17 0.16 0.12 0.08
Net Income: 98.86M 35.67M 211.00M 3.59B
EPS: 1.41 0.14 0.47 2.29
P/E: 13.70 97.66 41.70 10.95
PEG (5 yr expected): N/A 21.97 8.12 N/A
P/S: 1.12 1.44 1.33 0.90
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Capital Power has the second-lowest P/S ratio among these four companies.

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

Company Insider buying / shares Insider selling / shares
TAC 4,200 0
CPN 10,000 10,987,900
IBDRY

N/A

N/A
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Only Capital Power has seen intensive insider buying during the last 30 days.

Conclusion

There have been four different insiders buying Capital Power, and there have not been any insiders selling Capital Power during the last 30 days. Two of these four insiders increased their holdings by more than 10%.

Capital Power has a book value of $27.22 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 CPXWF 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.