Seeking Alpha
Long/short equity, insider ownership
Profile| Send Message|
( followers)  

Summary

  • 3 insiders purchased Dominion 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%.

Dominion Resources (NYSE:D) engages in producing and transporting energy in the United States.

(click to enlarge)

Insider buying during the last 30 days

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

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
Helen DragasDirectorMay 213,62437,613 shares+10.7%
Michele CardiffVPMay 72959,138 shares+3.3%
Michael SzymanczykDirectorMay 55,0008,979 shares+125.7%

There have been 8,919 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Dominion's insider activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
May 20148,9190
April 201400
March 201400
February 20143,6000
January 201400
December 201300
November 20133,2490
October 201300
September 201300
August 20138640
July 201300
June 20132860
May 20133355,000
April 2013030,000
March 201300
February 201300
January 201300

There have been 17,253 shares purchased and there have been 35,000 shares sold by insiders since January 2013. The month of May 2014 has seen the most insider buying.

Financials

Dominion reported the first-quarter financial results on April 30 with the following highlights:

Revenue$3.6 billion
Net income$379 million
Cash$228 million
Debt$23.3 billion

The three insiders purchased their shares after these results.

(click to enlarge)

(Source: Earnings presentation)

Outlook

Dominion expects second-quarter 2014 operating earnings in the range of 55 cents to 65 cents per share.
(click to enlarge)

(Source: Earnings presentation)

Competition

Dominion's competitors include American Electric Power (NYSE:AEP), CenterPoint Energy (NYSE:CNP), and NiSource (NYSE:NI). Here is a table comparing these companies.

CompanyDAEPCNPNI
Market Cap:39.74B25.58B10.29B11.67B
Employees:14,50018,5218,5918,477
Qtrly Rev Growth (yoy):0.030.220.330.30
Revenue:13.23B16.18B8.88B6.20B
Gross Margin:0.380.370.260.34
EBITDA:4.64B5.29B1.92B1.72B
Operating Margin:0.240.210.110.19
Net Income:1.67B1.68B349.00M541.30M
EPS:2.723.440.811.72
P/E:25.1315.2529.5621.59
PEG (5 yr expected):3.203.187.412.12
P/S:3.011.601.161.89

Dominion has the highest gross margin among these four companies.

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

CompanyInsider buying / sharesInsider selling / shares
AEP048,021
CNP010,333
NI065,146

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

Conclusion

There have been three different insiders buying Dominion, and there have not been any insiders selling Dominion during the last 30 days. Two of these three insiders increased their holdings by more than 10%. Dominion has an insider ownership of 0.41%.

The three insiders purchased their shares at prices ranging from $68.99 to $70.97. I believe Dominion could be a good pick below $70.97 based on the intensive insider buying.

Source: Dominion Resources: 3 Different Insiders Have Purchased Shares This Month