Parallel Energy Trust: 3 Different Insiders Have Purchased Shares During The Last 30 Days

Apr.16.14 | About: Parallel Energy (PEYTF)

Summary

Three insiders purchased Parallel Energy Trust 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%.

Parallel Energy Trust (OTC:PEYTF) is a mutual fund trust established under the laws of Alberta, Canada. The trust's goal is to provide a stable and consistent monthly return for its investors through the production, development, and acquisition of conventional oil and natural gas reserves in certain regions of the United States.

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Insider buying during the last 30 days

Here is a table of Parallel Energy Trust's insider activity during the last 30 days.

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Richard Alexander CEO Mar 24-Apr 14 20,000 200,000 shares +11.1%
Francis James Director March 27 7,500 22,500 shares +50.0%
Henry Sykes Director April 7 5,000 145,207 shares +3.6%
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There have been 32,500 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Parallel Energy Trust's insider activity by calendar month.

Month Insider buying / shares Insider selling / shares
April 2014 20,000 0
March 2014 12,500 0
February 2014 0 0
January 2014 12,400 0
December 2013 54,100 0
November 2013 13,000 0
October 2013 12,500 0
September 2013 35,000 0
August 2013 25,000 0
July 2013 0 0
June 2013 25,000 0
May 2013 60,000 0
April 2013 0 0
March 2013 0 0
February 2013 0 0
January 2013 7,500 0
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There have been 277,000 shares purchased, and there have been zero shares sold by insiders since January 2013.

Financials

Parallel Energy Trust reported the full-year 2013 financial results on March 20 with the following highlights:

Revenue C$93.4 million
Funds from operations C$42.0 million
Net income C$10.1 million
Net debt C$216.9 million
Production 7,147 boe/d
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The three insiders purchased their shares after these results.

Outlook

Parallel Energy Trust's 2014 guidance is as follows:

Production 7,100-7,300 boe/d
Cash flow $46 million
Total payout ratio less than 100%
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(Source: Investor presentation)

Competition

Parallel Energy Trust's competitors include Argent Energy Trust (OTC:ANGYF), and Eagle Energy Trust (ENYTF). Here is a table comparing these companies.

Company PEYTF ANGYF ENYTF
Market Cap: 211.82M 153.50M 190.27M
Qtrly Rev Growth (yoy): 0.22 1.19 0.07
Revenue: 90.73M 120.78M 72.58M
EBITDA: 49.87M 60.46M 44.03M
Operating Margin: 0.24 -0.77 0.17
Net Income: 10.28M -88.90M 5.01M
EPS: 0.17 -1.68 0.16
P/E: 23.67 N/A 35.83
P/S: 2.33 1.30 2.59
P/B: 0.72 0.37 0.78
Dividend Yield: 14.1% 8.8% 16.1%
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Parallel Energy Trust has the second-highest dividend yield among these three companies.

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

Company Insider buying / shares Insider selling / shares
ANGYF 20,000 0
ENYTF 2,500 3,500
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Only Parallel Energy Trust has seen intensive insider buying during the last 30 days.

Conclusion

There have been three different insiders buying Parallel Energy Trust, and there have not been any insiders selling Parallel Energy Trust during the last 30 days. Two of these three 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 $3.82 (C$4.20) to $3.95 (C$4.34). I believe Parallel Energy Trust could be a good pick below $3.95 based on the intensive insider buying.

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(Source: Investor presentation)

Disclosure: I am long PEYTF, ANGYF. 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.