Insiders Are Buying Energy Fuels

| About: Energy Fuels (UUUU)

In this article, I will feature one uranium miner that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

  1. The stock is purchased by three or more insiders within one month.

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

  3. At least two purchasers increase their holdings by more than 10%.

Energy Fuels (EFRFF.PK) engages in the exploration, development, and production of uranium and vanadium properties in the United States.

Insider buying during the last 30 days

Here is a table of Energy Fuels' insider-trading activity during the last 30 days by insider.

Name Title Trade Date Shares Purchased Public Offering Current Ownership Increase In Shares
Stephen Antony CEO Oct 16 93,750 Yes 812,850 shares +13.0%
James Bovaird Director Oct 16 62,500 Yes 257,790 shares +32.0%
Robert Dengler Director Oct 16 312,500 Yes 620,661 shares +101.4%
David Frydenlund SVP Oct 16 31,250 Yes 491,851 shares +6.8%

There have been 500,000 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Energy Fuels' insider-trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
October 2013 500,000 0
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 1,643,429 0
May 2013 0 0

There have been 2,143,429 shares purchased and there have been zero shares sold by insiders since May 2013.

Financials

Energy Fuels reported the fiscal 2013 third-quarter, which ended June 30, financial results on August 14, with the following highlights:

Revenue $5.0 million
Net loss $5.5 million
Cash + inventory $28 million
Debt $20.6 million

Energy Fuels closed a $5 million public offering on October 16.

Outlook

FY-2013 Sales: Energy Fuels expects to sell 997,000 pounds of U3O8 during FY-2013, of which 957,000 pounds is expected to be sold under term contracts and the remainder sold into the spot market. Vanadium sales are estimated to be 1,537,000 pounds of V2O5, or equivalent in the form of ferrovanadium, during FY-2013.

Q4-2013 Sales: Energy Fuels expects to sell 257,000 pounds U3O8 during Q4-2013, all of which will be sold pursuant to term contracts.

Competition

Energy Fuels' competitors include Denison Mines (NYSEMKT:DNN) and Alpha Minerals (OTCPK:ESOFF).

Here is a table of these competitors' insider-trading activities during the last six months.

Company Insider buying / shares Insider selling / shares
DNN 133,000 0
ESOFF 25,850 165,600

Only Energy Fuels has seen intensive insider buying during the past 30 days.

Conclusion

There have been four different insiders buying Energy Fuels and there have not been any insiders selling Energy Fuels during the last 30 days. Three of these four insiders increased their holdings by more than 10%.

There are three analyst buy ratings, one neutral rating and zero sell ratings with an average price target of $0.38. The company has a book value of $0.22 per share. I believe the stock could be a good pick below the book value based on the intensive insider buying.

Disclosure: I am long EFRFF.PK. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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