Dominion Diamond: 3 Different Insiders Have Purchased Shares This Month

| About: Dominion Diamond (DDC)
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Summary

Three insiders purchased Dominion Diamond stock within one month.

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

All three of these insiders increased their holdings by more than 10%.

Dominion Diamond Corporation (NYSE:DDC) engages in the mining and marketing of rough diamonds. The company operates the Ekati Diamond Mine (in which it owns an 80% controlling interest, as well as a 58.8% in the surrounding areas containing additional resources), and also owns 40% of the Diavik Diamond Mine.

Insider buying during the last 30 days

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

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Graham Clow Director April 14 2,500 2,500 shares from 0 to 2,500
Thomas Kenny Director April 8-10 34,129 34,129 shares from 0 to 34,129
Chuck Strahl Director April 11 3,468 3,468 shares from 0 to 3,468

There have been 40,097 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

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

Month Insider buying / shares Insider selling / shares
April 2014 40,097 0
March 2014 0 0
February 2014 0 0
January 2014 0 0
December 2013 0 0
November 2013 0 0
October 2013 3,000 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

There have been 43,097 shares purchased, and there have been zero shares sold by insiders since January 2013. The month of April 2014 has seen the most insider buying.

Financials

Dominion Diamond reported the fiscal 2014 full-year, which ended January 31, financial results on April 2 with the following highlights:

Revenue $751.9 million
Net loss $23.0 million
Cash $224.8 million
Debt $4.3 million

The three insiders purchased their shares after these results.

(Source: Investor presentation)

Outlook

The mine plan for calendar 2014 foresees Diavik Diamond Mine production (on a 100% basis) of approximately 6.1 million carats from the mining and processing of approximately 1.9 million tonnes of ore.

In fiscal 2015, the Ekati Diamond Mine expects to process (on a 100% basis) approximately 2.6 million tonnes from the mineral reserve and produce approximately 0.9 million carats.

(Source: Investor presentation)

Competition

Dominion Diamond's competitors include Mountain Province Diamonds (MDM), and Petra Diamonds (OTC:PDMDF). Here is a table comparing these companies.

Company DDC MDM PDMDF
Market Cap: 1.09B 467.33M 1.31B
Employees: N/A N/A 5,139
Qtrly Rev Growth (yoy): 1.12 N/A 0.19
Revenue: 751.94M N/A 431.90M
Gross Margin: 0.13 N/A N/A
EBITDA: 167.86M -27.00M 157.72M
Operating Margin: 0.04 N/A 0.27
Net Income: -22.98M -27.11M 65.60M
EPS: 5.64 -0.29 0.12
P/E: 2.23 N/A 20.65
PEG (5 yr expected): 0.78 N/A N/A
P/S: 1.44 N/A 3.02
P/B: 0.83 5.07 2.30

Dominion Diamond has the lowest P/B ratio among these three companies.

Here is a table of these competitors' insider activities this year.

Company Insider buying / shares Insider selling / shares
MDM 1,187,377 0
PDMDF N/A N/A

Only Dominion Diamond has seen intensive insider buying during the last 30 days.

Conclusion

There have been three different insiders buying Dominion Diamond, and there have not been any insiders selling Dominion Diamond during the last 30 days. All three of these insiders increased their holdings by more than 10%. Dominion Diamond has an insider ownership of 4.99%.

The three insiders purchased their shares at prices ranging from $13.00 (C$14.30) to $13.32 (C$14.65). I believe Dominion Diamond could be a good pick below $13.32 based on the intensive insider buying.

(Source: Investor presentation)

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in DDC over the next 72 hours. 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.