Stocks with Insider Buying (ROVI, STAG, ESL, SWHC)
When investing in stocks, there are number of different things you should keep a watch on. Earnings, macroeconomic environment, product launches, competitors and management changes are some of the things you should look at when investing in a company. Some investors also look at charts before making buy and sell decisions.
Apart from the things mentioned above, one important thing I recommend keeping an eye on is insider transactions. Today, I want to focus on insider buying activity. When insiders buy shares of their company, it generally means that they are confident about the company’s prospects. So here are some recent insider buys.
Rovi Corporation (NASDAQ: ROVI)
Based in Santa Clara, California, ROVI focuses on powering the discovery and enjoyment of digital entertainment by providing a set of integrated solutions.
Recently, Tom Carson, ROVI’s CEO, bought $225,000 worth of shares in ROVI common stock. According to a filing, Carson purchased 15,000 shares of ROVI at a cost of $15 per share. The purchase is the first one filed by Carson in the past twelve months.
ROVI shares are currently trading around $14.50, well below their 52-week high of $51.83. ROVI’s performance this year has been disappointing. Between January 3, 2012 and September 28, 2012, the stock has fallen 41%.
ROVI reported its most recent quarterly results (Q2) in August. The company posted GAAP revenue of $158.3 million for the quarter ended June 30, 2012, compared to $179 million reported for the same period in the previous year. GAAP net loss for the quarter was $18.5 million, compared to $10.7 million reported for the same period in the previous year.
During the second quarter, ROVI also repurchased 2.1 million shares of its common stock for approximately $50 million.
STAG Industrial Inc. (NYSE: STAG)
Based in Boston, Massachusetts, STAG is a real estate company engaged in the acquisition, ownership and management of single-tenant industrial properties throughout the U.S.
Gregory W. Sullivan, CFO of STAG, recently purchased 3,100 shares of STAG common stock at $16.20 per share. Sullivan has bought STAG shares 13 other times during the past year for a total investment of more than $395,000 at an average of $12 per share.
Sullivan’s latest purchase came just a few days after STAG acquired two warehouses and distribution facilities containing a total of 787,380 square feet for approximately $26 million. The two builders, which are adjacent, are located close to Greenville, South Carolina. Both buildings are fully-leased with an average lease term of 4.5 years.
STAG reported its most recent quarterly results (Q2) in August. For the second quarter of 2012, the company’s cash NOI was approximately $17 million, representing an increase of 14% over the first quarter. Adjusted funds from operations (Adjusted FFO) for the second quarter were approximately $8.6 million, compared to $7.2 million reported for the first quarter. Adjusted FFO attributable to common stockholders was approximately $6.1 million in the second quarter.
STAG shares are trading around $16.25, close to their 52-week high of $16.50. STAG shares have outperformed the S&P 500 this year, gaining more than 41% between January 3, 2012 and September 28, 2012.
Esterline Technologies Corporation (NYSE: ESL)
Esterline Technologies is a designer, manufacturer and marketer of engineered products and systems. The company is based in Bellevue, Washington.
James Morris, who serves as a director of ESL, recently purchased 1,000 shares of ESL common stock. Morris now holds 10,938 shares of ESL common stock.
ESL shares are currently trading around $56.15. In the last trading session, the stock fell more than 2%. ESL shares have been essentially flat so far this year, compared to a gain of 14.56% for the S&P 500.
ESL reported its most recent quarterly results (Q3) on August 30, 2012. For the third quarter ended July 27, 2012, ESL reported earnings from continuing operations of $35.1 million, or $1.12 per diluted share. The company’s sales for the quarter were $485.9 million, compared to sales of $409.5 million reported for the same period in the previous year.
ESL CEO Brad Lawrence last month said that the company expects a rebound to finish the year as discrete events that impacted the third quarter are abating.
Smith & Wesson Holding Corp. (SWHC)
Springfield, Massachusetts-based Smith & Wesson is a provider of products and services for safety, security, protection and sport. The company manufactures a range of handguns, modern sporting rifles, hunting rifles, black powder firearms, handcuffs, and firearm-related products and accessories.
Recently, SWHC’s Director, John Furman, bought 1,500 shares of SWHC common stock. With the latest purchase, Furman now holds 52,100 shares of SWHC common stock.
Furman’s purchase came a few days after SWHC reported its first-quarter financial results. For the first quarter ended July 31, 2012, SWHC reported net sales of $136 million, representing an increase of 48.3% over the same period in the previous year. The increase was driven by string sales of SWHC’s M&P™ product platform.
SWHC’s gross profit for the first quarter was $51.3 million, or 37.7% of net sales. This compares to gross profit of $26.5 million, or 28.9% of net sales reported for the same period in the previous year. Net income from continuing operations for the quarter was record $18.9 million, or $0.28 per share, compared to $2.3 million, or $0.04 per share reported for the same period in the previous year.
James Debney, President and CEO of Smith & Wesson, said recently said that in the first quarter, the company continued to deliver on its commitment to grow and improve profitability by focusing on its core firearm business. Debney added that the company’s results demonstrated that commitment, evidenced by record achievements in first-quarter sales, net income and earnings per share.
SWHC expects net sales for fiscal 2013 to be between $530 million and $540 million.
SWHC shares are currently trading around $11, close to their 52-week high of $11.21. SWHC has outperformed the broad market this year, gaining more than 152% between January 3, 2012 and September 28, 2012.