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Summary

  • Three insiders purchased Dominion Diamond 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%.

Dominion Diamond Corporation (NYSE:DDC) engages in the mining and marketing of rough diamonds. The company operates the Ekati Diamond Mine (in which it owns an 80% controlling interest, as well as a 58.8% in the surrounding areas containing additional resources), and also owns 40% of the Diavik Diamond Mine.

(click to enlarge)

Insider buying during the last 30 days

Here is a table of Dominion Diamond's insider activity during the last 30 days.

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
Graham ClowDirectorApril 142,5002,500 sharesfrom 0 to 2,500
Thomas KennyDirectorApril 8-1034,12934,129 sharesfrom 0 to 34,129
Chuck StrahlDirectorApril 113,4683,468 sharesfrom 0 to 3,468

There have been 40,097 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Dominion Diamond's insider activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
April 201440,0970
March 201400
February 201400
January 201400
December 201300
November 201300
October 20133,0000
September 201300
August 201300
July 201300
June 201300
May 201300
April 201300
March 201300
February 201300
January 201300

There have been 43,097 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

Dominion Diamond reported the fiscal 2014 full-year, which ended January 31, financial results on April 2 with the following highlights:

Revenue$751.9 million
Net loss$23.0 million
Cash$224.8 million
Debt$4.3 million

The three insiders purchased their shares after these results.

(click to enlarge)

(Source: Investor presentation)

Outlook

The mine plan for calendar 2014 foresees Diavik Diamond Mine production (on a 100% basis) of approximately 6.1 million carats from the mining and processing of approximately 1.9 million tonnes of ore.

In fiscal 2015, the Ekati Diamond Mine expects to process (on a 100% basis) approximately 2.6 million tonnes from the mineral reserve and produce approximately 0.9 million carats.

(click to enlarge)

(Source: Investor presentation)

Competition

Dominion Diamond's competitors include Mountain Province Diamonds (NASDAQ:MDM), and Petra Diamonds (OTC:PDMDF). Here is a table comparing these companies.

CompanyDDCMDMPDMDF
Market Cap:1.09B467.33M1.31B
Employees:N/AN/A5,139
Qtrly Rev Growth (yoy):1.12N/A0.19
Revenue:751.94MN/A431.90M
Gross Margin:0.13N/AN/A
EBITDA:167.86M-27.00M157.72M
Operating Margin:0.04N/A0.27
Net Income:-22.98M-27.11M65.60M
EPS:5.64-0.290.12
P/E:2.23N/A20.65
PEG (5 yr expected):0.78N/AN/A
P/S:1.44N/A3.02
P/B:0.835.072.30

Dominion Diamond has the lowest P/B ratio among these three companies.

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

CompanyInsider buying / sharesInsider selling / shares
MDM1,187,3770
PDMDFN/AN/A

Only Dominion Diamond has seen intensive insider buying during the last 30 days.

Conclusion

There have been three different insiders buying Dominion Diamond, and there have not been any insiders selling Dominion Diamond during the last 30 days. All three of these insiders increased their holdings by more than 10%. Dominion Diamond has an insider ownership of 4.99%.

The three insiders purchased their shares at prices ranging from $13.00 (C$14.30) to $13.32 (C$14.65). I believe Dominion Diamond could be a good pick below $13.32 based on the intensive insider buying.

(click to enlarge)

(Source: Investor presentation)

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

Source: Dominion Diamond: 3 Different Insiders Have Purchased Shares This Month