CorEnergy: 4 Different Insiders Have Purchased Shares This Year

In this article, I will feature one energy trust 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%.

CorEnergy Infrastructure Trust (NYSE:CORR) primarily owns midstream and downstream U.S. energy infrastructure assets subject to long-term triple net participating leases with energy companies.

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Insider buying during the last 30 days

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

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Catherine Lewis Director Feb 18 4,464 4,464 shares from 0 to 4,464
David Schulte CEO Jan 27 2,750 67,234 shares +4.3%
Conrad Ciccotello Director Jan 24 1,200 8,073 shares +17.5%
Charles Heath Director Jan 24 500 5,500 shares +10.0%
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There have been 8,914 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

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

Month

Insider buying / shares

Insider selling / shares

February 2014 4,464 0
January 2014 4,450 0
December 2013 0 0
November 2013 0 0
October 2013 0
September 2013 0 0
August 2013 12,500 0
July 2013 0 0
June 2013 15,500 0

May 2013

0

0

April 2013

0

0

March 2013

2,000

0

February 2013

0

0

January 2013

3,000

0

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There have been 41,914 shares purchased, and there have been zero shares sold by insiders since January 2013.

Financials

CorEnergy reported the third-quarter financial results on November 12 with the following highlights:

Revenue $7.6 million
Funds from operations $3.1 million
Net income $0.4 million
Cash $18.9 million
Debt $70.0 million
Quarterly distribution $0.125 per share
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(Source: Earnings presentation)

Outlook

CorEnergy expects its major energy infrastructure assets, the Pinedale LGS and the Eastern Interconnect Project, to produce stable and recurring revenues for the remainder of 2013.

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(Source: Earnings presentation)

Competition

CorEnergy's competitors include Plains All American Pipeline, L.P. (NYSE:PAA), and Sunoco Logistics Partners L.P. (NYSE:SXL). Here is a table comparing these companies.

Company CORR PAA SXL
Market Cap: 162.57M 19.30B 8.52B
Qtrly Rev Growth (yoy): N/A 0.13 0.41
Revenue: 27.90M 42.25B 15.54B
Gross Margin: 0.74 0.06 0.06
EBITDA: 1.17M 2.08B 852.00M
Operating Margin: 0.19 0.04 0.04
Net Income: 1.10M 960.00M 309.00M
EPS: N/A 2.80 2.96
P/E: N/A 19.13 27.70
PEG (5 yr expected): N/A -2.33 2.35
P/S: 5.83 0.46 0.55
P/B: 0.93 2.68 1.61
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CorEnergy has the lowest P/B ratio among these three companies.

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

Company Insider buying / shares Insider selling / shares
PAA 0 119,736
SXL 10,150 0
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Only CorEnergy has seen intensive insider buying during the last 30 days.

Conclusion

There have been four different insiders buying CorEnergy, and there have not been any insiders selling CorEnergy during the last 30 days. Three of these four insiders increased their holdings by more than 10%. CorEnergy has an insider ownership of 0.10%.

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(Source: Earnings presentation)

CorEnergy has a book value of $7.27 per share, and the stock has a dividend yield of 7.43%. I believe CorEnergy could be a good pick below the book value based on the intensive insider buying.

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(Source: Earnings presentation)

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