Green Mountain Coffee Roasters: 3 Different Insiders Have Purchased Shares This Week

In this article, I will feature one consumer stock that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

1. The stock is purchased by three or more insiders within one month.


2. The stock is sold by no insiders in the month of intensive purchasing.


3. At least two purchasers increase their holdings by more than 10%.

Green Mountain Coffee Roasters (GMCR) is engaged in the specialty coffee and coffeemaker businesses in the United States and Canada.

(click to enlarge)

Insider buying during the last 30 days

Here is a table of Green Mountain Coffee Roasters' insider-trading activity during the last 30 days by insider.

Name	Title	Trade Date	Shares Purchased	Current Ownership	Increase In Shares
Robert Steele	Director	Nov 26	2,000	2,431 shares	+464.0%
Norman Wesley	Chairman	Nov 25	10,000	20,164 shares	+98.4%
David Mackay	Director	Nov 25	10,000	26,135 shares	+62.0%

There have been 22,000 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Green Mountain Coffee Roasters' insider-trading activity by calendar month.

Month	Insider buying / shares	Insider selling / shares
November 2013	22,000	0
October 2013	0	0
September 2013	0	0
August 2013	17,000	31,750
July 2013	0	0
June 2013	0	100,000
May 2013	0	483,700
April 2013	0	270,000
March 2013	0	35,000
February 2013	0	70,000
January 2013	0	100,000

There have been 39,000 shares purchased and there have been 1,090,450 shares sold by insiders this year. The month of November has seen the most insider buying.

Financials

Green Mountain Coffee Roasters reported the fiscal 2013 full-year, which ended September 28, financial results on November 20 with the following highlights:

Revenue	$4.4 billion
Net income [GAAP]	$483.2 million
Cash	$260.7 million
Debt	$251.0 million

Outlook

Green Mountain Coffee Roasters' guidance is as follows:

	Q1/2014	FY2014
Net sales growth	low-to-mid single digits over the first quarter of fiscal year 2013	high single digits over fiscal year 2013
Non-GAAP EPS	$0.85-$0.90	$3.75-$3.85

Competition

Green Mountain Coffee Roasters' competitors include Farmer Brothers (FARM), and Starbucks (SBUX). Here is a table comparing these companies.

Company GMCR FARM SBUX Market Cap: 10.06B 320.78M 61.51B Employees: 6,300 1,793 N/A Qtrly Rev Growth (yoy): 0.11 0.08 0.13 Revenue: 4.36B 519.37M 14.89B Gross Margin: 0.37 0.38 0.57 EBITDA: 994.42M 31.93M 2.86B Operating Margin: 0.18 0.00 0.15 Net Income: 483.23M -9.56M 8.30M EPS: 3.16 -0.61 0.01 P/E: 21.36 N/A 8,162.00 PEG (5 yr expected): 1.20 1.23 1.57 P/S: 2.19 0.62 4.12

Green Mountain Coffee Roasters has the lowest PEG ratio among these three companies.

Here is a table of these competitors' insider-trading activities this year.

Company	Insider buying / shares	Insider selling / shares
FARM	6,449	163,458
SBUX	144,873	3,255,192

Only Green Mountain Coffee Roasters has seen intensive insider buying during the last 30 days.

Conclusion

There have been three different insiders buying Green Mountain Coffee Roasters and there have not been any insiders selling Green Mountain Coffee Roasters during the last 30 days. All three of these insiders increased their holdings by more than 10%. Green Mountain Coffee Roasters has an insider ownership of 0.10%.

There are 10 analyst buy ratings, four neutral ratings, and one sell rating with an average price target of $93.09. The stock is trading at a P/E ratio of 21.36 and a forward P/E ratio of 15.49. The company has a book value of $16.96 per share and the stock has a dividend yield of 1.48%. I have a cautiously bullish bias for the stock currently based on the intensive insider buying.

Source: Green Mountain Coffee Roasters: 3 Different Insiders Have Purchased Shares This Week

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in GMCR over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)

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