Showing posts with label Stocks insiders love. Show all posts
Showing posts with label Stocks insiders love. Show all posts

Thursday, July 28, 2016

5 Stocks Insiders Love Right Now


Insiders at these companies have been scooping up shares of their own stock lately.

Image result for insider buying

Corporate insiders sell their own companies' stock for a number of reasons.
They might need the cash for a big personal purchase such as a new house or yacht, or they might need the cash to fund a charity. Sometimes they sell as part of a planned selling program that they have put in place for diversification purposes, which allows them to sell stock in stages instead of selling all at one price.
Other times they sell because they think their stock is overvalued and the risk/reward is no longer attractive. Some even dump their own stock because they have inside knowledge that a competitor is eating their lunch and stealing market share.
But insiders usually buy their own shares for one reason: They think the stock is a bargain and has tremendous upside.
The key word in that last statement is "think." Just because a corporate insider thinks his or her stock is going to trade higher, that doesn't mean it will play out that way. Insiders can have all the conviction in the world that their stock is a buy, but if the market doesn't agree with them, the stock could end up going nowhere. Also, I say "usually" because sometimes insiders are loaned money by the company to buy their own stock. Those loans are often sweetheart deals and shouldn't be viewed as organic insider buying.
Stocks with notable insider activity is something that I tweet about on a regular basis. These are also the exact type of stocks that I love to trade and alert in real-time.
At the end of the day, it's institutional money managers running big mutual funds and hedge funds that drive stock prices, not insiders. That said, many of these savvy stock operators will follow insider buying activity when they agree with the insider that the stock is undervalued and has upside potential. This is why it's so important to always be monitoring insider activity but twice as important to make sure the trend of the stock coincides with the insider buying.
Recently, a number of companies' corporate insiders have bought large amounts of stock. These insiders are finding some value in the market, which warrants a closer look at these stocks.
Wintrust Financial
One financial player that insiders are loading up on here is Wintrust Financial  (WTFC) , which provides banking and other financial products and services to customers in the Chicago metropolitan area and in southern Wisconsin. Insiders are buying this stock into big strength, since shares have soared higher by 33.5% over the last six months.
Image result for Wintrust FinancialWintrust Financial has a market cap of $2.7 billion and an enterprise value of $3 billion. This stock trades at a fair valuation, with a trailing price-to-earnings of 17 and a forward price-to-earnings of 14.2. Its estimated growth rate for this year is 21.5%, and for next year it's pegged at 6.2%. This is not a cash-rich company, since the total cash position on its balance sheet is $968.46 million and its total debt is $1.23 billion.
A director just bought 9,500 shares, or about $504,000 worth of stock at $53.11 per share. From a technical perspective, Wintrust Financial is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending over the last month and change, with shares moving higher off its low of $46.62 a share to its recent high of $54 a share. During that uptrend, shares of Wintrust Financial have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed this stock within range of triggering a big breakout trade above some key near-term overhead resistance levels.
If you're bullish on Wintrust Financial, then I would look for long-biased trades as long as this stock is trending above its 50-day moving average of $51.63 a share and then once it breaks out above some near-term overhead resistance levels at $54 to $54.09 a share and then above its 52-week high of $55 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average volume of 362,897 shares. If that breakout fires off soon, then this stock will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $60 to $65 a share.

Delta Air Lines
Another stock that insiders are active in here is Delta Air Lines  (DAL) , which provides scheduled air transportation for passengers and cargo in the U.S. and internationally. Insiders are buying this stock into notable weakness, since shares have fallen by 13.6% over the last six months.
Delta Air Lines has a market cap of $28.8 billion and an enterprise value of $34.4 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 6.2 and a forward price-to-earnings of 6.5. Its estimated growth rate for this year 27.1%, and for next year it's pegged at 1.2%. This is not a cash-rich company, since the total cash position on its balance sheet is $2.96 billion and its total debt is $7.80 billion. This stock currently sports a dividend yield of 1.3%.
Image result for Delta Air Lines
From a technical perspective, Delta Air Lines is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been uptrending over the last month and change, with shares moving higher off its low of $32.60 a share to its recent high of $41.35 a share. During that uptrend, shares of Delta Air Lines have been making mostly higher lows and higher highs, which is bullish technical price action.
If you're bullish on Delta Air Lines then I would look for long-biased trades as long as this stock is trending above some near-term support levels at $38.27 or at $37 a share and then once it breaks out above some near-term overhead resistance levels at $39.20 to its 50-day moving average of $39.80 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 11.81 million shares. If that breakout takes hold soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $41.35 to $43, or even $44.50 to its 200-day moving average of $45.36 a share.

Wednesday, February 24, 2016

5 Stocks Insiders Love Right Now


Corporate insiders sell their own companies' stock for a number of reasons.
They might need the cash for a big personal purchase such as a new house or yacht, or they might need the cash to fund a charity. Sometimes they sell as part of a planned selling program that they have put in place for diversificationpurposes, which allows them to sell stock in stages instead of selling all at one price.
Image result for insider buying stocksOther times they sell because they think their stock is overvalued and the risk/reward is no longer attractive. Some even dump their own stock because they have inside knowledge that a competitor is eating their lunch and stealing market share. 
But insiders usually buy their own shares for one reason: They think the stock is a bargain and has tremendous upside.
The key word in that last statement is "think." Just because a corporate insider thinks his or her stock is going to trade higher, that doesn't mean it will play out that way. Insiders can have all the conviction in the world that their stock is a buy, but if the market doesn't agree with them, the stock could end up going nowhere. Also, I say "usually" because sometimes insiders are loaned money by the company to buy their own stock. Those loans are often sweetheart deals and shouldn't be viewed as organic insider buying.
At the end of the day, it's institutional money managers running big mutual funds and hedge funds that drive stock prices, not insiders. That said, many of these savvy stock operators will follow insider buying activity when they agree with the insider that the stock is undervalued and has upside potential. This is why it's so important to always be monitoring insider activity but twice as important to make sure the trend of the stock coincides with the insider buying.
Recently, a number of companies' corporate insiders have bought large amounts of stock. These insiders are finding some value in the market, which warrants a closer look at these stocks.
Xenoport

 

One biopharmaceutical stock that insiders are loading up on here is Xenoport (XNPT - Get Report) , which focuses on developing and commercializing a portfolio of product candidates for the treatment of neurological and other disorders. Insiders are buying this stock into large weakness, since shares have dropped by 29.7% over the last six months.
Image result for XenoportXenoport has a market cap of $274 million and an enterprise value of $234 million. This stock trades at a premium valuation, with a price-to-sales of 7.97 and a price-to-book of 8.89. Its estimated growth rate for this year is -69.1%, and for next year it's pegged at 38.7%. This is just barely a cash-rich company, since the total cash position on its balance sheet is $152.39 million and its total debt is $111.64 million.
From a technical perspective, Xenoport is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been uptrending a bit over the last few weeks, with shares moving higher off its low of $3.70 a share to its intraday high on Tuesday of $4.43 a share. During that uptrend, shares of Xenoport have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed this stock within range of triggering a near-term breakout trade.
If you're bullish on Xenoport, then I would look for long-biased trades as long as this stock is trending above some near-term support levels at $4 or above its recent low of $3.70 a share and then once it breaks out above its 20-day moving average of $4.50 a share to some more key resistance around $4.75 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 938,954 shares. If that breakout takes hold soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $4.98 to $5.25, or even $5.30 to around $5.70 a share.
Seattle Genetics

 

Image result for seattle genetics
Another biotechnology player that insiders are adding a ton of stock in here is Seattle Genetics (SGEN - Get Report) , which develops and commercializes antibody-based therapies for the treatment of cancer. Insiders are buying this stock into big weakness, since shares have dropped sharply by 28.3% over the last six months.
Seattle Genetics has a market cap of $4.1 billion and an enterprise value of $3.4 billion. This stock trades at a premium valuation, with a price-to-sales of 12.68 and a price-to-book of 6.21. Its estimated growth rate for this year is -5.4%, and for next year it's pegged at 22.4%. This is a cash-rich company, since the total cash position on its balance sheet is $649.65 million and its total debt is zero.
From a technical perspective, Seattle Genetics is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been uptrending a bit over the last few weeks, with shares moving higher off its low of $26.02 to its recent high of $32.80 a share. During that uptrend, this stock has been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of Seattle Genetics within range of triggering a near-term breakout trade above some key overhead resistance levels.
If you're in the bull camp on Seattle Genetics, then I would look for long-biased trades as long as this stock is trending above some near-term support at $29.09 a share or above more support around $28 a share and then once it breaks out above its 20-day moving average of $31.23 a share to some more key resistance levels at $32.80 to $34.36 a share with volume that hits near or above its three-month average action of 1.25 million shares. If that breakout materializes soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $36.60 to around $38.50, or even its 200-day moving average of $41.99 a share.

Monday, September 7, 2015

Insider Weekends - September 4, 2015


Image result for insider tradingSummary

Insider buying declined sharply last week.
Notable insider buys this week: DG, NSH, SNR, FMC, and FIG.
Notable insider sales this week: SMCI, QVCA, DXCM, LMCA, and DFS.
Welcome to edition 272 of Insider Weekends. Insider buying declined sharply last week, with insiders buying $39.54 million of stock, compared to $170.5 million in the week prior. Selling also declined, with insiders selling $508.05 million of stock last week, compared to $899.89 million in the week prior.
Image result for insider tradingSell/Buy Ratio: The insider Sell/Buy ratio is calculated by dividing the total insider sales in a given week by total insider purchases that week. The adjusted ratio for last week increased to 12.85. In other words, insiders sold almost 13 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 5.28. Most of this decline in insider activity probably had to do with the start of a new quarter, when insider activity is usually muted ahead of earnings releases. We are calculating an adjusted ratio by removing transactions by funds and companies, and trying as best as possible only to retain information about insiders and 10% owners who are not funds or companies.
(Insider Sell/Buy Ratio September 4, 2015)
Note: As mentioned in the first post in this series, certain industries have their preferred metrics, such as same-store sales for retailers, funds from operations (FFO) for REITs and revenue per available room (RevPAR) for hotels, that provide a better basis for comparison than simple valuation metrics. However, metrics like Price/Earnings, Price/Sales and Enterprise Value/EBITDA included below should provide a good starting point for analyzing the majority of stocks.

Notable Insider Buys:

1. Dollar General Corporation (NYSE:DG): $72.56
Shares of this discount store chain were acquired by 2 insiders:
  • Director Michael M. Calbert acquired 38,000 shares, paying $72.47 per share, for a total amount of $2.75 million. Mr. Calbert increased his stake by 221.20% to 55,179 shares with this purchase.
  • Director William C. Rhodes III acquired 5,000 shares, paying $73.98 per share, for a total amount of $369,897. These shares were purchased indirectly through a trust.
P/E: 19.39Forward P/E: 15.88Industry P/E: 30.36
P/S: 1.08Price/Book: 3.92EV/EBITDA: 10.8
Market Cap: $21.38BAvg. Daily Volume: 2,683,62052-week Range: $57.09-81.42

2. NuStar GP Holdings, LLC (NYSE:NSH): $32.23

Director William E. Greehey acquired 70,097 shares of this oil & gas pipelines company, paying $33.57 per share, for a total amount of $2.35 million. Mr. Greehey increased his stake by 0.83% to 8,549,324 shares with this purchase.
P/E: 18.58Forward P/E: 17.24Industry P/E: 24.59
P/S: 17.69Price/Book: 4.5EV/EBITDA: N/A
Market Cap: $1.38BAvg. Daily Volume: 147,13552-week Range: $29.74-44.07

3. New Senior Investment Group Inc. (NYSE:SNR): $11.21

Director Wesley R. Edens acquired 200,000 shares of this senior facilities REIT, paying $11.36 per share, for a total amount of $2.27 million. These shares were purchased indirectly through a trust.
This is an interesting REIT with an unusually high dividend yield of 9.6% that was spun out of another REIT called Newcastle Investment Corp. (NYSE:NCT) late last year. After hitting a high of over $20 during the first few days of trading, the stock has been in a steady decline since. A secondary offering priced at $13.75/share in June of this year certainly didn't help matters. There are very few companies like Tesla Motors (NASDAQ:TSLA) that can get away with several rounds of stock offerings and still see their price levitate.
P/E: N/AForward P/E: 7.14Industry P/E: N/A
P/S: 3.24Price/Book: 1.17EV/EBITDA: 18.45
Market Cap: $970.05MAvg. Daily Volume: 1,139,04052-week Range: $10.67-20.2

4. FMC Corp. (NYSE:FMC): $41.48

Shares of this diversified chemical company were acquired by 5 insiders:
  • Director G. Peter D'Aloia acquired 15,000 shares, paying $40.95 per share, for a total amount of $614,250. Mr. Daloia increased his stake by 47.21% to 46,771 shares with this purchase.
  • Director Vincent R. Volpe acquired 12,200 shares, paying $40.94 per share, for a total amount of $499,505. Mr. Volpe increased his stake by 39.89% to 42,784 shares with this purchase.
  • Director Paul J. Norris acquired 7,000 shares, paying $41.02 per share, for a total amount of $287,140. Mr. Norris increased his stake by 15.99% to 50,780 shares with this purchase.
  • Director Robert C. Pallash acquired 3,680 shares, paying $41.52 per share, for a total amount of $152,794. Mr. Pallash increased his stake by 12.48% to 33,173 shares with this purchase.
  • Director Dirk A. Kempthorne acquired 485 shares, paying $40.97 per share, for a total amount of $19,873. Mr. Kempthorne increased his stake by 2.21% to 22,391 shares with this purchase.
P/E: 6.69Forward P/E: 10.45Industry P/E: 16.45
P/S: 1.4Price/Book: 2.61EV/EBITDA: 9.28
Market Cap: $5.54BAvg. Daily Volume: 1,014,08052-week Range: $39.45-66.65

5. Fortress Investment Group LLC (NYSE:FIG): $5.39

Principal Wesley R. Edens acquired 200,000 shares of this investment management company, paying $6.06 per share, for a total amount of $1.21 million.
P/E: 11.4Forward P/E: 5.86Industry P/E: 15.13
P/S: 0.75Price/Book: 2EV/EBITDA: 3.38
Market Cap: $1.16BAvg. Daily Volume: 783,16252-week Range: $4.16-8.65
You can view the full list of purchases from this Insider Buying page.

Notable Insider Sales:

1. Super Micro Computer, Inc. (NASDAQ:SMCI): $24.24

Shares of this high-performance server solutions provider were sold by 2 insiders:
  • President and CEO Charles Liang sold 97,735 shares for $25.50, generating $2.49 million from the sale.
  • VP - Worldwide Sales Cheng-hsien Phidias Chou sold 4,000 shares for $26.95, generating $107,786 from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
P/E: 11.94Forward P/E: 8.69Industry P/E: 19.54
P/S: 0.59Price/Book: 1.9EV/EBITDA: 7.59
Market Cap: $1.15BAvg. Daily Volume: 655,72052-week Range: $21.5-42

2. Liberty Interactive Corporation (NASDAQ:QVCA): $27.27

Chairman of the Board John C. Malone sold 128,000 shares of this online commerce company for $29.53, generating $3.78 million from the sale.
P/E: 23.03Forward P/E: 18.06Industry P/E: 51.24
P/S: 1.27Price/Book: 2.27EV/EBITDA: 9.87
Market Cap: $12.57BAvg. Daily Volume: 2,170,83052-week Range: $22.37-31.62

3. DexCom, Inc. (NASDAQ:DXCM): $88.31

Shares of this medical devices company were sold by 3 insiders:
  • CTO Jorge A. Valdes sold 20,000 shares for $91.22, generating $1.82 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
  • EVP - Strategy and Corp. Dev. Steven Robert Pacelli sold 19,854 shares for $94.67, generating $1.88 million from the sale.
  • SVP - Operations Jeffrey Moy sold 8,881 shares for $90.61, generating $804,683 from the sale. These shares were sold indirectly through a trust.
P/E: N/AForward P/E: 267.61Industry P/E: 31.12
P/S: 22.07Price/Book: 41.24EV/EBITDA: -675.14
Market Cap: $7.07BAvg. Daily Volume: 1,056,95052-week Range: $38.77-98.85