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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.

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
Elizabeth IselyEVPMay 710,0001,264,306
shares
+0.8%
Edward CerkovnikDirectorMay 73,5003,500 sharesfrom 0 to 3,500
Kemper IselyChairmanMay 610,0003,107,402 shares+0.3%
Richard HalleDirectorMay 64,00010,064 shares+66.0%

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.

MonthInsider buying / sharesInsider selling / shares
May 201427,5000
April 201400
March 2014024,682
February 201400
January 2014017,757
December 201303,850
November 20130926
October 2013013,717
September 2013023,750
August 201300
July 201300
June 201300
May 201300
April 201300
March 20132,5000
February 201307,947
January 201300

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

The four insiders purchased their shares after these results.

Outlook

Natural Grocers' fiscal 2014 guidance is as follows:

Comparable store sales growth5.5% to 6.5%
EPS$0.58 to $0.63

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.

CompanyNGVCTFMSFMWFM
Market Cap:509.53M1.55B3.88B14.48B
Employees:1,6487,20014,00083,000
Qtrly Rev Growth (yoy):0.220.150.270.10
Revenue:479.26M1.51B2.44B13.60B
Gross Margin:0.290.340.300.36
EBITDA:39.45M165.76M189.09M1.28B
Operating Margin:0.050.070.060.07
Net Income:12.03M50.81M51.33M563.00M
EPS:0.541.050.371.50
P/E:42.2930.5070.9725.99
PEG (5 yr expected):1.301.201.601.87
P/S:1.061.031.661.06

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

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

CompanyInsider buying / sharesInsider selling / shares
TFM31,0000
SFM010,529,380
WFM089,977

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.

Source: Natural Grocers: 4 Different Insiders Have Purchased Shares This Month