Insider Sells over $5 Million: PAY, MIDD
CFO of Verifone Systems Inc. (PAY) Robert R. B. Dykes sold 129,082 shares of his company on April 6, 2011. At an average price of $54.08, the transaction totaled $6,980,755.
Five other insiders sold the stock from March 29 to April 5: President of Verifone Israel Eliezer Yanay; Senior Vice President, Gen. Counsel & Corporate Secretary Albert Liu; Executive Vice President of Integrated Solutions Elmore Waller; Executive Vice President Jeffrey C. Dumbrell; and CEO Douglas Bergeron.
Verifone Holdings Inc., a global leader in secure electronic payment technologies, provides expertise, solutions and services for today with a migration strategy for tomorrow Verifone Systems Inc. has a market cap of $4.71 billion; its shares were traded at around $53.77 with a P/E ratio of 44.8 and P/S ratio of 4.7. Share prices have risen rather consistently since the fourth quarter of 2008, reaching a 52-week high of $58.55 on March 30. The stock has nearly tripled in value in the last year.
Verifone is blazing a trail in mobile payment technology. It is currently rumored to be partnering with Google on a project to use phones as credit cards. In November, it announced its new PAYware Movile secure card payment system for iPhone for small businesses that allows them to capture data by card swipe.
On March 1, the company announced first-quarter net revenues of $284 million, up from $276 million in the previous quarter, and $223 million in the same quarter of fiscal year 2010. It expects net revenues of $280 to $284 in the second quarter and non-GAAP net income per diluted share of $0.42 to $0.43.
The company is also in the process of acquiring Hypercom Corporation. Verifone will sell the U.S. payment systems business of Hypercom to Ingenico S.A. just before the purchase of Hypercom is finalized, reportedly in the second half of 2011. Verifone will keep Hypercom’s non-payment terminal networking products operation.
Middleby Corp. (MIDD)
On April 5, CEO, Chairman and President of Middleby Corp. (MIDD) Selim A. Bassoul sold 54,386 shares of his company at an average price of $94.38. That total transaction amount was $5,132,951.
MIDDLEBY CORP. through its subsidiaries and their operating divisions, is engaged in the manufacture and sale of commercial foodservice equipment and beverage merchandisers. Middleby Corp. has a market cap of $1.75 billion; its shares were traded at around $94.72 with a P/E ratio of 23.4 and P/S ratio of 2.5. Middleby Corp. had an annual average earnings growth of 30% over the past 10 years. GuruFocus rated Middleby Corp. the business predictability rank of 3-star.
Over the last year, Middleby was the ninth most profitable stock in the home building/services market segment, with a net profit margin of 10.13%. Its stock has steadily risen since the middle of 2009, and net sales increased 35.9% in the fourth quarter ended Jan. 1. Net earnings for the fourth quarter were $20,994,000 or $1.13 per share on net sales of $207,233,000. The year prior, it had fourth-quarter net earnings of $17,874,000 or $0.95 per share on net sales of $152,493,000.
Middleby Corp. is in the process of taking over U.K.-based Lincat Group as of an agreement reached on March 31. The company stated the acquisition would provide meaningful growth opportunities in the U.K. market. In 2010, they also acquired two other businesses, PerfectFry and Cozzini. Sales from acquisitions amounted to $21.2 million or 13.9% during the fourth quarter.
“Fourth quarter sales at our Food Processing Group also continued to be strong in the fourth quarter, as we rebounded from a weak market in 2009 in which our customers had deferred capital spending. We anticipate the level of growth will moderate in future quarters in comparison to a stronger 2010, however we remain excited about sales opportunities for the new products developed and introduced over the past eighteen months. Additionally, the expanded selling organization resulting from our recent acquisition of Cozzini will allow us to reach a broadened customer base for the innovative products of our group.” Mr. Bassoul said.
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