This week there was an increase in insider transactions coming from high and mega-capped stocks. These stocks come from a variety of industries, but the two notable insider buys came from beverage making and supplying companies. The most notable insider sells came from the retail industry this past week. Also interesting, the companies reporting insider transactions (minus one) are all ranked highly in the GuruFocus Business Predictability Rankings.
1. Starbucks (SBUX)
This week director Robert Gates bought 3,300 shares of Starbucks stock. These shares traded at an average price of $60.49. Gates spent a total of $199,617 on this buy. The director now holds at least 9,888 shares of Starbucks.
Since Gates’ buy, the price of SBUX has increased by 2.88%.
The director’s insider transaction marks the first insider buy since Jan. 2012.
The company released their Q2 results this past week. Along with the results, the Board also reported the promotion of several corporate executives to leadership roles globally. It is the company’s intention to promote these people in order to stretch Starbucks into a more global arena.
The Q2 results reported:
· Total net revenues up 11% to $3.6 billion.
· The consolidated operating income grew 26% to $544 million.
· The company added 590 new stores, including 337 Teavana stores.
· The company raised its full year EPS target to $2.12-$2.18 from its previous target of $2.06-$2.15.
Some things to note:
· In the past year the revenue per share has grown 11.4%.
· The company is sitting at a 10-year high in FCF.
· The company has shown consistent growth in revenue and earnings.
· The price is currently sitting above the previous 10-year high of $61.67.
· The P/S Ratio is nearing a 5-year high of 3.67.
There are 14 gurus with stake in Starbucks. To view these gurus and the stake they hold, click here.
With its prices up 0.5%, Starbucks trades at $62.18.
2. Dr. Pepper Snapple (DPS)
This week Director David Alexander added 1,000 shares to his stake in Dr. Pepper Snapple. These shares traded at $48.17 per share for a total transaction amount of $48,170. Alexander now holds on to 3,000 shares of DPS. Alexander’s buy marks the first insider buy for the company since July 2012.
Since Alexander’s buy, the price of DPS has increased by 2.14%.
Some of the highlights of Dr. Pepper Snapple’s First Quarter 2013 Results:
- Reported EPS were $.51, up 6% for the quarter. Core EPS were $.53, up 15% for the quarter.
- Year-to-date, the company returned $171 million to the shareholders.
- Net sales increased 1% for the quarter.
Dr. Pepper Snapple is an integrated brand owner, manufacturer and distributor of non-alcoholic beverages in the US, Canada and Mexico with a diverse portfolio of flavored carbonated soft drinks and non-carbonated beverages including teas and juices.
The company’s price is currently sitting above its previous 5-year high price of $48.08. Also, the company’s P/S Ratio is nearing a 5-year high of 1.8.
There are nine gurus that hold stake in Dr. Pepper Snapple. To see these gurus and the shares they hold, click here. Most recently, Ken Fisher added 37,530 shares to his stake of DPS.
Ken Fisher’s holdings of Dr. Pepper Snapple:
With its shares up $49.33, Dr. Pepper Snapple trades at $49.33.
3. Kimberly-Clark (KMB)
In the past week, Kimberly-Clark has reported five different insider sells. These sells come as the price of KMB hits a 10-year high.
The insiders included: President of K-C Healthcare, Joanne Bauer; Group President, Robert Abernathy, Group President of K-C International, Christian Brickman; Vice President and Controller, Michal Azbel; and Mark Buthman.
These five insiders sold a total of 126,283 shares at an average price of $104.76 per share. The insiders brought in a total of $13,224,429 on these sells. Since these sells, the price has dropped an average of -3.9%.
Kimberly-Clark is a global company focused on personal products such as consumer tissue, K-C Professional & Other, personal care and health care brands. The company is principally engaged in the manufacturing and marketing of a wide range of essential products to improve people’s lives.
On May 2, the company declared a regular quarterly dividend of $.81 cents per share. 2013 marks the 41st consecutive year that Kimberly-Clark has increased its dividend and the 79th straight year that it has paid a dividend to shareholders.
The GuruFocus analysis warns that the company’s operating margin has been in a 5-year decline. The average rate of decline per year is -2.7%. The analysis also reports that the company’s dividend payout is too high. The revenue for the company has slowed down in the past twelve months but the revenue is still consistently growing.
KMB data byGuruFocus.com
There are currently 13 gurus that hold stake in Kimberly-Clark. To see these gurus and the stake they hold, click here.
To view a complete dividend analysis on Kimberly-Clark, click here.
With its shares down 0.91%, Kimberly-Clark trades at $104.42.
4. Texas Roadhouse (TXRH)
This week Chairman and CEO of Texas Roadhouse, Kent Taylor, sold a massive 430,000 shares of his company. The shares traded at an average price of $23.13 for a total transaction amount of $9,945,900.
Things to look for in Texas Roadhouse:
· The company has shown predictable revenue and earnings growth
· The operating margin is expanding.
· The price is sitting above its former 10-year high in price of $21.06.
Things to keep an eye on with Texas Roadhouse:
· The dividend yield is close to a 1-year low.
· The P/E Ratio is close to a 5-year high of 22.78.
· The P/S Ratio is close to a 2-year high of 1.24.
Texas Roadhouses’ price, revenue per share and EPS:
TXRH data by GuruFocus.com
Texas Roadhouse is a restaurant chain that operates approximately 365 restaurants in 47 states.
Taylor’s sell came right as the company released its first quarter earnings statement which reported that the company’s revenue was up 11% from the first quarter of 2012. The net income increased 39% from the first quarter of 2012 to $0.37 per diluted share. The company also reported the opening of three new company and two new franchise restaurants.
There are four gurus that hold stake in Texas Roadhouse. To see these gurus and the shares they hold, click here.
With its prices up 0.63% today, Texas Roadhouse trades at $23.85.
5. Under Armour (UA)
Under Armour reported one significant insider sell this week. President, CEO and Chairman Kevin Plank sold a total of 292,500 shares of Under Armour on May 2. The shares traded at an average price of $56.66. Plank brought in a total of $16,573,050 with this sell.
Since Plank’s last sell in March the price of Under Armour has increased 16.04%.
The GuruFocus analysis shows that the operating margin has been in a 5-year decline. The average rate of decline per year is -2.5%. Despite the operating margin, the per share revenue has shown consistent growth and predictable revenue. The price of Under Armour is almost at a 10-year high of $60.03.
UA data byGuruFocus.com
Earlier this year Michael Baron of the guru firm Baron Funds commented on Under Armour:
Sales were weaker in the most recent reporting period despite initiatives in women’s products and footwear. Investors were concerned about the Christmas season, and some observed discounting at key distributors. We believe margins will remain strong due to good inventory control.
Under Armour is an athletic clothing company that’s primary focus is the design, development, marketing and distribution of technologically advanced, branded performance products for men, women and youth.
In the company’s first quarter financials they reported a 23% net revenue growth to $472 million. The net income decreased 47% to $8 million as compared to $15 million in the first quarter of 2012. The diluted earnings per share were $0.07.
There are five gurus that currently hold Under Armour. To see the complete list of these gurus and the shares they hold, click here.
- 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.