Natural Grocers: 4 Different Insiders Have Purchased Shares This Month

|
 |  About: Natural Grocers (NGVC), Includes: SFM, TFM, WFM
by: Markus Aarnio

Summary

4 insiders purchased Natural Grocers' stock within one month.

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

2 of these 4 insiders increased their holdings by more than 10%.

Natural Grocers by Vitamin Cottage (NYSE:NGVC) operates natural and organic grocery and dietary supplement stores in the United States.
Click to enlarge

Insider buying during the last 30 days

Here is a table of Natural Grocers' insider activity during the last 30 days.

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Elizabeth Isely EVP May 7 10,000 1,264,306
shares
+0.8%
Edward Cerkovnik Director May 7 3,500 3,500 shares from 0 to 3,500
Kemper Isely Chairman May 6 10,000 3,107,402 shares +0.3%
Richard Halle Director May 6 4,000 10,064 shares +66.0%
Click to enlarge

There have been 27,500 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Natural Grocers' insider activity by calendar month.

Month Insider buying / shares Insider selling / shares
May 2014 27,500 0
April 2014 0 0
March 2014 0 24,682
February 2014 0 0
January 2014 0 17,757
December 2013 0 3,850
November 2013 0 926
October 2013 0 13,717
September 2013 0 23,750
August 2013 0 0
July 2013 0 0
June 2013 0 0
May 2013 0 0
April 2013 0 0
March 2013 2,500 0
February 2013 0 7,947
January 2013 0 0
Click to enlarge

There have been 30,000 shares purchased, and there have been 92,629 shares sold by insiders since January 2013. The month of May 2014 has seen the most insider buying.

Financials

Natural Grocers reported the fiscal 2014 second-quarter, which ended March 31, financial results on May 1 with the following highlights:

Revenue $130.3 million
Net income $4.0 million
Cash $7.9 million
Debt $19.8 million
Click to enlarge

The four insiders purchased their shares after these results.

Outlook

Natural Grocers' fiscal 2014 guidance is as follows:

Comparable store sales growth 5.5% to 6.5%
EPS $0.58 to $0.63
Click to enlarge

The stock plunged after the earnings due to the weakened outlook.

Competition

Natural Grocers' competitors include The Fresh Market (NASDAQ:TFM), Sprouts Farmers Market (NASDAQ:SFM), and Whole Foods Market (NASDAQ:WFM). Here is a table comparing these companies.

Company NGVC TFM SFM WFM
Market Cap: 509.53M 1.55B 3.88B 14.48B
Employees: 1,648 7,200 14,000 83,000
Qtrly Rev Growth (yoy): 0.22 0.15 0.27 0.10
Revenue: 479.26M 1.51B 2.44B 13.60B
Gross Margin: 0.29 0.34 0.30 0.36
EBITDA: 39.45M 165.76M 189.09M 1.28B
Operating Margin: 0.05 0.07 0.06 0.07
Net Income: 12.03M 50.81M 51.33M 563.00M
EPS: 0.54 1.05 0.37 1.50
P/E: 42.29 30.50 70.97 25.99
PEG (5 yr expected): 1.30 1.20 1.60 1.87
P/S: 1.06 1.03 1.66 1.06
Click to enlarge

Natural Grocers has the second-lowest PEG ratio among these four companies.

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

Company Insider buying / shares Insider selling / shares
TFM 31,000 0
SFM 0 10,529,380
WFM 0 89,977
Click to enlarge

Only Natural Grocers has seen intensive insider buying during the last 30 days.

Conclusion

There have been four different insiders buying Natural Grocers, and there have not been any insiders selling Natural Grocers during the last 30 days. Two of these four insiders increased their holdings by more than 10%. Natural Grocers has an insider ownership of 60.17%.

The four insiders purchased their shares at prices ranging from $22.61 to $23.93. I believe Natural Grocers could be a good pick below $24 based on the intensive insider buying.

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