2iQ Insider Brief: Air Transport Services Group(ATSG US) Equitrans Midstream Corporation(ETRN US) WillScot Corporation (WSC US)

Kaloyan Kolev 5 April 2019

Air Transport Services Group (ATSG: US)

 12-month performance: -4%
Insider activity: Bullish
Buying pattern: Buying from multiple directors including CEO
Recent news: Announced deal with Amazon 

Air Transport Services Group is a leading provider of air cargo transportation services. The company provides airline operations, aircraft maintenance, aircraft leases, and other support services primarily to the cargo transportation and package delivery industries. The stock is listed on the NASDAQ and currently has a market capitalisation of $1.4 billion.

 

ATSG shares jumped in late December on news that Amazon had expanded its relationship with the cargo aircraft operator. This looks to be an exciting development for the group, and several brokers upgraded their price targets for the stock on the back of this news. Analysts at Imperial Capital – who currently have a $28 price target for the stock – believe that the group’s relationship with Amazon could help it generate "strong revenue and earnings growth" in the years ahead.

 ATSG US

Source: 2iQ Research

Looking at recent insider transaction activity at ATSG, we think the stock could be poised to move higher. We say this because since the shares have pulled back a little in recent weeks, a number of top-level directors have stepped in to buy, and we see this as a bullish signal. Those buying have included President/CEO Joseph Hete, who recently spent $50,100 on shares, as well as board member and industry veteran Robert Coretz, who spent $501,250 on the stock. With the company recently reporting strong Q4 results and six separate directors buying in March, we think the outlook for the stock is favourable.

 

Equitrans Midstream Corporation (ETRN: US) 

12-month performance: N/A
Insider activity: Bullish
Buying pattern: Buying from multiple directors including CEO, CFO and COO
Recent news: Recent spin off from EQT Corporation 

Equitrans Midstream Corporation is a natural gas transmission company headquartered in Pittsburgh. The group is one of the largest natural gas gatherers and transmission pipeline operators in the US, with a premier asset footprint in the Marcellus and Utica Shale region. The stock is listed on the New York Stock Exchange and currently has a market capitalisation of $5.5 billion.

 

Equitrans Midstream Corp was only listed on the NYSE in late October after the stock was spun off by parent company EQT Corporation, and since then it has mainly trended sideways. Currently, the shares trade at around the $21.50 mark. However, looking at analyst research, a number of brokers appear to be bullish on ETRN’s prospects, and several have placed price targets of $25 or higher on the stock. With that in mind, could now be a good time to go long?

 ETRN US-1

Source: 2iQ Research

Analysing recent insider transaction activity at Equitrans Midstream, we certainly think the shares look interesting right now. This is due to the fact that since late March a number of top-level directors have been buying shares, which suggests these insiders expect the stock to rise. Those buying have included President/CEO Thomas Karam, who recently spent $5.1 million on shares, CFO Kirk Oliver, who spent $100,238 on shares, and COO Diana Charletta, who purchased $240,203 worth of stock. With three top directors buying a significant number of shares in ETRN in the last few weeks, we think the stock could be worth keeping a close eye on.

 

WillScot Corporation (WSC: US) 

12-month performance: -12%
Insider activity: Bullish
Buying pattern: Buying from multiple directors including CEO
Recent news: Reaffirmed 2019 guidance

 WillScot Corporation is a US company that specialises in modular space and storage solutions. Providing its services to various sectors, including construction, education, healthcare, transportation, and energy, the group’s modular space solutions include mobile office trailers, section modular offices, sales offices, container offices, and stackable offices. The stock is listed on the NASDAQ and currently has a market capitalisation of $1.4 billion.

 

Shares in WillScot fell sharply in the fourth quarter of 2018, as investor concern over the possibility of a global recession increased. Beginning the fourth quarter near the $18 mark, by the end of the year the stock was trading under $10. However, this year, news from the company has not been as bad as perhaps some investors were fearing, and the company recently reaffirmed its outlook for 2019.

 WSC US

Source: 2iQ Research

WillScot shares have already bounced 30% so far this year, yet looking at recent insider transaction activity, we think the stock could offer scope for more gains. We say this because since mid-March a number of top-tier directors have stepped up to buy WillScot shares, and we see this as a bullish signal. Those buying have included President/CEO Bradley Soultz, who recently spent nearly $400,000 on stock, as well as board member and founding partner of London-based private equity firm TDR Capital Stephen Robertson, who spent $1.2 million on WSC stock. In total, we have observed significant buying activity from five separate directors in the last few weeks. With the shares still well off their 52-week high, and multiple insiders buying, we think the outlook for the stock is favourable.

Disclaimer: Neither 2iQ Research GmbH nor its content providers are responsible for any damages or losses arising from any use of this information.

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