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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.

(click to enlarge)

Insider buying during the last 30 days

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

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
Catherine LewisDirectorFeb 184,4644,464 sharesfrom 0 to 4,464
David SchulteCEOJan 272,75067,234 shares+4.3%
Conrad CiccotelloDirectorJan 241,2008,073 shares+17.5%
Charles HeathDirectorJan 245005,500 shares+10.0%

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 20144,4640
January 20144,4500
December 201300
November 201300
October 2013 0
September 201300
August 201312,5000
July 201300
June 201315,5000

May 2013

0

0

April 2013

0

0

March 2013

2,000

0

February 2013

0

0

January 2013

3,000

0

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

(click to enlarge)

(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.

(click to enlarge)

(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.

CompanyCORRPAASXL
Market Cap:162.57M19.30B8.52B
Qtrly Rev Growth (yoy):N/A0.130.41
Revenue:27.90M42.25B15.54B
Gross Margin:0.740.060.06
EBITDA:1.17M2.08B852.00M
Operating Margin:0.190.040.04
Net Income:1.10M960.00M309.00M
EPS:N/A2.802.96
P/E:N/A19.1327.70
PEG (5 yr expected):N/A-2.332.35
P/S:5.830.460.55
P/B:0.932.681.61

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.

CompanyInsider buying / sharesInsider selling / shares
PAA0119,736
SXL10,1500

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%.

(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.

(click to enlarge)

(Source: Earnings presentation)

Source: CorEnergy: 4 Different Insiders Have Purchased Shares This Year