Since the beginning of the week, there have been three CEOs who’ve made buys into their companies costing them over $100 thousand. These buys all come as the price of the stock is sitting at or near 52-week highs. The following three weeks represent the costliest insider buys coming from CEOs this week.
Howard Hughes Corp. (HHC)
The CEO of Howard Hughes Corp. made a large insider buy this week, costing him nearly $1 million.
CEO David Weinreb bought 10,000 shares of Howard Hughes at $99.56 per share. This cost the CEO a total of $995,600. Since his buy, the price per share has increased 0.94%.
Weinreb’s buy is the first insider transaction since May 2012. Since that buy the price per share has increased approximately 64.81%.
Howard Hughes owns, manages and develops commercial, residential and mixed-use real estate throughout the U.S. The company operates in two lines of business: Master Planned Communities and Strategic Development.
Howard Hughes has a market cap of $4.1 billion; its shares were traded at around $100.50 per share with a P/E ratio of 64.40 and a P/S ratio of 10.100.
The company has seen an earnings growth increase of 98.4% in the last year as well as a 26.6% revenue growth in the past year. The price per share has nearly doubled since June 2012.
The analysis on Howard Hughes reports:
· The company’s revenue has been in decline over the past three years.
· Howard Hughes’ Altman Z-score of 2.02 is in the grey area, which implies that it is in some kind of financial stress.
· The price is inching closer to the 10-year high of $110.66 per share.
There are currently seven gurus that hold stake in Howard Hughes Corp.
ExamWorks Group (EXAM)
Both the CEO and the CFO made insider buys on June 3. These buys come as the company’s price hit a 52-week high.
CEO James Price bought 11,000 shares at an average price of $18.92, costing the CEO a total of $208,120. Price currently holds over 1.25 million shares of ExamWorks stock. Since his most recent buy, the price per share has increased approximately 2.48%.
Executive VP, Treasurer and CFO Jose Fernandez de Castro bought 2,500 shares of ExamWorks at $18.85 per share. This cost the CFO a total of $47,125. Since his buy, the price per share has increased about 2.86%.
ExamWorks provides independent medical examinations, peer and bill reviews, and related services, which it collectively refers to as IME services or the IME industry. The company provides these IME services through its medical panel of approximately 13,500 independently contracted, credentialed physicians and other medical providers.
The analysis on ExamWorks reports:
· The company’s revenue has been in decline for the past three years.
· The company has issued $334.227 million of debt in the past three years.
· The company had operating loss over the past 3 years.
· The price is near a 52-week high of $19.39.
· The P/S ratio is near a one-year high of 1.22.
ExamWorks has a market cap of $688.4 million; its shares were traded at around $19.39 with a P/S ratio of 1.20.
Both Jim Simons and Steven Cohen sold out of their holdings of ExamWorks during the first quarter.
National Health Investors (NHI)
CEO and President James Hutchens bought 1,610 shares of National Health Investors on June 3 at an average price of $62.23 per share. This cost the insider a total of $100,190. Following this buy, the CEO now owns 41,875 shares of National Health. Since his buy, the price has increased approximately 1.88%.
National Health Investors is a REIT which invests in income-producing health care properties primarily in the long-term care and senior housing industries. The company invests in health care properties including skilled nursing facilities, assisted living facilities, medical office buildings, independent living facilities and hospitals.
The analysis on National Health Investors reports:
· The operating margin has been in a five-year decline. The average rate of decline per year is 5.7%.
· The P/E ratio is at a 10-year high.
· The company has issued $150.065 million of debt in the past three years.
National Health Investors has a market cap of $1.79 billion; its shares were traded at around $63.57 with a P/E ratio of 24.70 and a P/S ratio of 17.70. The dividend yield of the company is currently at 4.20%. The company has 12 years of dividend growth. National Health Investors had an annual average earnings growth of 11.3% over the past five years.
The Peter Lynch Valuation Chart shows that National Health Investors appears to be overvalued:
Both Jim Simons and Chuck Royce own shares of National Health Investors.
You can view all CEO insider buys and sells here. Also check out the complete list of insider transactions from corporate executives, directors and 10% owners of companies.
- 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.