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Summary

  • Four insiders purchased GrafTech stock within one month.
  • The stock was sold by no insiders in the month of intensive purchasing.
  • All 4 of these insiders increased their holdings by more than 10%.

GrafTech International (NYSE:GTI) manufactures and sells graphite and carbon material science-based solutions.

(click to enlarge)

Insider buying during the last 30 days

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

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
Ferrell McCleanDirectorApril 2521,800113,384 shares+23.8%
Steven ShawleyDirectorApril 2522,02372,850 shares+43.3%
Randy CarsonDirectorApril 2510,00059,908 shares+20.0%
Mary CranstonDirectorApril 2522,10079,040 shares+38.8%

There have been 75,923 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

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

MonthInsider buying / sharesInsider selling / shares
April 201475,9230
March 201400
February 201400
January 2014015,000
December 201300
November 2013056,000
October 201300
September 201300
August 201300
July 201300
June 201300
May 201300
April 201300
March 201354,0000
February 201300
January 2013012,800

There have been 129,923 shares purchased, and there have been 83,800 shares sold by insiders since January 2013. The month of April 2014 has seen the most insider buying.

Financials

GrafTech reported the first-quarter financial results on April 24 with the following highlights:

Revenue$280.8 million
Net loss$11.5 million
Cash$17.3 million
Debt$554.7 million

The four insiders purchased their shares after these results.

Outlook

GrafTech's 2014 guidance is as follows:

EBITDA$150-$180 million
Cash flow$150-$180 million
CapEx$100-$110 million

GrafTech's second-quarter EBITDA guidance is $30-$40 million.

Competition

GrafTech's competitors include SGL Carbon SE (OTCPK:SGLFF). Here is a table comparing these two companies.

CompanyGTISGLFF
Market Cap:1.49B2.27B
Employees:3,0346,284
Qtrly Rev Growth (yoy):-0.17N/A
Revenue:1.17B1.91B
Gross Margin:0.120.26
EBITDA:158.20M105.78M
Operating Margin:0.050.00
Net Income:-27.26M-472.82M
EPS:-0.20-7.24
PEG (5 yr expected):4.12N/A
P/S:1.291.18
P/B:1.142.67

GrafTech is trading at a lower P/B ratio than SGL Carbon SE.

Conclusion

There have been four different insiders buying GrafTech, and there have not been any insiders selling GrafTech during the last 30 days. All four of these insiders increased their holdings by more than 10%. GrafTech has an insider ownership of 12.77%.

The four insiders purchased their shares at prices ranging from $11.15 to $11.39. I believe GrafTech could be a good pick below $11.39 based on the intensive insider buying.

Source: GrafTech International: 4 Different Insiders Have Purchased Shares This Month