Comverse: 6 Different Insiders Have Purchased Shares This Month

Jun.13.14 | About: Xura, Inc. (MESG)

Summary

6 insiders purchased Comverse stock within one month.

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

3 of these 6 insiders increased their holdings by more than 10%.

Comverse (CNSI) provides telecom business enablement solutions for communication service providers worldwide.

Click to enlarge

Insider buying during the last 30 days

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

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Matthew Drapkin Director June 11-12 97,945 1,447,443
shares
+7.3%
Henry Nothhaft Director June 11 25,000 31,761
shares
+369.8%
Shawn Rathje CAO June 12 1,500 7,909 shares +23.4%
Philippe Tartavull CEO June 11 4,300 69,742
shares
+6.6%
Roy Luria SVP June 11 420 11,235
shares
+3.9%
Thomas Sabol CFO June 11-12 3,000 26,748
shares
+12.6%
Click to enlarge

There have been 132,165 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

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

Month Insider buying / shares Insider selling / shares
June 2014 132,165 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 0
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 0 0
May 2013 0 0
April 2013 0 0
March 2013 0 0
February 2013 0 0
January 2013 0 0
Click to enlarge

There have been 132,165 shares purchased and there have been zero shares sold by insiders since January 2013. The month of June 2014 has seen all of the insider buying.

Financials

Comverse reported the fiscal 2014 first-quarter, which ended April 30, financial results on June 9 with the following highlights:

Revenue $119.1 million
Net loss $16.1 million
Cash $210.1 million
Net cash $9.44 per share
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The six insiders purchased their shares after these results.

Competition

Comverse's competitors include CSG Systems (NASDAQ:CSGS), and Ericsson (NASDAQ:ERIC). Here is a table comparing these companies.

Company CNSI CSGS ERIC
Market Cap: 542.20M 828.47M 39.53B
Employees: 2,500 3,398 111,383
Qtrly Rev Growth (yoy): -0.24 0.04 -0.09
Revenue: 615.81M 754.86M 33.27B
Gross Margin: 0.36 0.49 0.35
EBITDA: 16.00M 122.44M 4.62B
Operating Margin: 0.03 0.11 0.10
Net Income: 6.00M 46.14M 1.93B
EPS: 0.25 1.38 0.60
P/E: 98.00 18.64 20.51
PEG (5 yr expected): -2.93 2.76 1.65
P/S: 0.89 1.10 1.20
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Comverse has the lowest P/S ratio among these three companies.

Conclusion

There have been six different insiders buying Comverse and there have not been any insiders selling Comverse during the last 30 days. Three of these six insiders increased their holdings by more than 10%. Comverse has an insider ownership of 0.39%.

The six insiders purchased their shares at prices ranging from $23.09 to $23.66. I believe Comverse could be a good pick below $23.66 based on the intensive insider buying.

Disclosure: The author has no positions in any stocks mentioned, but may initiate a long position in CNSI over 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.