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Summary

  • Three insiders purchased Cervus Equipment stock within one month.
  • The stock was sold by no insiders in the month of intensive purchasing.
  • Two of these three insiders increased their holdings by more than 10%.

Cervus Equipment Corporation (OTC:CSQPF) sells and services new and used agricultural, turf, construction, industrial, and transportation equipment.

(click to enlarge)

Insider buying during the last 30 days

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

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
Larry BenkeDirectorMarch 312,0002,000 sharesfrom 0 to 2,000
Gary Wayne HarrisDirectorApril 2200122,059 shares+0.2%
Angela LekatsasDirectorApril 42,2002,200 sharesfrom 0 to 2,200

There have been 4,400 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

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

MonthInsider buying / sharesInsider selling / shares
April 20142,4000
March 20142,0000
February 201400
January 201400
December 201300
November 201300
October 201300
September 201302,000
August 201301,000
July 201304,000
June 201300
May 20131,4000
April 20138000
March 20133000
February 20136,0000
January 201300

There have been 12,900 shares purchased, and there have been 7,000 shares sold by insiders since January 2013.

Financials

Cervus Equipment reported the full-year 2013 financial results on March 12 with the following highlights:

RevenueC$899.8 million
Net incomeC$23.1 million
CashC$14.7 million
DebtC$150.6 million

The three insiders purchased their shares after these results.

Competition

Cervus Equipment's competitors include Titan Machinery (NASDAQ:TITN), and Rocky Mountain Dealerships (OTCQX:RCKXF). Here is a table comparing these companies.

CompanyCSQPFTITNRCKXF
Market Cap:296.93M310.99M198.87M
Employees:1,2712,447950
Qtrly Rev Growth (yoy):0.230.01-0.03
Revenue:917.03M2.30B1.03B
Gross Margin:0.180.150.13
EBITDA:47.20M98.39M42.26M
Operating Margin:0.040.030.03
Net Income:23.53M24.55M15.61M
EPS:1.511.160.81
P/E:13.1012.8412.65
PEG (5 yr expected):N/A1.39N/A
P/S:0.320.140.19

Cervus Equipment has the fastest revenue growth among these three companies.

Here is a table of these competitors' insider activities during the last six months.

CompanyInsider buying / sharesInsider selling / shares
TITN00
RCKXF1,000163,067

Only Cervus Equipment has seen intensive insider buying during the last 30 days.

Conclusion

There have been three different insiders buying Cervus Equipment, and there have not been any insiders selling Cervus Equipment during the last 30 days. Two of these three insiders increased their holdings by more than 10%. Cervus Equipment has an insider ownership of ~30%.

(click to enlarge)

(Source: Investor presentation)

The three insiders purchased their shares at prices ranging from $19.72 (C$21.50) to $20.52 (C$22.37). I believe Cervus Equipment could be a good pick below $20.52 based on the intensive insider buying.

(click to enlarge)

(Source: Investor presentation)

Source: Cervus Equipment: 3 Different Insiders Have Purchased Shares During The Last 30 Days