QEP Resources: 3 Different Insiders Have Purchased Shares During The Last 30 Days

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 |  About: QEP Resources, Inc. (QEP), Includes: COG, COP, SM
by: Markus Aarnio

Summary

Three insiders purchased the stock within one month.

The stock was sold by no insiders in the month of intensive purchasing.

All three of these insiders increased their holdings by more than 10%.

In this article, I will feature one energy 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 increase their holdings by more than 10%.

QEP Resources (NYSE:QEP) operates as an independent oil and natural gas exploration and production company.

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Insider buying during the last 30 days

Here is a table of QEP's insider activity during the last 30 days.

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Thomas O'Connor Director Feb 28 5,000 11,302 shares +79.3%
Robert Heinemann Director Feb 28 7,200 7,200 shares from 0 to 7,200
Julie Dill Director Feb 28 250 525 shares +90.9%
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There have been 12,450 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of QEP's insider activity by calendar month.

Month Insider buying / shares Insider selling / shares
February 2014 12,450 0
January 2014 0 0
December 2013 0 0
November 2013 0 3,300
October 2013 0 0
September 2013 0 1,654
August 2013 0 0
July 2013 0 0
June 2013 0 0
May 2013 0 0
April 2013 0 0
March 2013 0 0
February 2013 0 0
January 2013 0 0
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There have been 12,450 shares purchased, and there have been 4,954 shares sold by insiders since January 2013. The month of February 2014 has seen all of the insider buying.

Financials

QEP reported the full-year 2013 financial results on February 25 with the following highlights:

Revenue $2.9 billion
Net income $159.4 million
Net debt $3.0 billion
Production 309.0 Bcfe
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The stock plunged after these results, and the insiders purchased their shares after the plunge.

Outlook

QEP's 2014 guidance is as follows:

Production 283-307 Bcfe
Capital investment $1,755-$1,855 million
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(Source: Investor presentation)

Competition

QEP's competitors include Cabot Oil & Gas Corporation (NYSE:COG), ConocoPhillips (NYSE:COP), and SM Energy Company (NYSE:SM). Here is a table comparing these companies.

Company QEP COG COP SM
Market Cap: 5.15B 14.58B 81.54B 5.08B
Employees: 1,001 N/A 18,400 793
Qtrly Rev Growth (yoy): 0.02 0.32 -0.15 0.39
Revenue: 2.94B 1.75B 56.86B 2.27B
Gross Margin: 0.54 0.77 0.47 0.71
EBITDA: 1.54B 1.18B 21.75B 1.36B
Operating Margin: 0.15 0.30 0.25 0.14
Net Income: 159.40M 279.77M 7.98B 170.93M
EPS: 0.89 0.67 7.38 2.51
P/E: 32.34 52.27 9.01 30.21
PEG (5 yr expected): 1.73 0.53 2.14 0.58
P/S: 1.73 8.33 1.43 2.19
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QEP has the second-lowest P/S ratio among these four companies.

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

Company Insider buying / shares Insider selling / shares
COG 14,000 3,000
COP 0 56,065
SM 5,500 55,888
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Only QEP has seen intensive insider buying during the last 30 days.

Conclusion

There have been three different insiders buying QEP, and there have not been any insiders selling QEP during the last 30 days. All three of these insiders increased their holdings by more than 10%. QEP has an insider ownership of 0.90%.

The insiders purchased their shares at prices ranging from $28.37 to $28.91. I believe QEP could be a good pick below $29 based on the intensive insider buying.

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