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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

NamePositionShares TransactedTransaction PriceDate
WILLIAMS DAVID WOfficer10,000$31.036/6/2014
WILLIAMS DAVID WOfficer10,000$30.645/14/2014
MACLENNAN JAMES AOfficer4,075$30.735/14/2014
RICCIARDELLO MARY PDirector100$30.505/13/2014
RICCIARDELLO MARY PDirector180$30.535/13/2014

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

Insider Transactions in the Last Twelve Months

DateNet # of TransactionsShares BoughtShares SoldNet Shares TransactedPriceMonthly Volume
Jun-14110,000 10,000$32.7725,101,000
May-14414,355 14,355$31.4665,857,000
Apr-14121,571-1,25320,318$30.8199,915,000
Mar-1425,000 5,000$32.7478,580,000
Feb-14-1104,092-48,59755,495$31.0566,213,000
Jan-143285,353-82,507202,846$31.03100,484,000
Dec-13-3 -14,584-14,584$37.4759,865,000
Nov-13-1 -4,500-4,500$38.1271,188,000
Oct-13-110,984-14,469-3,485$37.7072,276,000
Sep-13 $37.7767,801,000
Aug-13 $37.2050,889,000
Jul-13156,559-10,51646,043$38.2056,795,000

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

Current Insider Holdings

Holder NameAmount Held% Shares OutstandingLatest ChgFiling Date
ROBERTSON JULIE J612,8650.24%17,9964/16/2014
WILLIAMS DAVID W390,2820.15%10,0006/6/2014
LELAND MARC E113,4700.04%15,0003/26/2012
RICCIARDELLO MARY P91,3400.04%2805/13/2014
CAWLEY MICHAEL A90,4480.04%2564/25/2014
TURCOTTE WILLIAM E63,6940.03%3,3582/4/2014
CHAZEN LAWRENCE J63,2910.02%10,0977/29/2013
EDWARDS JULIE H60,3340.02%4,0501/29/2014
HUNT ROGER B60,1740.02%4,1372/4/2014
MARKS SCOTT W58,3550.02%1,5502/4/2014
MACLENNAN JAMES A57,8420.02%4,0755/14/2014
HALL GORDON T42,3630.02%2494/25/2014
MARSHALL JON A39,8890.02%2584/25/2014
JACOBSEN DONALD E33,8730.01%7,1202/6/2012
AHLSTROM LEE M29,7220.01%04/29/2014
WOLFORD BERNIE G22,3990.01%7752/4/2014
JOHNSON SIMON20,4140.01%7024/29/2014
ALMANZA ASHLEY9,9690.00%3,8721/29/2014
LUBOJACKY DENNIS7,0620.00%7712/4/2014

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 PLCTRANSOCEAN LTDDIAMOND OFFSHOREENSCO PLC-CL AROWAN COMPANIE-ANABORS INDS LTDWEATHERFORD INTLBAKER HUGHES INCSCHLUMBERGER LTDATWOOD OCEANICS
Latest Fiscal Year:12/201312/201312/201312/201312/201312/201312/201312/201312/201309/2013
Latest Available Period Date:3/31/20143/31/20143/31/20143/31/20143/31/20143/31/20143/31/20143/31/20143/31/20143/31/2014
52-Week High41.6055.7473.0062.2538.6528.2023.0472.41108.0859.49
52-Week High Date7/18/201311/11/20137/22/201311/14/20139/17/20135/13/20146/9/20146/9/20146/12/20148/8/2013
52-Week Low28.6738.4743.6947.8529.5014.5012.9743.3470.2544.88
52-Week Low Date3/14/20143/17/20143/17/20143/17/20145/20/20147/12/20136/24/20136/24/20136/24/20132/10/2014
Daily Volume4,550,1323,522,1381,754,5731,536,2591,392,0522,855,4986,887,1462,099,3214,414,199503,744
Current Price: 32.7743.5748.6452.7532.1326.9922.1670.48106.2251.43
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 % Change14.3%15.3%12.9%10.2%8.9%86.1%70.8%62.6%51.2%14.6%
Total Common Shares (NYSE:M)253.45360.8139.0233.6124.2295.3767.0438.01,307.064.1
Market Capitalization8,329.915,771.86,670.512,325.73,995.88,028.017,117.730,727.7138,142.63,306.2
Total Debt5,728.810,470.02,494.24,751.22,808.03,817.89,332.04,503.012,489.01,512.7
Preferred Stock0.0----69.2----
Minority Interest724.76.0-9.2-10.844.0204.0176.0-
- Cash and Equivalents114.71,987.01,595.3122.51,440.4424.8367.01,200.07,078.059.6
Current Enterprise Value14,668.624,260.87,569.416,954.45,363.411,501.026,126.734,234.7143,553.64,759.3
ValuationAverageMedian
Total RevenueLFY4,234.39,484.02,920.44,919.81,579.36,152.015,263.022,364.045,266.01,063.711,324.65,535.9
LTM4,514.59,626.02,900.14,956.91,562.76,239.015,022.022,865.045,935.01,123.211,474.45,598.0
FY+15,055.89,020.13,073.85,033.21,835.76,669.515,592.824,306.548,826.91,188.112,060.25,862.6
FY+25,586.68,957.23,653.35,533.72,439.27,342.516,893.626,495.853,717.91,545.813,216.66,464.6
EV/Total RevenueLFY3.70x2.67x2.85x3.65x3.36x1.38x1.32x1.22x2.71x4.43x2.7x2.8x
LTM3.25x2.44x2.62x3.42x3.55x1.73x1.49x1.39x2.89x4.18x2.7x2.8x
FY+12.90x2.69x2.46x3.37x2.92x1.72x1.68x1.41x2.94x4.01x2.6x2.8x
FY+22.63x2.71x2.07x3.06x2.20x1.57x1.55x1.29x2.67x3.08x2.3x2.4x
EBITDALFY1,979.93,392.01,185.62,348.0587.01,680.22,054.03,647.012,011.0547.02,943.22,017.0
LTM2,162.93,638.01,170.22,351.0559.11,661.72,002.03,766.012,377.0545.13,023.32,082.5
FY+12,388.53,538.51,208.72,364.2723.91,777.23,202.64,749.313,906.8578.03,443.82,376.3
FY+22,637.03,344.91,474.12,557.71,078.82,144.13,834.35,629.215,706.5816.43,922.32,597.3
EV/EBITDALFY7.91x7.45x7.01x7.65x9.04x5.06x9.84x7.51x10.22x8.61x8.0x7.8x
LTM6.78x6.67x6.47x7.21x9.59x6.92x13.05x9.09x11.60x8.73x8.6x8.0x
FY+16.14x6.86x6.26x7.17x7.41x6.47x8.16x7.21x10.32x8.23x7.4x7.2x
FY+25.56x7.25x5.13x6.63x4.97x5.36x6.81x6.08x9.14x5.83x6.3x6.0x
EPSLFY3.004.123.936.091.951.180.602.624.755.323.363.46
LTM3.414.523.905.811.670.910.582.865.005.013.373.65
FY+13.464.223.705.702.361.161.084.165.704.993.653.93
FY+23.823.584.455.944.281.951.675.396.787.394.524.37
P/ELFY12.51x12.00x14.49x9.39x18.13x14.40x25.82x21.09x18.97x10.35x15.7x14.4x
LTM9.61x9.64x12.48x9.08x19.26x29.66x38.20x24.64x21.25x10.27x18.4x15.9x
FY+19.48x10.31x13.16x9.26x13.64x23.31x20.57x16.95x18.65x10.30x14.6x13.4x
FY+28.57x12.16x10.92x8.88x7.51x13.86x13.24x13.09x15.67x6.96x11.1x11.5x
Revenue Growth1 Year19.4%3.1%-2.2%14.4%13.4%-10.1%0.3%4.7%8.5%35.1%8.7%6.6%
5 Year10.2%-5.0%-4.3%33.7%2.2%10.2%10.4%19.8%15.1%15.3%10.8%10.3%
EBITDA Growth1 Year29.4%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 MarginLTM47.91%37.8%40.4%47.4%35.8%26.6%13.3%16.5%26.9%48.5%34.1%36.8%
FY+147.24%39.2%39.3%47.0%39.4%26.6%20.5%19.5%28.5%48.7%35.6%39.3%
FY+247.20%37.3%40.4%46.2%44.2%29.2%22.7%21.2%29.2%52.8%37.1%38.8%

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.

Source: 3 Insiders Are Buying Noble Stock