Quiksilver: 3 Different Insiders Have Purchased Shares This Month

Jun.10.14 | About: Quiksilver, Inc. (ZQK)

Summary

3 insiders purchased Quiksilver 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%.

Quiksilver (NYSE:ZQK) designs, develops, markets, and distributes branded apparel, footwear, accessories, and related products primarily for men, women, and children.

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Insider buying during the last 30 days

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

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Joseph Berardino Director June 9 10,000 90,000 shares +12.5%
Richard Shields CFO June 5 100,000 800,000 shares +14.3%
Andrew Mooney CEO June 5 100,000 2,100,000 shares +5.0%
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There have been 210,000 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

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

Month Insider buying / shares Insider selling / shares
June 2014 210,000 0
May 2014 0 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 40,000
September 2013 0 0
August 2013 0 0
July 2013 0 225,000
June 2013 0 0
May 2013 0 0
April 2013 0 0
March 2013 0 0
February 2013 0 0
January 2013 0 19,709
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There have been 210,000 shares purchased and there have been 284,709 shares sold by insiders since January 2013. The month of June 2014 has seen all of the insider buying.

Financials

Quiksilver reported the fiscal 2014 second-quarter, which ended April 30, financial results on June 2 with the following highlights:

Revenue $408.2 million
Net loss $53.1 million
Cash $63.5 million
Debt $896.8 million
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The stock plunged after these results and the three insiders purchased their shares after the plunge.

Outlook

Quiksilver anticipates some continued year-over-year gross margin improvements in the second half of fiscal 2014, and that pro-forma adjusted EBITDA for fiscal 2014 will be below the $118 million achieved in fiscal 2013.

Competition

Quiksilver's competitors include Nike (NYSE:NKE), and Billabong (OTCPK:BLLAY). Here is a table comparing these companies.

Company ZQK NKE BLLAY
Market Cap: 664.85M 67.33B 219.15M
Employees: 6,300 48,000 N/A
Qtrly Rev Growth (yoy): -0.11 0.13 0.03
Revenue: 1.75B 27.07B 1.27B
Gross Margin: 0.49 0.44 N/A
EBITDA: 93.88M 4.18B -21.34M
Operating Margin: 0.03 0.14 -0.05
Net Income: -242.42M 2.70B -492.94M
EPS: -1.22 2.93 -1.73
P/E: N/A 26.18 N/A
PEG (5 yr expected): -1.84 2.10 N/A
P/S: 0.36 2.47 0.17
P/B: 1.91 6.03 1.19
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Quiksilver has the second-lowest P/S ratio among these three companies.

Conclusion

There have been three different insiders buying Quiksilver, and there have not been any insiders selling Quiksilver during the last 30 days. Two of these three insiders increased their holdings by more than 10%. Quiksilver has an insider ownership of 32.99%.

The three insiders purchased their shares at prices ranging from $3.38 to $3.65. I believe Quiksilver could be a good pick below $3.65 based on the intensive insider buying.

(Source: Investor presentation)

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