7 Insiders Are Buying Martin Midstream Stock

Jun.17.14 | About: Martin Midstream (MMLP)

Summary

Recently, 7 insiders transacted a total of 5416 shares at an average price of $40.09.

Overall, 19,507 shares were bought and 600 shares were sold in the last twelve months.

Together, insiders hold 0.62% of the shares outstanding.

Description

According to management, "Martin Midstream Partners L.P. (NASDAQ:MMLP) is a limited partnership with a diverse set of operations focused primarily in the United States Gulf Coast region. The partnership engages in the storage, transportation and distribution of petroleum products and by-products. The partnership operates in four business segments: Terminaling and Storage, Natural Gas Services, Marine Transportation, and Sulfur Services. Closely held, Martin Resource Management Corporation owns and controls the Company's general partner. In addition, it owns approximately 19% of the Company's limited partnership interests. The partnership was founded in 2002 and is based in Kilgore, Texas."

History

MMLP Chart

MMLP data by YCharts

Currently, Martin Midstream Partners is trading near its 52-week low of $39.80.

Recent Transactions

Name Position Shares Transacted Transaction Price Date
BONDURANT ROBERT D Officer 107 $40.44 5/19/2014
MARTIN RUBEN S Officer 281 $40.44 5/19/2014
TAUSCHER RANDALL L Officer 96 $40.44 5/19/2014
BOOTH CHRIS H Officer 2 $40.44 5/19/2014
MASSEY C SCOTT Director 500 $39.94 5/15/2014
MASSEY C SCOTT Director 250 $39.88 5/15/2014
FOSTER FORESTRY Other 1,000 $39.97 5/15/2014
SKELTON WESLEY M Officer 180 $39.89 5/14/2014
BONDURANT ROBERT D Officer 1,000 $39.65 5/14/2014
MARTIN RUBEN S Officer 2,000 $39.79 5/14/2014
Click to enlarge

Recently, 7 insiders transacted a total of 5416 shares at an average price of $40.09.

Insider Transactions in the Last Twelve Months

Date Net # of Transactions Shares Bought Shares Sold Net Shares Transacted Price Monthly Volume
Jun-14 $40.23 758,215
May-14 9 4,416 4,416 $40.64 5,101,000
Apr-14 4 606 606 $42.37 1,168,000
Mar-14 -1 -600 -600 $43.05 1,300,000
Feb-14 10 7,341 7,341 $42.07 1,973,000
Jan-14 4 554 554 $43.42 1,458,000
Dec-13 2 4,500 4,500 $42.80 1,729,000
Nov-13 6 898 898 $44.91 942,783
Oct-13 3 521 521 $47.00 1,224,000
Sep-13 $46.94 845,687
Aug-13 1 81 81 $45.49 2,567,000
Jul-13 4 590 590 $45.53 1,550,000
Click to enlarge

Overall, 19,507 shares were bought and 600 shares were sold in the last twelve months.

Current Insider Holdings

Holder Name Amount Held % Shares Outstanding Latest Chg Filing Date
MARTIN RUBEN S 77,882 0.25% 281 5/19/2014
BONDURANT ROBERT D 20,087 0.07% 107 5/19/2014
MASSEY C SCOTT 19,350 0.06% 750 5/15/2014
MARTIN SCOTT D 13,548 0.04% 39 8/26/2010
TAUSCHER RANDALL L 13,021 0.04% 96 5/19/2014
AVERETT JR JOE N 12,100 0.04% 1,600 2/25/2014
STILL JR CHARLES HENRY 9,600 0.03% 1,600 2/25/2014
HACKNEY HOWARD R 7,500 0.02% 1,250 4/30/2012
SKELTON WESLEY M 6,351 0.02% 0 5/14/2014
KELLEY BYRON R 5,600 0.02% 1,600 2/25/2014
NEUMEYER DONALD R 5,095 0.02% 43 8/20/2012
BOOTH CHRIS H 4,217 0.01% 2 5/19/2014
Click to enlarge

Source: Form 4

Together, insiders hold 0.62% of the shares outstanding.

From the comparables table below, you can see that MMLP has above average EBITDA growth relative to peers. Meanwhile, the firm trades below the average EV/EBITDA multiple.

Comparables Table

Ticker (MMLP) (NYSE:EPD) (NYSE:MMP) (NYSE:WMB) (NASDAQ:BKEP) (NYSE:SD) (NYSE:TLP) (NYSE:GEL) (NYSE:APL) (NYSE:GLP)
Company Name: MARTIN MIDSTREAM ENTERPRISE PRODUCT MAGELLAN MIDSTREAM WILLIAMS COS INC BLUEKNIGHT ENERGY SANDRIDGE ENERGY TRANSMONTAIGNE GENESIS ENERGY ATLAS PIPELINE GLOBAL PARTNERS
Latest Fiscal Year: 12/2013 12/2013 12/2013 12/2013 12/2013 12/2013 12/2013 12/2013 12/2013 12/2013
Latest Available Period Date: 3/31/2014 3/31/2014 3/31/2014 3/31/2014 12/31/2013 3/31/2014 3/31/2014 3/31/2014 3/31/2014 3/31/2014
52-Week High 48.90 76.50 84.41 48.00 9.50 7.10 50.00 57.47 40.06 43.41
52-Week High Date 10/23/2013 6/3/2014 6/6/2014 6/9/2014 4/21/2014 4/23/2014 6/5/2014 6/5/2014 7/11/2013 6/9/2014
52-Week Low 39.22 56.11 48.90 31.25 8.00 4.68 38.70 45.37 28.88 30.01
52-Week Low Date 5/14/2014 6/24/2013 6/24/2013 6/24/2013 10/7/2013 6/13/2013 8/14/2013 6/24/2013 3/11/2014 8/8/2013
Daily Volume 104,520 613,613 422,635 2,594,662 31,092 9,531,122 106,923 113,629 471,956 16,510
Current Price: 40.23 74.13 82.84 46.85 9.30 6.87 44.27 56.22 32.36 42.43
52-Week High % Change -17.7% -3.1% -1.9% -2.4% -2.1% -3.2% -11.5% -2.2% -19.2% -2.3%
52-Week Low % Change 2.6% 32.1% 69.4% 49.9% 16.3% 47.1% 14.4% 23.9% 12.0% 41.4%
Total Common Shares (NYSE:M) 26.63 935.7 226.7 683.0 22.8 490.3 16.1 88.7 80.6 27.3
Market Capitalization 1,232.6 69,260.0 18,810.3 32,116.5 213.2 3,396.3 713.8 4,986.2 2,609.6 1,163.9
Total Debt 643.8 18,367.8 2,941.3 12,850.0 273.2 3,195.0 234.0 1,341.2 1,704.9 893.6
Preferred Stock 0.0 - - - 204.6 765.0 - - 594.6 -
Minority Interest 0.0 223.1 - 4,101.0 - 1,308.0 - - 68.3 48.1
- Cash and Equivalents 4.4 988.4 196.6 1,064.0 3.2 1,179.6 4.7 11.7 9.8 13.1
Current Enterprise Value 1,872.0 86,862.5 21,555.0 48,003.5 687.8 7,484.7 943.2 6,315.8 4,967.7 2,092.5
Valuation Average Median
Total Revenue LFY 1,633.5 47,727.0 1,897.6 6,860.0 194.7 1,983.4 158.9 4,134.8 2,106.8 19,589.6 8,628.6 2,045.1
LTM 1,696.9 49,253.8 2,083.8 6,799.0 196.9 1,914.8 155.3 4,454.2 2,398.9 19,117.3 8,807.1 2,241.4
FY+1 2,007.2 54,085.9 2,161.0 7,808.1 201.5 1,673.5 153.3 4,644.3 2,829.7 20,787.3 9,635.2 2,495.4
FY+2 2,009.0 56,806.5 2,278.1 9,525.3 210.0 1,841.0 157.3 5,409.1 3,268.1 20,875.0 10,237.9 2,773.1
EV/Total Revenue LFY 1.09x 1.67x 8.96x 6.02x 3.43x 3.77x 5.63x 1.44x 2.39x 0.10x 3.4x 2.9x
LTM 1.06x 1.68x 8.92x 6.43x 3.39x 3.72x 5.95x 1.38x 2.06x 0.10x 3.5x 2.7x
FY+1 0.93x 1.61x 9.97x 6.15x 3.41x 4.47x 6.15x 1.36x 1.76x 0.10x 3.6x 2.6x
FY+2 0.93x 1.53x 9.46x 5.04x 3.28x 4.07x 5.99x 1.17x 1.52x 0.10x 3.3x 2.4x
EBITDA LFY 134.9 4,517.6 841.0 2,190.0 67.8 933.4 69.6 175.6 241.1 162.5 933.3 208.3
LTM 134.5 4,608.5 976.4 2,069.0 69.0 944.9 67.5 186.0 276.3 224.7 955.7 250.5
FY+1 154.3 5,191.1 1,030.9 3,104.7 64.0 951.7 72.1 291.6 384.9 192.3 1,143.8 338.2
FY+2 174.9 5,480.9 1,085.4 3,960.2 68.5 1,101.4 79.3 355.3 463.4 195.3 1,296.5 409.3
EV/EBITDA LFY 13.21x 17.61x 20.22x 18.86x 9.86x 8.00x 12.84x 33.82x 20.89x 11.79x 16.7x 15.4x
LTM 13.91x 18.85x 22.08x 23.20x 9.97x 7.92x 13.97x 33.96x 17.98x 9.31x 17.1x 16.0x
FY+1 12.14x 16.73x 20.91x 15.46x 10.75x 7.86x 13.08x 21.66x 12.91x 10.88x 14.2x 13.0x
FY+2 10.70x 15.85x 19.86x 12.12x 10.05x 6.80x 11.89x 17.78x 10.72x 10.71x 12.6x 11.3x
EPS LFY 0.80 2.83 2.59 0.82 0.37 -0.46 1.96 1.00 -1.02 1.42 1.03 0.91
LTM 0.64 2.82 3.14 0.82 0.16 -0.13 1.75 1.08 -1.20 3.61 1.27 0.95
FY+1 1.62 3.14 3.30 1.10 0.23 0.19 2.08 1.49 0.20 2.36 1.57 1.56
FY+2 1.94 3.29 3.38 1.47 0.27 0.18 2.51 1.90 0.96 2.13 1.80 1.92
P/E LFY 53.50x 23.46x 24.46x 47.04x 22.75x - 21.73x 52.57x - 24.92x 33.8x 24.7x
LTM 62.76x 26.27x 26.40x 57.32x 57.76x - 25.36x 52.06x - 11.75x 40.0x 39.2x
FY+1 24.77x 23.63x 25.13x 42.79x 39.91x 35.78x 21.28x 37.68x 164.26x 17.99x 43.3x 30.5x
FY+2 20.74x 22.51x 24.54x 31.81x 34.83x 39.26x 17.62x 29.53x 33.64x 19.95x 27.4x 27.0x
Revenue Growth 1 Year 9.6% 12.1% 7.1% -8.4% 8.8% -27.4% 1.7% 22.8% 69.1% 11.1% 10.7% 9.2%
5 Year 25.5% 23.8% 26.3% 0.2% 2.3% 24.7% 2.2% 35.5% 33.9% 29.0% 20.4% 25.1%
EBITDA Growth 1 Year 16.4% 8.9% 24.2% -7.5% 14.1% -9.5% -0.3% -0.2% 24.5% 19.7% 9.0% 11.5%
5 Year 9.1% 13.0% 13.9% -10.6% 0.4% 7.3% 3.8% 9.9% - 23.2% 7.8% 9.1%
EBITDA Margin LTM 7.93% 9.4% 46.9% 30.4% 35.0% 49.3% 43.5% 4.2% 11.5% 1.2% 23.9% 21.0%
FY+1 7.68% 9.6% 47.7% 39.8% 31.8% 56.9% 47.0% 6.3% 13.6% 0.9% 26.1% 22.7%
FY+2 8.70% 9.6% 47.6% 41.6% 32.6% 59.8% 50.4% 6.6% 14.2% 0.9% 27.2% 23.4%
Click to enlarge

Source: Bloomberg

Conclusions

MMLP supports its dividend yield of close to 8% with cash flow generated from fee-based contracts, which are mostly reservation charges or minimum fee arrangements. The customer base is diversified and stable, composed of major oil and gas companies, independent refiners, larger chemical companies, and fertilizer manufacturers. The four complementary business units helps MMLP become a diversified and integrated service provider. In addition, near term growth could come from the completion of Corpus Christi Crude Terminal by 2Q/2014.

Overall, I would go long the stock around the $40 level due to favorable trading levels.

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.