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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.

(click to enlarge)

Insider buying during the last 30 days

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

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
Richard KnowlesDirectorMay 156,6006,600 sharesfrom 0 to 6,600
Vincent SardoDirectorMay 295,00025,000 shares+25.0%
Janet WoodruffDirectorMay 153,7003,700 sharesfrom 0 to 3,700

(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.

MonthInsider buying / sharesInsider selling / shares
May 201415,3000
April 201400
March 201400
February 201400
January 201400
December 201300
November 201300
October 201300
September 201300
August 201300
July 201325,0000
June 201300
May 201315,0000
April 201300
March 201300
February 201300
January 201300

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:

RevenueC$114.4 million
Adjusted EBITDAC$41.7 million
Net incomeC$19.5 million
CashC$67.3 million
DebtC$768.1 million

The three insiders purchased their shares after these results.

(click to enlarge)

(Source: Earnings presentation)

Outlook

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

(click to enlarge)

(Source: Earnings presentation)

Competition

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

CompanyMCQPFAQUNFBEP
Market Cap:394.69M1.53B7.55B
Qtrly Rev Growth (yoy):0.210.780.10
Revenue:377.85M761.42M1.76B
EBITDA:170.49M212.32M1.19B
Operating Margin:0.290.150.37
Net Income:36.79M53.75M76.00M
EPS:0.390.080.29
P/E:10.4993.6399.52
P/S:1.042.024.48
Dividend Yield:6.7%4.2%5.4%

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.

CompanyInsider buying / sharesInsider selling / shares
AQUNF00
BEP1,0007,900

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.

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

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