Blue Capital Reinsurance: 3 Different Insiders Have Purchased Shares During The Last 30 Days

Apr. 1.14 | About: Blue Capital (BCRH)

Summary

Three insiders purchased Blue Capital Reinsurance 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%.

Blue Capital Reinsurance Holdings (NYSE:BCRH) offers collateralized reinsurance in the property catastrophe market.

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Insider buying during the last 30 days

Here is a table of Blue Capital Reinsurance's insider activity during the last 30 days.

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Eric Lemieux Director March 31 2,500 2,500 shares from 0 to 2,500
Christopher Harris Director March 27 5,000 5,000 shares from 0 to 5,000
William Pollett CEO March 12-13 14,500 14,500 shares from 0 to 14,500
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There have been 22,000 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Blue Capital Reinsurance's insider activity by calendar month.

Month Insider buying / shares Insider selling / shares
March 2014 22,000 0
February 2014 0 0
January 2014 0 0
December 2013 0 0
November 2013 2,500,000 51,000
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There have been 2,522,000 shares purchased, and there have been 51,000 shares sold by insiders since November 2013. Blue Capital Reinsurance had its IPO in November 2013.

Financials

Blue Capital Reinsurance reported the full-year 2013 (from June 24 to December 31) financial results on February 5 with the following highlights:

Net loss $0.7 million
Cash $173.8 million
Debt $0
Book value $19.80 per share
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The three insiders purchased their shares after these results.

Competition

Blue Capital Reinsurance's competitors include PartnerRe Ltd. (NYSE:PRE), RenaissanceRe Holdings (NYSE:RNR), and Validus Holdings (NYSE:VR). Here is a table comparing these companies.

Company BCRH PRE RNR VR
Market Cap: 152.16M 5.35B 4.07B 3.52B
Employees: N/A 1,112 285 571
Qtrly Rev Growth (yoy): N/A 0.25 0.19 0.12
Revenue: N/A 5.54B 1.38B 2.16B
Gross Margin: N/A 0.24 0.78 0.46
EBITDA: N/A 860.51M 908.65M 663.05M
Operating Margin: N/A 0.15 0.62 0.31
Net Income: -1.40M 597.01M 653.73M 513.45M
EPS: -0.61 10.58 14.88 4.94
P/E: N/A 9.78 6.56 7.63
PEG (5 yr expected): N/A 2.95 1.24 0.52
P/S: N/A 0.95 2.93 1.61
P/B: 0.87 0.80 1.21 0.96
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Blue Capital Reinsurance has the second-lowest P/B ratio among these four companies.

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

Company Insider buying / shares Insider selling / shares
PRE 0 0
RNR 0 46,257
VR 0 32,859
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Only Blue Capital Reinsurance has seen intensive insider buying during the last 30 days.

Conclusion

There have been three different insiders buying Blue Capital Reinsurance, and there have not been any insiders selling Blue Capital Reinsurance during the last 30 days. All three of these insiders increased their holdings by more than 10%.

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(Source: Investor presentation)

The three insiders purchased their shares at prices ranging from $16.91 to $17.30. I believe Blue Capital Reinsurance could be a good pick below $17.30 based on the intensive insider buying.

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(Source: Investor presentation)

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