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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 (NASDAQ: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.

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
Matthew DrapkinDirectorJune 11-1297,9451,447,443
shares
+7.3%
Henry NothhaftDirectorJune 1125,00031,761
shares
+369.8%
Shawn RathjeCAOJune 121,5007,909 shares+23.4%
Philippe TartavullCEOJune 114,30069,742
shares
+6.6%
Roy LuriaSVPJune 1142011,235
shares
+3.9%
Thomas SabolCFOJune 11-123,00026,748
shares
+12.6%

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.

MonthInsider buying / sharesInsider selling / shares
June 2014132,1650
May 201400
April 201400
March 201400
February 201400
January 201400
December 201300
November 201300
October 201300
September 201300
August 201300
July 201300
June 201300
May 201300
April 201300
March 201300
February 201300
January 201300

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

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.

CompanyCNSICSGSERIC
Market Cap:542.20M828.47M39.53B
Employees:2,5003,398111,383
Qtrly Rev Growth (yoy):-0.240.04-0.09
Revenue:615.81M754.86M33.27B
Gross Margin:0.360.490.35
EBITDA:16.00M122.44M4.62B
Operating Margin:0.030.110.10
Net Income:6.00M46.14M1.93B
EPS:0.251.380.60
P/E:98.0018.6420.51
PEG (5 yr expected):-2.932.761.65
P/S:0.891.101.20

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.

Source: Comverse: 6 Different Insiders Have Purchased Shares This Month