Robert Flexon (Insider Trades), CEO and president of Dynegy Inc. (DYN), bought 10,000 shares in the company March 1. The average price per share was $10.08 for a total transaction of $100,800.
Dynegy is a power generation company with a market cap of $1.43 billion and a P/S ratio of 0.31.
There was a decrease in Dynegy's insider sell number and volume from 2014 to 2015 after an increase of insider sells from 2013 to 2014. The number and volume of insider sells peaked at 53 transactions totaling 11,998,906 shares of Dynegy in 2015. This directly correlates to a decrease in month-end price at the end of 2015. There were also no insider buys in 2013 and the following year.
Aside from the aforementioned transaction, Flexon acquired 38,000 shares of Dynegy in three purchases since 2013. No other insiders traded Dynegy in the first two months of 2016. For more information about insider trades with Dynegy, click here.
The company reported total operating loss of $13 million in the fourth quarter of 2015. Net income decreased from operating income of $12 million in the fourth quarter of 2014. Between these two quarters, operating income for the gas sector increased tenfold from $7 million to $70 million, but operating income for coal fell from $38 million to -$59 million. Net loss was also $134 million in the fourth quarter of 2015 compared to net loss of $13 million in the fourth quarter of the previous year.
Revenues for the 12 months ended in December 2014 and 2015 were $2.50 billion and $3.87 billion. Flexon commented that the company “achieved financial targets” despite a challenging operating environment. The company announced the completion of its $250 million share repurchase program on Nov. 19, 2015, which allowed it to repurchase a total of 11,326,122 shares.
On Feb. 25, the company also announced a partnership with Energy Capital Partners to acquire Engie’s (ENGI, Financial) U.S. fossil portfolio. The purchase price is $3.3 billion, or $378 per kW, and Dynegy and Energy Capital would own 65% and 35% of the joint venture with Dynegy overseeing daily management and operation.
Energy Capital will repurchase $150 million in Dynegy common stock at $10.94 per share and will own about 15% of Dynegy upon closing. As part of the agreement, Energy Capital will hold one Dynegy board seat as long as the company’s ownership exceeds 10% of Dynegy common stock. Flexon commented that the transaction will help “build a long-term sustainable portfolio in key competitive markets.” Both annual revenue and annual net income have followed decreasing trend lines since 2011. 
According to GuruFocus.com, Dynegy has a business predictability rank of 1 out of 5 stars. For more information about business predictability rank, click here.
Jim Simons (Trades, Portfolio) increased his stake in Dynegy, acquiring 432,300 shares of the company at an average per share price of $17.10 in the fourth quarter. In the same quarter, George Soros (Trades, Portfolio) sold out 39,527 shares of Dynegy after acquiring the holding for $25.42 per share in the previous quarter. For more information about guru trades with Dynegy, click here.
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