Big Rock Brewery: 6 Different Insiders Have Purchased Shares This Month

Apr.14.14 | About: Big Rock (BRBMF)

Summary

Six insiders purchased Big Rock Brewery stock within one month.

The stock was sold by no insiders in the month of intensive purchasing.

Four of these six insiders increased their holdings by more than 10%.

Big Rock Brewery (OTCPK:BRBMF) produces, markets, and distributes craft beers and cider in Canada. It provides a selection of eight ales and lagers, dry apple cider, and various seasonal beers.

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Insider buying during the last 30 days

Here is a table of Big Rock Brewery's insider activity during the last 30 days.

Name Title Trade Date Shares Purchased Prospectus Current Ownership Increase In Shares
Barbara Feit CFO April 10 1,000 Yes 1,000 shares from 0 to 1,000
Kathleen McNally-Leitch Director April 10 9,000 Yes 242,086 shares +3.9%
Jay Peters Director April 10 1,000 Yes 1,250 shares +400.0%
Robert Peters Director April 10 10,000 Yes 230,000 shares +4.5%
Clayton Riddell 10% Owner April 8-10 74,200 Yes and No 723,700 shares +11.4%
Robert Sartor CEO April 10 4,000 Yes 9,000 shares +80.0%
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There have been 99,200 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Big Rock Brewery's insider activity by calendar month.

Month Insider buying / shares Insider selling / shares
April 2014 99,200 0
March 2014 0 0
February 2014 0 0
January 2014 0 0
December 2013 0 0
November 2013 0 0
October 2013 0 0
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 0 0
May 2013 10,000 0
April 2013 0 0
March 2013 0 0
February 2013 0 0
January 2013 0 0
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There have been 109,200 shares purchased, and there have been zero shares sold by insiders since January 2013. The month of April 2014 has seen the most insider buying.

Financials

Big Rock Brewery reported the full-year 2013 financial results on March 17 with the following highlights:

Revenue C$41.6 million
Net income C$2.6 million
Cash C$2.3 million
Debt C$0
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On April 10, Big Rock Brewery closed a C$11.8 million financing.

Competition

Big Rock Brewery's competitors include Boston Beer (NYSE:SAM) and Craft Brew Alliance (NASDAQ:BREW). Here is a table comparing these companies.

Company BRBMF SAM BREW
Market Cap: 102.69M 2.99B 270.35M
Employees: 120 1,120 507
Qtrly Rev Growth (yoy): -0.11 0.34 0.05
Revenue: 42.38M 739.05M 179.18M
Gross Margin: 0.51 0.52 0.28
EBITDA: 6.94M 140.56M 11.96M
Operating Margin: 0.09 0.16 0.02
Net Income: 2.60M 69.88M 1.96M
EPS: 0.43 5.18 0.10
P/E: 39.50 45.28 142.50
PEG (5 yr expected): N/A 3.66 2.86
P/S: 2.42 4.08 1.51
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Big Rock Brewery has the lowest P/E ratio among these three companies.

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

Company Insider buying / shares Insider selling / shares
SAM 205 184,949
BREW 500 116,245
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Only Big Rock Brewery has seen intensive insider buying during the last 30 days.

Conclusion

There have been six different insiders buying Big Rock Brewery, and there have not been any insiders selling Big Rock Brewery during the last 30 days. Four of these six insiders increased their holdings by more than 10%.

The six insiders purchased their shares at prices ranging from $15.09 (C$16.60) to $15.45 (C$17.00). I believe Big Rock Brewery could be a good pick below $15.45 based on the intensive insider buying.

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