GrafTech International: 4 Different Insiders Have Purchased Shares This Month

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 |  About: Brookfield Asset Management Inc. (BAM)
by: Markus Aarnio

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 (GTI) manufactures and sells graphite and carbon material science-based solutions.

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Insider buying during the last 30 days

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

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Ferrell McClean Director April 25 21,800 113,384 shares +23.8%
Steven Shawley Director April 25 22,023 72,850 shares +43.3%
Randy Carson Director April 25 10,000 59,908 shares +20.0%
Mary Cranston Director April 25 22,100 79,040 shares +38.8%
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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.

Month Insider buying / shares Insider selling / shares
April 2014 75,923 0
March 2014 0 0
February 2014 0 0
January 2014 0 15,000
December 2013 0 0
November 2013 0 56,000
October 2013 0 0
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 0 0
May 2013 0 0
April 2013 0 0
March 2013 54,000 0
February 2013 0 0
January 2013 0 12,800
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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
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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
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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.

Company GTI SGLFF
Market Cap: 1.49B 2.27B
Employees: 3,034 6,284
Qtrly Rev Growth (yoy): -0.17 N/A
Revenue: 1.17B 1.91B
Gross Margin: 0.12 0.26
EBITDA: 158.20M 105.78M
Operating Margin: 0.05 0.00
Net Income: -27.26M -472.82M
EPS: -0.20 -7.24
PEG (5 yr expected): 4.12 N/A
P/S: 1.29 1.18
P/B: 1.14 2.67
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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.

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