Insiders only buy company shares for one reason: They believe company shares are trading at a deep discount. Insiders of the five companies listed below have purchased shares of their company; by taking a deeper look into each company, investors can identify and invest in the shares with offer the most upside potential.
Air Transportation Service Group (NASDAQ:ATSG) provides equipment and freight services to the transportation industry. Shares are currently trading just under $6, up 33% from their 52-week low of $4 and down from highs of $8.50. Insiders recently purchased almost 55,000 shares at the commencement of 2012.
Air Transportation has a market cap of $380 million and an enterprise value approaching $700 million. Recent insider purchases may prove to be a lucrative one as the company is currently trading a forward price-to-earnings ratio of 6.8 and a price-to-book ratio of 1.2. The company has $29 million in cash on hand and $336 million of total debt outstanding.
Lingand Pharmaceuticals (NASDAQ:LGND) engages in the development and acquisition of royalty revenues generating pharmaceutical assets, the company partners with large cap pharmaceutical corporations such as Brystol-Myers Squibb (BMK), Pfizer (NYSE:PFE), GlaxoSmithKline (NYSE:GSK) and many others. Shares are current trading around $15, up 67% from their 52-week lows of $9 and down from highs of $16. Insiders have recently purchased over 70,000 shares.
Lingand Pharmaceuticals has a market cap of $295 million and an enterprise value of $315 million. The company is priced at a premium compared the industry. Shares are trading at a P/E of 29 in comparison to the industry average of 17. The company has just over $17 million of cash on hand and only $30 million of total debt on hand. The company is a growing company, which had a strong 2011; revenues grew from $23.5 million in 2010 to $30 million, the company also managed to retain $10.2 million as profits compared to the net loss of $10.4 million reported in 2010.
Insiders of National Penn Bancshares (NASDAQ:NPBC) have recently snapped up 220,000 shares in the open market. Despite trading 4% off of 52-week highs, insiders evidently believe the company is trading at a deep discount at $9 a share. National Penn is a regional bank which operates in the northeastern region of the U.S.; the company also pays shareholders a healthy dividend of 2.2%.
National Penn has a market share of $1.4 billion and an enterprise value of $2.3 billion. National Penn is also trading at a premium. Shares are trading at a P/E of 16 compared to the industry average of 13. Nevertheless, the company has outperformed its competitors in terms of quarterly revenue and profit growth, 16% and 140% respectively.
The company has a relatively strong balance sheet of $1.4 billion of total debt and $450 million of total cash on hand; both figures include customer deposits. In 2011 the company increased profitability; adjusted earnings per common share were $0.59 compared to $0.30 in 2010.
Jamba (NASDAQ:JMBA) owns and operates a chain of nationwide restaurants which specialized in beverages. Shares of Jamba are currently trading near $1.75, down from 52-week highs of $2.50 and up from lows of $1.20. As of late November 2011, insiders took advantage of relatively discounted prices and purchased over 10,000 shares in the open market.
Jamba is a small-capitalization company with a market cap of $120 million and an enterprise value of $93 million. Shares are currently trading at a P/S of 0.53 — a discount compared to the industry average of 0.9. However, the company has reported a loss of $13.5 million (trailing 12 months). On the contrary the company has reported a profit in the last two quarters. Jamba Juice does have a strong balance sheet, which consists of no debt and $25 billion of cash on hand.
BB&T (NYSE:BBT) is a regional lender with branch locations in various states. Shares of the lender are trading above $29, just cents off their 52-week high and 50% above their lows of $19. The company pays an annual dividend of $0.64 a share, which currently yield 2.2%. Insiders have recently purchased almost 30,000 shares near the current price.
BB&T has a market cap of $20.5 billion and an enterprise value of $41 billion. The company is trading at a slight premium compared to its competitors. Shares are trading at a P/E of 16, compared to the industry average 14. The company’s recent impressive performance is certainly factored into share prices; revenues and profits have grown 27% and 88% respectively on a quarterly year-over-year basis. The company has almost $5 billion of cash on hand and a total of $25 billion in total debt outstanding.