This past week we saw CEOs from three different companies reporting insider buys with transaction amounts costing over $100,000. Fifth Street Finance (FSC)
CEO Leonard Tannenbaum added 20,000 shares to his stake on June 20. These shares traded at an average price of $9.94 per share for a total purchase amount of $198,000 for Tannenbaum. Since his buy, the price per share has dropped approximately -0.5%. As of his most recent purchase, the CEO holds nearly 2 million shares of Fifth Street Finance.
President and Secretary Bernard Berman added a much smaller 1,000 shares to his holdings. He bought these shares for $9.95 per share for a total transaction amount of $9,950. Since his buy, the price per share has decreased approximately -0.6%. Berman currently holds at least 20,968 shares of FSC.
Fifth Street Finance is a specialty finance company that lends to and invests in small and mid-sized companies in connection with investments by private equity sponsors. The company’s investment objective is to maximize its portfolio’s total return by generating current income from its debt investments and capital appreciation from its equity investments.
Fifth Street Finance announced the closing of its acquisition of Healthcare Finance Group on June 13. FSC appointed Dan Chapa as the new CEO of Healthcare Finance.
Fifth Street Finance’s historical P/S and P/B ratios:
Fifth Street Finance’s price and P/E ratio:
The analysis on Fifth Street reports:
· Revenue has been in decline for the past three years.
· The company has issued $746.755 million in debt over the past three years.
· The P/E ratio is nearing a 5-year low of 9.5.
According to the Peter Lynch Valuation Chart, Fifth Street Finance appears to be undervalued:
Fifth Street Finance has a market cap of $1.18 billion; its shares were traded at around $9.87 with a P/E ratio of 10.00 and a P/S ratio of 6.10. The dividend yield for Fifth Street is 11.60%. Fifth Street Finance had an annual average earnings growth of 36.7% over the past 5 years.
MDU Resources Group Inc. (MDU)
President and CEO of MDU Resources David Goodin bought 5,000 shares for an average price of $24.40 per share. This transaction cost Goodin a total of $122,000. Since his buy, the price per share is up 0.61%. Goodin currently holds at least 42,736 shares of MDU Resources.
Goodin’s most recent buy marks the first insider buy for the company this year.
MDU Resources Group operates as a diversified natural resource company in the United States. The company generates, transmits, and distributes electricity, as well as distributes natural gas. The company is also involved in the construction and maintenance of electric and communication lines, gas pipelines, fire suppression systems, and external lighting and traffic signalization equipment.
In February 2013, MDU Resources announced a joint venture with Calumet Specialty Products Parthers (CLMT) to construct and run a diesel refinery. The refinery will be spread across 318 acres in the southwest region of North Dakota and will cost $300 million.
MDU Resources’ historical P/S and P/B ratios:
MDU Resources’ historical price, revenue and net income growth:
The Peter Lynch Valuation Chart shows that MDU appears to be overvalued:
MDU Resources Group has a market cap of $4.61 billion; its shares were traded at around $24.63 with a P/E ratio of 834.40 and a P/S ratio of 1.10. The dividend yield for the company is at 2.80%.
Truett-Hurst Inc. (THST)
President and CEO Phillip Hurst bought 54,500 shares of THST on June 20. Hurst bought these shares for the IPO pricing of the company of $6 per share. This cost the CEO a total of $327,000. Since Hurst’s buy, the price per share has dropped -0.83%.
Four other directors and 10% owners of Truett-Hurst bought into the company on June 20 during the IPO. These insiders bought a total of 116,200 shares at $6 per share.
Truett-Hurst is a super-premium and ultra-premium wine sales, marketing and production company based out of the Dry Creek and Russian River Valleys of Sonoma County, Calif. Truett is oftentimes recognized for their work in private label development as well as Truett-Hurst, VML, Bradford Mountain and Healdsburg Ranches brands.
Truett-Hurst announced the pricing of 2,700,000 shares of its Class A common stock at a price to the public of $6.00 per share. The shares were listed on the Nasdaq Capital Market on June 20 and the offering is expected to close on June 25.
Truett-Hurst’s historical revenue and net income:
There are currently no gurus that hold stake in Truett-Hurst.
- 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.