Once again there have been some significant insider sells raking in millions of dollars for insiders. The following insider sells represent the largest sells (in terms of transaction amounts) that have been reported this week. The following three companies are all currently sitting at 5- and 10-year highs in terms of their stock prices.
Nexstar Broadcasting Group (NXST)
CEO and President of Nexstar Broadcasting Group Perry Sook sold 65,000 shares on June 25. His shares traded at an average price of $34 per share for a total selling amount of $2,210,000. This sell came as the price continues to grow past its 10-year high. The CEO still maintains 925,956 shares of company stock.
Since the beginning of the year the share price has jumped from $11.37 per share to its current price of $34 per share.
Nexstar Broadcasting Group is a diversified media company that leverages localism to bring new services and value to consumers and advertisers through its traditional media, e-MEDIA, digital and mobile media platforms. Nexstar owns, operates, programs or provides sales and other services to 72 TV stations and 17 related digital multicast signals reaching approximately 12.1% of all U.S. TV households.
The analysis on Nextar reports:
· The company has issued $283.845 million of debt in the past three years.
· The company has low interest coverage.
· The price is at a 10-year high.
· The P/S ratio is at a 10-year high of 2.56.
· The dividend yield is at a 1-year high.
Nexstar has a market cap of $982.3 million; its shares were traded at around $34 per share with a P/E ratio of 5.80 and a P/S ratio of 2.6. The company had an annual average earnings growth of 52.5% over the past five years.
The company’s first quarter financials report:
· First quarter revenue up 34.2% to a record $112.2 million
· Operating income was at $17.8 million.
· Adjusted EBITDA was at $33.1 million.
· Reported FCF of $10.2 million.
Nexstar’s historical price, revenue and net income:
The Peter Lynch Valuation Chart shows that Nextar currently appears to be undervalued:
Rockwell Collins (COL)
Chairman and CEO of Rockwell Collins, Clayton Jones, made four different insider sells on June 24. Jones sold a total of a 60,282 shares of company stock. His shares traded in the price range of $61.31 to $62.04 per share. Since his most recent sell, the price per share has increased 2.45%. The company has seen increased insider selling as the price of the company’s stock is on the rise.
Rockwell Collins designs, produces and supports solutions for customers in aerospace and defense industries. The company maintains expertise in flight-deck avionics, cabin electronics, mission communications, information management and simulation and training is strengthened by global service and support networks spanning over 27 countries.
Boeing is currently developing a new plane, the 777X, the next variant of its rather popular 777 line, and Rockwell Collins will be competing with Honeywell International (HON) in order to be in charge of the jet’s cockpit avionics.
It has also been recently announced that President Kelly Ortberg will be taking over the reigns as CEO at the end of July.
Rockwell Collins’ historical price, revenue and net income:
The analysis on Rockwell Collins reports:
· The operating margin has been in a 5-year decline.
· The price is close to a 5-year high.
· The company has issued $608 million of debt in the past three years.
· The P/S ratio is nearing a 2-year high.
Rockwell Collins has a market cap of $8.52 billion; its shares were traded at around $62.81 with a P/E ratio of 14.50 and a P/S ratio of 1.90. The dividend yield for the company is at 1.90%. The company had an annual average earnings growth of 16.2% over the past 10 years.
According to the Peter Lynch Valuation Chart, Rockwell Collins appears to be slightly undervalued:
PVH Corp. (PVH)
Both the CEO and the CFO made large insider sells on June 24.
Chairman and CEO Emanuel Chirico made the largest sell of company stock by selling a total of 47,296 shares at an average price of $119.85 per share. This raked in a total of $5,668, 426 for the CEO. He still holds on to at least 125,779 share of company stock. Since his sell, the price per share has increased an additional 3.59%.
Executive VP, CFO and COO Michael Shaffer sold a total of 19,000 shares at an average price of $120.27 per share. This brought in a total of $2,285,130 for the CFO. Since his sell, the price per share has increased approximately 3.23%. Shaffer still maintains at least 46,259 shares of company stock.
Insider selling has increased in PVH as the price is sitting near its 10-year high.
PVH is one of the largest global apparel companies. The company’s portfolio of brands includes Tommy Hilfiger and Calvin Klein as well as Heritage Brands which covers Van Heusen, IZOD and ARROW. The Company markets its brands globally at multiple price points and across multiple channels of distribution, allowing it to provide products to a broad range of consumers, while minimizing competition among its brands and reducing its reliance on any one demographic group, merchandise preference, distribution channel or geographic region.
PVH reported its first quarter results which highlighted:
· First quarter Non-GAAP EPS of $1.91.
· GAAP loss per share was $0.25 compared to the prior year’s first quarter earnings of $1.33.
· The company reiterated its Non-GAAP EPS guidance of $7.00
· Calvin Klein revenue increased to $638 million, up from $262 million in the first quarter 2012.
· Tommy Hilfiger revenue increased 5% to $811 million from $770 million in the prior year’s first quarter.
PVH’s historical price, revenue and net income:
The Peter Lynch Valuation Chart shows that the company appears to be overvalued:
The analysis on PVH reports:
· The revenue has slowed down in the past year.
· The dividend yield is at a 10-year low.
· The price is close to its 10-year high of $123.28.
· The P/S ratio is nearing its 5-year high of 1.51.
PVH has a market cap of $9.88 billion; its shares were traded at around $124.15 with a P/E ratio of 31.10 and a P/S ratio of 1.50. The company had an annual average earnings growth of 11% over the past 10 years.
- 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.