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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.

(click to enlarge)

Insider buying during the last 30 days

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

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
Patricia JacobsenDirectorMarch 273,06024,770 shares+14.1%
Wayne JosephEVPMarch 2552517,463 shares+3.1%
Wayne McLeodDirectorMarch 242,30024,500 shares+10.4%
Brian TobinChairmanMarch 2530,00084,700 shares+54.8%

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.

MonthInsider buying / sharesInsider selling / shares
March 201435,8850
February 201440
January 201440
December 201340
November 201340
October 201340
September 2013134,40340,402
August 201352,4910
July 201330
June 20136,435,60835,000
May 201340
April 201340
March 201372,814184,200
February 201340
January 201340

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

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.

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