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Group Insiders Reporting Large Buys in the Energy Sector

October 24, 2013 | About:
Monica Wolfe

Monica Wolfe

129 followers
Over the past week there have been several large group insider buys. These buys come from various sectors of the market, but had their stock bought by two or more corporate executives. The following three companies reported the largest group of insider buys.

SolarCity Corp (SCTY)


The largest insider buy of the week comes from SolarCity’s director Elon Musk. Musk is also the CEO and brains behind Tesla Motors (TSLA). Over the past week Elon Musk and two others made very significant buys after the company announced a new acquisition.

The insiders all purchased their shares for $46.54 per share.

Director Elon Musk purchased a massive 214,869 shares. This cost the director a total of $10,000,003. The price is up 24.24% since then. Musk now holds on to over 21 million shares of the company’s stock.

CEO Lyndon Rive added 107,434 shares to his position in the company. These shares cost Rive a total transaction amount of $4,999,979. As of his most recent buy, Rive holds on to 2.839 million shares of his company’s stock.

Chief Revenue Officer Hayden Barnard also purchased 107,434 shares at $46.54 per share, costing him $4,999,979. This was the first buy for Barnard, so his total number of shares is 107,343.

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These are the first insider transactions for the company since its IPO in 2012.

SolarCity is engaged in designing, sales, engineering, installation, monitoring, maintenance and financing of solar energy systems to residential and commercial customers, or sale of electricity generated by solar energy systems to customers.

SolarCity’s historical revenue and net income:

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The analysis on SolarCity Corp reports that the company’s price is near a 1-year high, its inventory is building up and its P/B ratio is also near a 1-year high.

SolarCity recently announced that it would be acquiring Zep Solar. SolarCity will acquire Zep Solar for $158 million. The transaction is structured as an acquisition of all of the outstanding capital stock of Zep Solar through a merger of Zep Solar with a wholly-owned acquisition subsidiary of SolarCity.

There are currently no guru shareholders of SolarCity.

SolarCity Corp has a market cap of $4.94 billion. Its shares are currently trading at around $60.09 with a P/S ratio of 22.50 and a P/B ratio of 25.70.

EV Energy Partner LP (EVEP)

Over the past week there were two significant insider buys coming from corporate executives.

Executive Chairman of the Board John Walker purchased a very large 135,000 shares at an average price of $36.86 per share. This cost the Chairman a total of $4,976,100. Since his buy, the price per share is up about 0.79%. Walker now holds on to 1.95 million shares of company stock.

President and CEO Mark Houser purchased 15,000 shares at $36.86 per share. This cost the CEO a total of $552,900. Since his transaction the price per share is trading up about 0.79%. Houser now holds on to a total of 463,078 shares of EV Energy Partner stock.

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EV Energy Partner LP is engaged in the acquisition, development and production of oil and natural gas properties.

EV Energy’s historical revenue and net income:

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The analysis on EV Energy reports that the company has issued $661.2 million of debt over the past three years, its dividend yield is at a 3-year high and its P/B and P/S ratios are near record lows.

The company recently announced the acquisition of Barnett Shale. EVEP agreed to acquire a 31% interest in these assets for $67.6 million. This acquisition is set to close on Oct. 31, 2013.

Jim Simons is the only guru with a position in EVEP. Simons holds on to 134,500 shares, representing 0.32% of the company’s shares outstanding and 0.01% of his total portfolio.

EV Energy has a market cap of $1.58 billion. Its shares are currently trading at around $37.17 with a P/S ratio of 5.20 and a P/B ratio of 1.60. The company currently holds a dividend yield of 8.30%.

Acorn Energy (ACFN)

Over the past week several insiders have made notable buys as the company had a secondary public offering. Three corporate executives and directors made buys as a result of this public offering, and one director made a buy after the close of the offering. The shares were traded at $2.85 per share.

The insiders making buys were President and CEO of USSI James Andersen, CFO Michael Barth and Director Mannie Jackson. Since the public offering, shares are up 23.51%

· Anderson bought 3,500 shares, spending $9,975. He now owns 38,044 shares of Acorn.

· Barth bought 5,000 shares, spending $14,250. He now holds 6,000 shares of ACFN.

· Jackson bought 80,000 shares, spending $228,000. He holds on to 88,100 shares.

After the public offering closed, Director Andy Sassine purchased 6,988 shares at the price of $3.25 per share. This cost the director a total of $22,711. Since his buy, the price per share is up about 8.31%. Sassine now holds on to 308,096 shares of company stock.

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Acorn Energy is a holding company which provides digital solutions for energy infrastructure asset management. The company operates four businesses: DSIT, GridSense, OmniMetrix and USSI.

Acorn Energy’s historical revenue and net income:

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The analysis on Acorn Energy reports that the company’s revenue has been in decline for the past five years, its interest coverage is comfortable, its operating margin is expanding and its price is near a 3-year low.

Columbia Wanger is the only guru fund that holds on to shares of ACFN. The fund owns 2,350,284 shares, representing 12.99% of the company’s shares outstanding and 0.09% of their total assets managed.

These insider buys were a result of the company’s recent public offering. The company announced the sale of 3,508,771 shares at a price of $2.85 per share. As a result Acorn Energy received net proceeds of approximately $9.1 million.

The company also recently announced that its subsidiary, USSI, has begun deploying fiber optics in order to digitize the sub-surface and microseismic surveys. These fiber optics will award the ability to perform directional drilling which will allow companies to drill horizontally as well as hydraulic fracturing.

Acorn Energy has a market cap of $81 million. Its shares are currently traded at around $3.65 per share with a P/S ratio of 3.20 and a P/B ratio of 1.70. The company had an annual average earnings growth of 6.4% over the past ten years.

You can check out all group insider buys by using the GuruFocus All-in-One Screener.

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