Capstone Infrastructure: 3 Different Insiders Have Purchased Shares During The Last 30 Days

Summary

3 insiders purchased Capstone Infrastructure stock within one month.

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

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

Capstone Infrastructure Corporation (OTCPK:MCQPF) develops, acquires, and manages a portfolio of utilities, power, and transportation infrastructure businesses in Canada and internationally.

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Insider buying during the last 30 days

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

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Richard Knowles Director May 15 6,600 6,600 shares from 0 to 6,600
Vincent Sardo Director May 29 5,000 25,000 shares +25.0%
Janet Woodruff Director May 15 3,700 3,700 shares from 0 to 3,700
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(Note: François Roy, director, also purchased 10,100 common shares and sold 1,600 preferred shares on May 15)
There have been 15,300 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

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

Month Insider buying / shares Insider selling / shares
May 2014 15,300 0
April 2014 0 0
March 2014 0 0
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 0
July 2013 25,000 0
June 2013 0 0
May 2013 15,000 0
April 2013 0 0
March 2013 0 0
February 2013 0 0
January 2013 0 0
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There have been 55,300 shares purchased and there have been zero shares sold by insiders since January 2013.

Financials

Capstone Infrastructure reported the first-quarter financial results on May 12 with the following highlights:

Revenue C$114.4 million
Adjusted EBITDA C$41.7 million
Net income C$19.5 million
Cash C$67.3 million
Debt C$768.1 million
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The three insiders purchased their shares after these results.

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(Source: Earnings presentation)

Outlook

Capstone Infrastructure expects 2014 adjusted EBITDA to be between C$150 million to C$160 million.

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(Source: Earnings presentation)

Competition

Capstone Infrastructure's competitors include Algonquin Power & Utilities Corp. (AQUNF) and Brookfield Renewable Energy Partners LP (NYSE:BEP). Here is a table comparing these companies.

Company MCQPF AQUNF BEP
Market Cap: 394.69M 1.53B 7.55B
Qtrly Rev Growth (yoy): 0.21 0.78 0.10
Revenue: 377.85M 761.42M 1.76B
EBITDA: 170.49M 212.32M 1.19B
Operating Margin: 0.29 0.15 0.37
Net Income: 36.79M 53.75M 76.00M
EPS: 0.39 0.08 0.29
P/E: 10.49 93.63 99.52
P/S: 1.04 2.02 4.48
Dividend Yield: 6.7% 4.2% 5.4%
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Capstone Infrastructure 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
AQUNF 0 0
BEP 1,000 7,900
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Only Capstone Infrastructure has seen intensive insider buying during the last 30 days.

Conclusion

There have been three different insiders buying Capstone Infrastructure, and there have not been any insiders selling Capstone Infrastructure during the last 30 days. All three of these insiders increased their holdings by more than 10% each.

The three insiders purchased their shares at prices ranging from $3.79 (C$4.11) to $4.06 (C$4.40). I believe Capstone Infrastructure could be a good pick below $4.06 based on the intensive insider buying.

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

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.