New Flyer Industries: 4 Different Insiders Have Purchased Shares This Month

Mar.30.14 | About: New Flyer (NFYEF)

Summary

Four insiders purchased New Flyer 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%.

New Flyer Industries (OTC:NFYEF) engages in the manufacture and sale of heavy-duty transit buses for public transportation in the United States and Canada.

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Insider buying during the last 30 days

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

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Patricia Jacobsen Director March 27 3,060 24,770 shares +14.1%
Wayne Joseph EVP March 25 525 17,463 shares +3.1%
Wayne McLeod Director March 24 2,300 24,500 shares +10.4%
Brian Tobin Chairman March 25 30,000 84,700 shares +54.8%
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There have been 35,885 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

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

Month Insider buying / shares Insider selling / shares
March 2014 35,885 0
February 2014 4 0
January 2014 4 0
December 2013 4 0
November 2013 4 0
October 2013 4 0
September 2013 134,403 40,402
August 2013 52,491 0
July 2013 3 0
June 2013 6,435,608 35,000
May 2013 4 0
April 2013 4 0
March 2013 72,814 184,200
February 2013 4 0
January 2013 4 0
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There have been 6,731,240 shares purchased, and there have been 259,602 shares sold by insiders since January 2013.

Financials

New Flyer reported the full-year 2013 financial results on March 19 with the following highlights:

Revenue $1.2 billion
Net income $26.8 million
Cash $11.9 million
Debt $239.1 million
Backlog $3.7 billion
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The four insiders purchased their shares after these results.

Outlook

New Flyer's management anticipates that 2014 first-quarter adjusted EBITDA will be significantly less than 2013 fourth quarter (and is likely to be lower than 2013 first-quarter adjusted EBITDA) as a result of several factors, including the number of deliveries in the quarter is expected to be approximately 100 EUs lower than the 635 EUs delivered in 2013 fourth quarter and the impact of lower margins due to the competitive bidding environment.

Competition

The competitive landscape of the industry in the United States and Canada is limited to three major competitors: New Flyer, Gillig Corporation, and NOVA Bus Inc.

Gillig is privately owned and Nova Bus has been owned by Volvo Bus Corporation (OTCPK:VOLVY) since 2004. New Flyer's market share is 43%.

Conclusion

There have been four different insiders buying New Flyer, and there have not been any insiders selling New Flyer 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 $10.05 (C$11.16) to $10.30 (C$11.43). I believe New Flyer could be a good pick below $10.30 based on the intensive insider buying.

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