3 Insiders Are Buying Noble Stock

Jun.13.14 | About: Noble Corporation (NE)

Summary

Recently, 3 insiders transacted a total of 24,355 shares at an average price of $30.73.

Overall, 507,914 shares were bought and 176,426 shares were sold in the last twelve months.

Together, insiders hold 0.72% of the shares outstanding.

Recently, Noble Corp PLC (NYSE: NE) has seen strong insider buying around the $31 range.

Description

According to management, "Noble is a leading offshore drilling contractor for the oil and gas industry. Noble performs, through its subsidiaries, contract drilling services with a fleet of 77 offshore drilling units (including one ultra-deepwater drillship and three high-specification jackup drilling rigs currently under construction), located worldwide, including in the U.S. Gulf of Mexico and Alaska, Mexico, Brazil, Argentina, the North Sea, the Mediterranean, West Africa, the Middle East, India, Malaysia and Australia."

History

NE Chart

NE data by YCharts

Currently, Noble Corp is trading at the low end of its 52-week range.

Recent Transactions

Name Position Shares Transacted Transaction Price Date
WILLIAMS DAVID W Officer 10,000 $31.03 6/6/2014
WILLIAMS DAVID W Officer 10,000 $30.64 5/14/2014
MACLENNAN JAMES A Officer 4,075 $30.73 5/14/2014
RICCIARDELLO MARY P Director 100 $30.50 5/13/2014
RICCIARDELLO MARY P Director 180 $30.53 5/13/2014
Click to enlarge

Recently, 3 insiders transacted a total of 24,355 shares at an average price of $30.73.

Insider Transactions in the Last Twelve Months

Date Net # of Transactions Shares Bought Shares Sold Net Shares Transacted Price Monthly Volume
Jun-14 1 10,000 10,000 $32.77 25,101,000
May-14 4 14,355 14,355 $31.46 65,857,000
Apr-14 1 21,571 -1,253 20,318 $30.81 99,915,000
Mar-14 2 5,000 5,000 $32.74 78,580,000
Feb-14 -1 104,092 -48,597 55,495 $31.05 66,213,000
Jan-14 3 285,353 -82,507 202,846 $31.03 100,484,000
Dec-13 -3 -14,584 -14,584 $37.47 59,865,000
Nov-13 -1 -4,500 -4,500 $38.12 71,188,000
Oct-13 -1 10,984 -14,469 -3,485 $37.70 72,276,000
Sep-13 $37.77 67,801,000
Aug-13 $37.20 50,889,000
Jul-13 1 56,559 -10,516 46,043 $38.20 56,795,000
Click to enlarge

Overall, 507,914 shares were bought and 176,426 shares were sold in the last twelve months.

Current Insider Holdings

Holder Name Amount Held % Shares Outstanding Latest Chg Filing Date
ROBERTSON JULIE J 612,865 0.24% 17,996 4/16/2014
WILLIAMS DAVID W 390,282 0.15% 10,000 6/6/2014
LELAND MARC E 113,470 0.04% 15,000 3/26/2012
RICCIARDELLO MARY P 91,340 0.04% 280 5/13/2014
CAWLEY MICHAEL A 90,448 0.04% 256 4/25/2014
TURCOTTE WILLIAM E 63,694 0.03% 3,358 2/4/2014
CHAZEN LAWRENCE J 63,291 0.02% 10,097 7/29/2013
EDWARDS JULIE H 60,334 0.02% 4,050 1/29/2014
HUNT ROGER B 60,174 0.02% 4,137 2/4/2014
MARKS SCOTT W 58,355 0.02% 1,550 2/4/2014
MACLENNAN JAMES A 57,842 0.02% 4,075 5/14/2014
HALL GORDON T 42,363 0.02% 249 4/25/2014
MARSHALL JON A 39,889 0.02% 258 4/25/2014
JACOBSEN DONALD E 33,873 0.01% 7,120 2/6/2012
AHLSTROM LEE M 29,722 0.01% 0 4/29/2014
WOLFORD BERNIE G 22,399 0.01% 775 2/4/2014
JOHNSON SIMON 20,414 0.01% 702 4/29/2014
ALMANZA ASHLEY 9,969 0.00% 3,872 1/29/2014
LUBOJACKY DENNIS 7,062 0.00% 771 2/4/2014
Click to enlarge

Source: Form 4

Together, insiders hold 0.72% of the shares outstanding.

From the comparables table below, you can see that NE has much higher revenue and EBITDA growth relative to peers. Meanwhile, the firm trades below the average EV/EBITDA multiple and P/E multiple.

Comparables Table

Ticker (NYSE:RIG) (NYSE:DO) (NYSE:ESV) (NYSE:RDC) (NYSE:NBR) (NYSE:WFT) (NYSE:BHI) (NYSE:SLB) (NYSE:ATW)
Company Name: NOBLE CORP PLC TRANSOCEAN LTD DIAMOND OFFSHORE ENSCO PLC-CL A ROWAN COMPANIE-A NABORS INDS LTD WEATHERFORD INTL BAKER HUGHES INC SCHLUMBERGER LTD ATWOOD OCEANICS
Latest Fiscal Year: 12/2013 12/2013 12/2013 12/2013 12/2013 12/2013 12/2013 12/2013 12/2013 09/2013
Latest Available Period Date: 3/31/2014 3/31/2014 3/31/2014 3/31/2014 3/31/2014 3/31/2014 3/31/2014 3/31/2014 3/31/2014 3/31/2014
52-Week High 41.60 55.74 73.00 62.25 38.65 28.20 23.04 72.41 108.08 59.49
52-Week High Date 7/18/2013 11/11/2013 7/22/2013 11/14/2013 9/17/2013 5/13/2014 6/9/2014 6/9/2014 6/12/2014 8/8/2013
52-Week Low 28.67 38.47 43.69 47.85 29.50 14.50 12.97 43.34 70.25 44.88
52-Week Low Date 3/14/2014 3/17/2014 3/17/2014 3/17/2014 5/20/2014 7/12/2013 6/24/2013 6/24/2013 6/24/2013 2/10/2014
Daily Volume 4,550,132 3,522,138 1,754,573 1,536,259 1,392,052 2,855,498 6,887,146 2,099,321 4,414,199 503,744
Current Price: 32.77 43.57 48.64 52.75 32.13 26.99 22.16 70.48 106.22 51.43
52-Week High % Change -21.2% -20.5% -29.7% -15.3% -16.9% -4.3% -3.8% -2.7% -1.7% -13.5%
52-Week Low % Change 14.3% 15.3% 12.9% 10.2% 8.9% 86.1% 70.8% 62.6% 51.2% 14.6%
Total Common Shares (NYSE:M) 253.45 360.8 139.0 233.6 124.2 295.3 767.0 438.0 1,307.0 64.1
Market Capitalization 8,329.9 15,771.8 6,670.5 12,325.7 3,995.8 8,028.0 17,117.7 30,727.7 138,142.6 3,306.2
Total Debt 5,728.8 10,470.0 2,494.2 4,751.2 2,808.0 3,817.8 9,332.0 4,503.0 12,489.0 1,512.7
Preferred Stock 0.0 - - - - 69.2 - - - -
Minority Interest 724.7 6.0 - 9.2 - 10.8 44.0 204.0 176.0 -
- Cash and Equivalents 114.7 1,987.0 1,595.3 122.5 1,440.4 424.8 367.0 1,200.0 7,078.0 59.6
Current Enterprise Value 14,668.6 24,260.8 7,569.4 16,954.4 5,363.4 11,501.0 26,126.7 34,234.7 143,553.6 4,759.3
Valuation Average Median
Total Revenue LFY 4,234.3 9,484.0 2,920.4 4,919.8 1,579.3 6,152.0 15,263.0 22,364.0 45,266.0 1,063.7 11,324.6 5,535.9
LTM 4,514.5 9,626.0 2,900.1 4,956.9 1,562.7 6,239.0 15,022.0 22,865.0 45,935.0 1,123.2 11,474.4 5,598.0
FY+1 5,055.8 9,020.1 3,073.8 5,033.2 1,835.7 6,669.5 15,592.8 24,306.5 48,826.9 1,188.1 12,060.2 5,862.6
FY+2 5,586.6 8,957.2 3,653.3 5,533.7 2,439.2 7,342.5 16,893.6 26,495.8 53,717.9 1,545.8 13,216.6 6,464.6
EV/Total Revenue LFY 3.70x 2.67x 2.85x 3.65x 3.36x 1.38x 1.32x 1.22x 2.71x 4.43x 2.7x 2.8x
LTM 3.25x 2.44x 2.62x 3.42x 3.55x 1.73x 1.49x 1.39x 2.89x 4.18x 2.7x 2.8x
FY+1 2.90x 2.69x 2.46x 3.37x 2.92x 1.72x 1.68x 1.41x 2.94x 4.01x 2.6x 2.8x
FY+2 2.63x 2.71x 2.07x 3.06x 2.20x 1.57x 1.55x 1.29x 2.67x 3.08x 2.3x 2.4x
EBITDA LFY 1,979.9 3,392.0 1,185.6 2,348.0 587.0 1,680.2 2,054.0 3,647.0 12,011.0 547.0 2,943.2 2,017.0
LTM 2,162.9 3,638.0 1,170.2 2,351.0 559.1 1,661.7 2,002.0 3,766.0 12,377.0 545.1 3,023.3 2,082.5
FY+1 2,388.5 3,538.5 1,208.7 2,364.2 723.9 1,777.2 3,202.6 4,749.3 13,906.8 578.0 3,443.8 2,376.3
FY+2 2,637.0 3,344.9 1,474.1 2,557.7 1,078.8 2,144.1 3,834.3 5,629.2 15,706.5 816.4 3,922.3 2,597.3
EV/EBITDA LFY 7.91x 7.45x 7.01x 7.65x 9.04x 5.06x 9.84x 7.51x 10.22x 8.61x 8.0x 7.8x
LTM 6.78x 6.67x 6.47x 7.21x 9.59x 6.92x 13.05x 9.09x 11.60x 8.73x 8.6x 8.0x
FY+1 6.14x 6.86x 6.26x 7.17x 7.41x 6.47x 8.16x 7.21x 10.32x 8.23x 7.4x 7.2x
FY+2 5.56x 7.25x 5.13x 6.63x 4.97x 5.36x 6.81x 6.08x 9.14x 5.83x 6.3x 6.0x
EPS LFY 3.00 4.12 3.93 6.09 1.95 1.18 0.60 2.62 4.75 5.32 3.36 3.46
LTM 3.41 4.52 3.90 5.81 1.67 0.91 0.58 2.86 5.00 5.01 3.37 3.65
FY+1 3.46 4.22 3.70 5.70 2.36 1.16 1.08 4.16 5.70 4.99 3.65 3.93
FY+2 3.82 3.58 4.45 5.94 4.28 1.95 1.67 5.39 6.78 7.39 4.52 4.37
P/E LFY 12.51x 12.00x 14.49x 9.39x 18.13x 14.40x 25.82x 21.09x 18.97x 10.35x 15.7x 14.4x
LTM 9.61x 9.64x 12.48x 9.08x 19.26x 29.66x 38.20x 24.64x 21.25x 10.27x 18.4x 15.9x
FY+1 9.48x 10.31x 13.16x 9.26x 13.64x 23.31x 20.57x 16.95x 18.65x 10.30x 14.6x 13.4x
FY+2 8.57x 12.16x 10.92x 8.88x 7.51x 13.86x 13.24x 13.09x 15.67x 6.96x 11.1x 11.5x
Revenue Growth 1 Year 19.4% 3.1% -2.2% 14.4% 13.4% -10.1% 0.3% 4.7% 8.5% 35.1% 8.7% 6.6%
5 Year 10.2% -5.0% -4.3% 33.7% 2.2% 10.2% 10.4% 19.8% 15.1% 15.3% 10.8% 10.3%
EBITDA Growth 1 Year 29.4% 22.6% -11.3% 12.0% 8.6% -14.6% -16.0% -3.0% 11.3% 40.2% 7.9% 9.9%
5 Year -2.4% -12.0% -11.9% 7.7% -4.3% -2.6% -5.4% 3.5% 6.0% 14.4% (0.7%) (2.5%)
EBITDA Margin LTM 47.91% 37.8% 40.4% 47.4% 35.8% 26.6% 13.3% 16.5% 26.9% 48.5% 34.1% 36.8%
FY+1 47.24% 39.2% 39.3% 47.0% 39.4% 26.6% 20.5% 19.5% 28.5% 48.7% 35.6% 39.3%
FY+2 47.20% 37.3% 40.4% 46.2% 44.2% 29.2% 22.7% 21.2% 29.2% 52.8% 37.1% 38.8%
Click to enlarge

Source: Bloomberg

Conclusions

In 2014, Noble has taken delivery of newbuild jackups Houston Colbert and Sam Turner, which are ready to begin operations in the North Sea and Argentina. Furthermore, Noble expects to take delivery of two ultra-deepwater drillships and three high-specification jackups by the end of this year. In terms of financials, Noble has increased revenues 7% since Q4/2013 and cash flows more than doubled from Q1/2013 figures. As a result, the company has been able to enhance shareholder value by increasing dividends by 50% in the recent quarter.

Overall, I believe that management's recent insider purchases expresses confidence in the additional premium assets, as well as the company's revenue growth going forward. Hence, I would consider going long NE around the $30 range.

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.