Ferrellgas insider trading: Boyd Mcgathey, Evp & Coo at Ferrellgas Partners, L.P. (NYSE:FGP), purchased 1,000 shares of common stock on Tuesday this week, in two separate transactions. The first acquisition consisted of 600 shares at $21.8 each, with a second purchase of 400 shares at $21.90. This brought Mcgathey’s holdings to 13,000 shares or approximately $288,600. Share prices have risen 1.36% since the Officer made his purchases on Tuesday, and the stock is now trading very near its 52-week high of $23.74 per share.
Ferrellgas stock has a 9.05% dividend yield and is currently trading at 30.4 times its trailing earnings, which represents a 275% price premium, relative to industry peers’ average. Apart from Mcgathey’s confidence in the firm, fourth quarter results saw adjusted EBITDA increase by 41% for 2013 and distributable cash flow almost double. Investors might be looking at attractive returns on their investments, despite having to pay a high price for entry.
In a press release from September 26th, Ferrellgas announced that gross profit for the year has increased by 15% to a record $738.8 million. The quarter results are seen as a reflection of full year trends, that have greatly benefitted the firm. CEO Steve Wambold expressed his optimism in the press release by saying, “we hope that our growth strategy will allow us to build upon these results in the years to come”.
Mcgathey’s bullish feeling towards Ferrellgas stock, expressed by his recent purchases of company shares, is not only backed by positive financial results. The acquisition of Mr. Bar-B-Q this year has opened up new opportunities for the firm, while providing measurable financial returns. As Wambold stated in the press release, “Also contributing to our optimism are the steps Blue Rhino has taken to significantly improve its market-leading position with more than 46,000 selling locations.”
Disclosure: Pablo Erbar holds no position in any stocks mentioned