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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.

(click to enlarge)

Insider buying during the last 30 days

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

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
Scott SchweinfurthCFOMay 1220,00020,000 sharesfrom 0 to 20,000
David KennedyCEOMay 1236,000147,534 shares+32.3%
Ronald PerelmanDirectorMay 9-121,050,00033,594,250 shares+3.2%

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.

MonthInsider buying / sharesInsider selling / shares
May 20141,106,0000
April 201400
March 2014020,904
February 201400
January 201400
December 201300
November 201300
October 201300
September 201300
August 201305,000
July 201300
June 201300
May 201300
April 201300
March 201300
February 201300
January 201300

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

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.

CompanySGMSGTKYYIGT
Market Cap:856.49M4.99B3.12B
Employees:5,2008,4465,000
Qtrly Rev Growth (yoy):0.77-0.02-0.14
Revenue:1.26B4.22B2.27B
Gross Margin:0.490.540.57
EBITDA:282.50M1.39B707.10M
Operating Margin:0.030.180.22
Net Income:-58.30M243.23M234.20M
P/E:N/A20.4613.83
PEG (5 yr expected):N/AN/A0.71
P/S:0.661.181.39

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.

CompanyInsider buying / sharesInsider selling / shares
GTKYYN/AN/A
IGT06,086

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.

Source: Scientific Games: 3 Different Insiders Have Purchased Shares This Month