Oiltanking Partners LP (NYSE:OILT) is a $3.17 billion market cap oil and gas midstream company engaged in the terminaling, storage and transportation of crude oil, refined petroleum products and liquefied petroleum gas. Since the beginning of the year, several insiders have been buying its stock, which has already escalated more than 22%. We have, in fact, been tracking this company for a while now. For instance, since we recommended this stock on Oct. 2013, the price rose by 39%. So, once again, keeping a close eye on insider moves can help you reap greater profits, outperforming the broader market. Let´s take a look at the purchases that took place since the start of 2014:
The –two- most recent transactions occurred on April 7th. Kenneth Owen, President and CEO, acquired 1,500 shares of Common Stock for approximately $77.81 per share. A few weeks earlier, on March 21st, he had already purchased 1,500 shares of the company, for $74.34 each. Following these transactions, the insider owns 5,000 shares of the company.
The other insider that bought stock on April 7th is David Griffis, a Board Director. He acquired 64 shares of the company for $78.51 each, and now holds 9,424 Oiltanking Partners shares. However, this purchase must be contextualized. Mr. Griffis has been buying this stock every month since Jan. 2012, always between the 7th and 9th day of the month. Since he first started buying, the stock has almost tripled in price. Nevertheless, valued at 15.8 times the company’s earnings (versus an industry average of 39.8x), this stock still looks like a bargain, especially given the firm’s industry leading margins, returns, growth history, and a 2.46% dividend yield.
Insider activity does not stop here. Jonathan Ackerman, Vice President and CFO, also acquired its stock this year. On March 10th, he started a position with 1,000 shares, which he procured for $70.53 per share.
Finally, there’s Anne-Marie Ainsworth, President, Chief Executive Officer and Board Director, who, on Jan. 6th, acquired 1,000 shares at prices ranging from $62.20 to $62.46 per common unit (the weighted average price was of $62.37 per share). Mrs. Ainsworth now owns 13,000 shares of Oiltanking Partners LP (NYSE:OILT), valued at more than $992,000.
In addition to all of these insiders, several major hedge funds have placed big bets on the stock lately. For instance, J. Alan Reid, Jr.’s Forward Management last declared having started a position in the stock with 140,000 shares, and Richard Driehaus‘ Driehaus Capital, one with 38,800 shares.
With insiders and hedge funds betting on this stock. Should you too? Or is it already too late?
Disclosure: Javier Hasse holds no position in any stocks mentioned