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

Apr. 8.14 | About: Cervus Equipment (CSQPF)

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.

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Insider buying during the last 30 days

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

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Larry Benke Director March 31 2,000 2,000 shares from 0 to 2,000
Gary Wayne Harris Director April 2 200 122,059 shares +0.2%
Angela Lekatsas Director April 4 2,200 2,200 shares from 0 to 2,200
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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.

Month Insider buying / shares Insider selling / shares
April 2014 2,400 0
March 2014 2,000 0
February 2014 0 0
January 2014 0 0
December 2013 0 0
November 2013 0 0
October 2013 0 0
September 2013 0 2,000
August 2013 0 1,000
July 2013 0 4,000
June 2013 0 0
May 2013 1,400 0
April 2013 800 0
March 2013 300 0
February 2013 6,000 0
January 2013 0 0
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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:

Revenue C$899.8 million
Net income C$23.1 million
Cash C$14.7 million
Debt C$150.6 million
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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.

Company CSQPF TITN RCKXF
Market Cap: 296.93M 310.99M 198.87M
Employees: 1,271 2,447 950
Qtrly Rev Growth (yoy): 0.23 0.01 -0.03
Revenue: 917.03M 2.30B 1.03B
Gross Margin: 0.18 0.15 0.13
EBITDA: 47.20M 98.39M 42.26M
Operating Margin: 0.04 0.03 0.03
Net Income: 23.53M 24.55M 15.61M
EPS: 1.51 1.16 0.81
P/E: 13.10 12.84 12.65
PEG (5 yr expected): N/A 1.39 N/A
P/S: 0.32 0.14 0.19
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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.

Company Insider buying / shares Insider selling / shares
TITN 0 0
RCKXF 1,000 163,067
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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%.

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(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.

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(Source: Investor presentation)

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