The iShares Dow Jones U.S. Industrial Sector Index ETF (IYJ) was trading as low as $28.58 in March 2009. The index is currently trading at $87.04 or 204.5% above the low made in March 2009.
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In this article, I will feature one industrial goods company that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:
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Insider Buying by Insider (Last 30 Days)
Here is a table of MRC Global's insider-trading activity by calendar month.
There have been 25,599 shares purchased and there have been 26,450,000 shares sold by the insiders since March 2013.
Financials
The company reported the second-quarter financial results on August 1 with the following highlights:
Outlook
The company's full year 2013 guidance is as follows:
Competition
MRC Global's competitors include W.W. Grainger (GWW). Here is a table comparing these two companies.
MRC Global's P/S ratio is below its direct competitor's. W.W. Grainger has seen 20 insider sell transactions this year.
Conclusion
There have been three different insiders buying MRC Global and there have not been any insiders selling MRC Global during the last 30 days. Two out of these three insiders increased their holdings by more than 10%. MRC Global has an insider ownership of 0.60%. There are nine analyst buy ratings, three neutral ratings and one sell rating with an average target price of $30.06. MRC Global is trading at a P/E ratio of 18.80 and a forward P/E ratio of 12.63. MRC Global has a book value of $12.40 per share. I have a cautiously bullish bias for the stock currently based on the intensive insider buying.
Disclosure: I have no positions in any stocks mentioned.
(click to enlarge)
In this article, I will feature one industrial goods company that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:
- The stock is purchased by three or more insiders within one month.
- The stock is sold by no insiders in the month of intensive purchasing.
- At least two purchasers increase their holdings by more than 10%.
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Insider Buying by Insider (Last 30 Days)
- Daniel Churay purchased 550 shares on Aug. 16 and currently holds 550 shares or less than 0.1% of the company. Daniel Churay has served as the company's executive vice president corporate affairs, general counsel and corporate secretary since May 2012.
- Rory Isaac purchased 5,000 shares on Aug. 12 and currently holds 62,861 shares or less than 0.1% of the company. Rory Isaac has served as executive vice president, international operations since June 2013.
- James Braun purchased 4,000 shares on Aug. 12 and currently holds 16,666 shares or less than 0.1% of the company. James Braun has served as executive vice president and chief financial officer since November 2011.
Here is a table of MRC Global's insider-trading activity by calendar month.
| Month | Insider buying / shares | Insider selling / shares |
| August 2013 | 9,550 | 0 |
| July 2013 | 0 | 0 |
| June 2013 | 10,000 | 0 |
| May 2013 | 0 | 0 |
| April 2013 | 0 | 0 |
| March 2013 | 6,049 | 26,450,000 |
Financials
The company reported the second-quarter financial results on August 1 with the following highlights:
| Revenue | $1.3 billion |
| Net income | $43.9 million |
| Cash | $37.8 million |
| Debt | $1.1 billion |
Outlook
The company's full year 2013 guidance is as follows:
| Revenue | $5.1-$5.3 billion |
| Adjusted EBITDA | $385-$415 million |
| Diluted EPS | $1.65-$1.85 |
Competition
MRC Global's competitors include W.W. Grainger (GWW). Here is a table comparing these two companies.
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Conclusion
There have been three different insiders buying MRC Global and there have not been any insiders selling MRC Global during the last 30 days. Two out of these three insiders increased their holdings by more than 10%. MRC Global has an insider ownership of 0.60%. There are nine analyst buy ratings, three neutral ratings and one sell rating with an average target price of $30.06. MRC Global is trading at a P/E ratio of 18.80 and a forward P/E ratio of 12.63. MRC Global has a book value of $12.40 per share. I have a cautiously bullish bias for the stock currently based on the intensive insider buying.
Disclosure: I have no positions in any stocks mentioned.
