Scientific Games: 3 Different Insiders Have Purchased Shares This Month

May.14.14 | About: Scientific Games (SGMS)

Summary

3 insiders purchased Scientific Games stock within one month.

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

2 of these 3 insiders increased their holdings by more than 10%.

Scientific Games Corporation (NASDAQ:SGMS) provides technology-based products and services, and associated content for gaming and lottery markets worldwide.

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Insider buying during the last 30 days

Here is a table of Scientific Games' insider activity during the last 30 days.

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Scott Schweinfurth CFO May 12 20,000 20,000 shares from 0 to 20,000
David Kennedy CEO May 12 36,000 147,534 shares +32.3%
Ronald Perelman Director May 9-12 1,050,000 33,594,250 shares +3.2%
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There have been 1,106,000 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Scientific Games' insider activity by calendar month.

Month Insider buying / shares Insider selling / shares
May 2014 1,106,000 0
April 2014 0 0
March 2014 0 20,904
February 2014 0 0
January 2014 0 0
December 2013 0 0
November 2013 0 0
October 2013 0 0
September 2013 0 0
August 2013 0 5,000
July 2013 0 0
June 2013 0 0
May 2013 0 0
April 2013 0 0
March 2013 0 0
February 2013 0 0
January 2013 0 0
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There have been 1,106,000 shares purchased and there have been 25,904 shares sold by insiders since January 2013. The month of May 2014 has seen all of the insider buying.

Financials

Scientific Games reported the first-quarter financial results on May 8 with the following highlights:

Revenue $388.1 million
Net loss $45.0 million
Cash $169.1 million
Debt $3.2 billion
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The three insiders purchased their shares after these results.

Competition

Scientific Games' competitors include Gtech S.p.A. (OTCPK:GTKYY) and International Game Technology (NYSE:IGT). Here is a table comparing these companies.

Company SGMS GTKYY IGT
Market Cap: 856.49M 4.99B 3.12B
Employees: 5,200 8,446 5,000
Qtrly Rev Growth (yoy): 0.77 -0.02 -0.14
Revenue: 1.26B 4.22B 2.27B
Gross Margin: 0.49 0.54 0.57
EBITDA: 282.50M 1.39B 707.10M
Operating Margin: 0.03 0.18 0.22
Net Income: -58.30M 243.23M 234.20M
P/E: N/A 20.46 13.83
PEG (5 yr expected): N/A N/A 0.71
P/S: 0.66 1.18 1.39
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Scientific Games has the lowest P/S ratio among these three companies.

Here is a table of these competitors' insider activities during the last six months.

Company Insider buying / shares Insider selling / shares
GTKYY N/A N/A
IGT 0 6,086
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Only Scientific Games has seen intensive insider buying during the last 30 days.

Conclusion

There have been three different insiders buying Scientific Games, and there have not been any insiders selling Scientific Games during the last 30 days. Two of these three insiders increased their holdings by more than 10%. Scientific Games has an insider ownership of 42.98%.

The three insiders purchased their shares at prices ranging from $8.97 to $9.09. I believe Scientific Games could be a good pick below $9.09 based on the intensive insider buying.

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