Pembina Pipeline: 4 Different Insiders Have Purchased Shares During The Last 30 Days

Mar. 7.14 | About: Pembina Pipeline (PBA)

Summary

Four insiders purchased the stock within one month.

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

Three of these four insiders increased their holdings by more than 10%.

Pembina Pipeline Corporation (NYSE:PBA) provides transportation and midstream services for the energy industry in North America.

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Insider buying during the last 30 days

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

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Scott Burrows VP Feb 28 1,000 1,000 shares from 0 to 1,000
Claudia D'Orazio VP March 4 500 1,330 shares +60.2%
Robert Michaleski Director Feb 28 253 5,242 shares +5.1%
Paul Murphy SVP March 3 1,500 7,312 shares +25.8%
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There have been 3,253 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

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

Month Insider buying / shares Insider selling / shares
March 2014 2,000 0
February 2014 1,253 0
January 2014 765 0
December 2013 25,077 0
November 2013 9,787 0
October 2013 30,833 550
September 2013 0 0
August 2013 0 0
July 2013 86,500 0
June 2013 0 0
May 2013 370 0
April 2013 0 0
March 2013 84,312 0
February 2013 399 0
January 2013 2,960 1,430
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There have been 244,256 shares purchased, and there have been 1,980 shares sold by insiders since January 2013.

Financials

Pembina reported the full-year 2013 financial results on February 26 with the following highlights:

Revenue $5.1 billion
Net income $357.7 million
Net debt $2.3 billion
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The four insiders purchased their shares after this report.

Competition

Pembina's competitors include TransCanada (NYSE:TRP), and Enbridge (NYSE:ENB). Here is a table comparing these companies.

Company PBA TRP ENB
Market Cap: 12.26B 31.76B 36.73B
Employees: 758 5,551 8,607
Qtrly Rev Growth (yoy): 0.03 0.12 N/A
Revenue: 5.12B 8.97B 33.55B
Gross Margin: N/A 0.55 0.19
EBITDA: 846.91M 4.44B 2.74B
Operating Margin: 0.13 0.33 0.04
Net Income: 357.72M 1.74B 450.46M
EPS: 1.14 2.47 0.56
P/E: 31.79 18.23 78.33
PEG (5 yr expected): -7.54 1.60 3.61
P/S: 2.39 3.55 1.10
Dividend Yield: 4.17% 3.85% 2.87%
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Pembina has the highest dividend yield among these three companies.

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(Source: Investor presentation)

Here is a table of these competitors' insider activities this year.

Company Insider buying / shares Insider selling / shares
TRP 27 162,792
ENB 0 104,500
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Only Pembina has seen intensive insider buying during the last 30 days.

Conclusion

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

The four insiders purchased their shares at prices ranging from $35.98 (C$39.58) to $36.49 (C$40.14). I believe Pembina could be a good pick below $36 based on the intensive insider buying.

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