A CEO and A Board Member Bought 5.3% Yield Access Midstream

Page 1 of 2

Filings with the SEC have disclosed that two insiders at Access Midstream Partners LP (NYSE:ACMP) bought the stock on December 24th. CEO Michael Stice bought 9,000 shares at an average price of $33.60 per share- increasing his direct stake in the company by about 50% to a little over 27,000 shares- while Board member David Daberko now owns a little over 14,000 shares after buying 6,000 shares of the stock at a slightly lower price. Access Midstream currently trades at $32.70, down just a bit from where these insiders bought. Studies show that stocks bought by insiders tend to beat the market- though not always- and this makes sense to us as insiders should prefer to diversify their investments unless they are particularly confident in the stock (read more about studies on insider trading). Our reading of academic work on insider trading has convinced us that seeing multiple insiders buy, as has happened here, is a particularly interesting signal. Learn more about consensus insider purchases.

Access Midstream logo

Access Midstream, unsurprisingly, operates gathering and other midstream services for natural gas in the onshore U.S., where a boom in natural gas production has somewhat outpaced available infrastructure. Access Midstream recently purchased substantial midstream assets from Chesapeake Energy Corporation (NYSE:CHK); the company itself was a Chesapeake spinout in 2008, and was known as Chesapeake Midstream Partners until this past July. The most recent 10-Q showed revenue up 11% from the third quarter of 2011, though earnings growth was more modest and earnings per share actually declined slightly.

Access Midstream has increased its dividend payment each quarter since it began paying dividends in November 2010. That’s not a particularly long history of paying dividends, of course, but it is a good sign that the company has had enough cash to keep that streak going (though cash balances were low at the end of September, we can hope that if the company can buy assets it can make dividend payments). If we assume that it halts its dividend increases, the yield at current prices is 5.3%. That’s certainly high enough to merit consideration as an income stock even ignoring the potential for dividends to increase further. The beta is 0.3, so the stock would seem to have some downside protection from poor economic conditions as well. Valuation isn’t great with Access Midstream trading at 20 times consensus earnings for 2013, but we think that there are enough opportunities in its industry to at least protect its financials from deteriorating too much.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!