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Weekly Top Insider Buys: GE, EMR, RAI, VRX, SLE

May 22, 2011 | About:
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gururk

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Weekly highlight of top insider buys: General Electric (GE), Emerson (EMR), Reynolds American Inc. (RAI), Valeant Pharmaceuticals International (VRX), and Sara Lee Corp. (SLE).

General Electric (GE): Director William G. Beattie Bought 5,000 Shares

Director of General Electric, William G. Beattie, bought 5,000 shares on 5/13/2011 at an average price of $19.62. General Electric is one of the largest and most diversified industrial corporations in the world. General Electric has a market cap of $208.34 billion; its shares were traded at around $19.62 with a P/E ratio of 15.6 and P/S ratio of 1.4. The dividend yield of General Electric stocks is 2.8%. General Electric had an annual average earnings growth of 13.1% over the past 10 years.

On April 21, General Electric announced strong first-quarter 2011 operating earnings of $3.6 billion, up 58%, or $0.33 per share, up 65%, from the first quarter of 2010. GAAP earnings from continuing operations (attributable to GE) were $3.4 billion, or $0.31 per share, both up 48% year-over-year. Revenues grew to $38.4 billion for the quarter, up 6% from a year ago. In addition, GE raised its quarterly dividend by $0.01 to $0.15 effective in the third quarter of 2011. This is the third dividend increase declared in the last 12 months and reflects GE leadership’s confidence in the company’s business performance.

General Electric is in the portfolios of Whitney Tilson, Jean-Marie Eveillard, Kenneth Fisher, James Barrow, NWQ Managers, Tom Gayner, Brian Rogers, Chris Davis, Dodge & Cox, Charles Brandes, Richard, David Dreman, Ruane Cunniff, Arnold Van Den Berg, Mario Gabelli, and Mark Hillman.

This month, Buy: Director William G Beattie bought 5,000 shares of GE stock. Buy: Chairman and CEO Jeffrey R Immelt bought 4,000 shares in March.

Emerson (EMR): Exec. VP Planning & Develop. Craig W. Ashmore Bought 2,000 Shares

Exec. VP Planning & Develop. of Emerson, Craig W. Ashmore, bought 2,000 shares on March 16, 2011, at an average price of $54.09. Emerson is engaged principally in the worldwide design, manufacture and sale of a broad range of electrical, electromechanical and electronic products and systems. Emerson has a market cap of $40.79 billion; its shares were traded at around $54.09 with a P/E ratio of 18.3 and P/S ratio of 1.9. The dividend yield of Emerson stocks is 2.5%. Emerson had an annual average earnings growth of 9.6% over the past 10 years. GuruFocus rated Emerson the business predictability rank of 2.5-star.

On February 1, Emerson announced that net sales for the first quarter ended Dec. 31, 2010, were $5.5 billion, an increase of 15% from the prior-year quarter. Underlying sales increased 11% in the quarter, which excludes a 5% impact from acquisitions and a 1% unfavorable impact from currency exchange rates. Underlying sales growth was balanced globally, with the U.S. increasing 10% and international sales increasing 11%.

Emerson is in the portfolios of Kenneth Fisher, Tom Gayner, Ruane Cunniff, John Keeley, Brian Rogers, David Dreman, James Barrow, Tweedy Browne, Arnold Van Den Berg, and Mario Gabelli.

Last week, Buy: Exec. VP - Planning & Develop. Craig W Ashmore bought 2,000 shares of EMR stock.

Reynolds American Inc. (RAI): Director John J. Zillmer Bought 10,000 Shares

Director of Reynolds American Inc., John J. Zillmer, bought 10,000 shares on 5/18/2011 at an average price of $39.28. Reynolds American Inc. is the parent company of R.J. Reynolds American Inc. has a market cap of $22.9 billion; its shares were traded at around $39.28 with a P/E ratio of 15.5 and P/S ratio of 2.7. The dividend yield of Reynolds American Inc. stocks is 5.4%. Reynolds American Inc. had an annual average earnings growth of 29.3% over the past 10 years.

On April 21, Reynolds American Inc. announced first-quarter 2011 adjusted EPS of $0.59, up 5.4% from the prior-year quarter, driven by strong performance on key brands, higher pricing and productivity improvements. Adjusted results exclude the impact of first-quarter 2010 changes in federal health-care laws and the Canadian governments’ settlements, as well as first-quarter 2011 implementation costs related to plant closings and tax items. First-quarter reported EPS was $0.60, up 328.6%.

Reynolds American Inc. is in the portfolios of James Barrow, David Winters, Richard Aster Jr, and Joel Greenblatt.

Last week, Buy: Director John J Zillmer bought 10,000 shares of RAI stock.

Valeant Pharmaceuticals International (VRX): Director Norma Ann Provencio Bought 2,000 Shares

Director of Valeant Pharmaceuticals International, Norma Ann Provencio, bought 2,000 shares on 05/16/2011 at an average price of $49.52. Valeant Pharmaceuticals International, Inc. is a multinational specialty pharmaceutical company that develops, manufactures and markets a broad range of pharmaceutical products primarily in the areas of neurology, dermatology and branded generics. Valeant Pharmaceuticals International has a market cap of $15.07 billion; its shares were traded at around $49.52 with a P/E ratio of 47.2 and P/S ratio of 12.8.

On May 9, Valeant Pharmaceuticals International reported results for the first quarter of 2011. Total revenue was $565.0 million in the first quarter of 2011 as compared to $219.6 million in the first quarter of 2010. Included in total revenue was $36.0 million of alliance and royalty revenue related to the out-license of product rights for Cloderm, a mid-potency steroid with an annual revenue run rate of approximately $7 million, that was completed on March 31, 2011. Product sales were $500.4 million in the first quarter of 2011, as compared to $212.0 million in the year-ago quarter.

Valeant Pharmaceuticals International is in the portfolios of Glenn Greenberg, John Griffin, Ruane Cunniff, Private Capital, Jean-Marie Eveillard, Julian Robertson, Andreas Halvorsen, and John Hussman.

Last week, Buy: Director Norma Ann Provencio bought 2,000 shares of VRX stock. In March, Buy: Director Katharine Berghuis Stevenson and Buy: Director Norma Ann Provencio bought shares. Sell: Holdings, L.p. Valueact sold 4,498,180 shares this month.

Sara Lee Corp. (SLE): Executive Chairman Jan Bennink Bought 51,400 Shares

Executive Chairman of Sara Lee Corp., Jan Bennink, bought 51,400 shares on 05/13/2011 at an average price of $19.6. Sara Lee Corporation is a global manufacturer and marketer of high-quality, brand-name products for consumers throughout the world. Sara Lee Corp. has a market cap of $12.2 billion; its shares were traded at around $19.6 with a P/E ratio of 25.5 and P/S ratio of 1.1. The dividend yield of Sara Lee Corp. stocks is 2.4%.

On May 5, Sara Lee Corp. reported earnings for the third quarter of fiscal 2011 and announced portfolio changes. Results included a 6% increase in adjusted net sales from continuing operations to $2.2 billion. Reported net sales increased 7%.11% decline in adjusted operating income from continuing operations. Reported operating income from continuing operations declined 6%.

Sara Lee Corp. is in the portfolios of Daniel Loeb, Jean-Marie Eveillard, Donald Yacktman, Kenneth Fisher, Mario Gabelli, Charles Brandes, and George Soros.

Last week, Buy: Executive Chairman Jan Bennink bought 51,400 shares of SLE stock. Sell: Director Jeffrey W Ubben sold 7,000,000 shares this month.

For the complete list of stocks that bought by their company executives, go to: Insider Buys.
  • CEO Buys, CFO Buys: Stocks that are bought by their CEO/CFOs.
  • Insider Cluster Buys: Stocks that multiple company officers and directors have bought.
  • Double Buys:: Companies that both Gurus and Insiders are buying
  • Triple Buys: Companies that both Gurus and Insiders are buying, and Company is buying back.

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