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:
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%.
QEP Resources (NYSE:QEP) operates as an independent oil and natural gas exploration and production company.
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%|
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|
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.
QEP reported the full-year 2013 financial results on February 25 with the following highlights:
|Net income||$159.4 million|
|Net debt||$3.0 billion|
The stock plunged after these results, and the insiders purchased their shares after the plunge.
QEP's 2014 guidance is as follows:
|Capital investment||$1,755-$1,855 million|
(Source: Investor presentation)
|Qtrly Rev Growth (yoy):||0.02||0.32||-0.15||0.39|
|PEG (5 yr expected):||1.73||0.53||2.14||0.58|
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|
Only QEP has seen intensive insider buying during the last 30 days.
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.