In this article, I will feature one consumer stock that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:
The stock is purchased by three or more insiders within one month.
The stock is sold by no insiders in the month of intensive purchasing.
At least two purchasers increase their holdings by more than 10%.
Horizon North Logistics (OTC:HZNOF) provides camp and catering, ground matting, and marine transportation services to oil and gas exploration and production companies, oilfield service companies, and mining companies.
Insider buying during the last 30 days
Here is a table of Horizon North Logistics' insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Purchased||Current Ownership||Increase In Shares|
|Roderick Graham||SVP||Feb 24-28||25,000||55,000 shares||+83.3%|
|Scott Matson||CFO||Feb 24||4,200||4,200 shares||from 0 to 4,200|
|Dale Tremblay||Director||Feb 25||2,100||13,100 shares||+19.1%|
There have been 31,300 shares purchased by insiders during the last 30 days.
Insider buying by calendar month
Here is a table of Horizon North Logistics' insider activity by calendar month.
|Month||Insider buying / shares||Insider selling / shares|
There have been 189,400 shares purchased, and there have been 4,478,421 shares sold by insiders since January 2013.
Horizon North Logistics reported the full-year 2013 financial results on February 19 with the following highlights:
|Net income||$42.6 million|
|Net debt||$79.8 million|
The insiders purchased their shares after this report.
Horizon North Logistics commented on February 19:
After a very soft quarter to end 2013, activity levels have improved to start 2014. In the camp rental and catering business, activity levels are slightly ahead of where they were last year at this time. The matting business is also seeing rental and sales levels similar to last year at this time with increases expected as spring break-up approaches.
|Qtrly Rev Growth (yoy):||-0.22||-0.09|
Horizon North Logistics has a lower P/S ratio than Black Diamond Group. In Black Diamond Group, there have been 3,400 shares purchased and there have been zero shares sold by insiders this year. Only Horizon North Logistics has seen intensive insider buying during the last 30 days.
There have been three different insiders buying Horizon North Logistics, and there have not been any insiders selling Horizon North Logistics during the last 30 days. All three of these insiders increased their holdings by more than 10%.
The insiders purchased their shares at prices ranging from $7.05 (C$7.76) to $7.27 (C$8.00). I believe Horizon North Logistics could be a good pick below $7 based on the intensive insider buying.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in HZNOF 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.