The following three companies reported the largest CEO buys in terms of transaction amount over the past week. A common idea regarding insider buying is that an insider wouldn’t spend their own money investing unless they expected the price to rise. Which leads to the importance of CEO buys. CEO insider transactions are important to note because as the leader of a company CEOs are typically thought of to have the most insight into the inner workings of a company.
Kewaunee Scientific Corp. (KEQU)
This week two insiders made buys into Kewaunee Scientific. President and CEO David Rausch made the largest buy of the week and VP of Sales and Marketing Dana Dahlgren made a smaller buy.
David Rausch added 1,000 shares to his stake on July 10. These shares traded at an average price of $12.63 per share, costing the CEO a total of $12,630. Since his most recent buy the price per share has increased approximately 1.27%. Rausch now holds on to at least 6,000 shares of company stock.
Nana Dahlgren added 520 shares to her holdings on July 10. She purchased these shares at $12.75 per share for a total transaction amount of $6,630. Since her buy, the price per share has increased about 0.31%. Dahlgren now holds on to at least 3,700 shares of Kewaunee stock.
Kewaunee Scientific is engaged in the design, manufacture, and installation of laboratory, health care and technical furniture products. Laboratory furniture products include both steel and wood cabinetry, fume hoods, adaptable modular systems, moveable workstations, environmentally friendly casework, biological safety cabinets and epoxy resin counters and sinks.
Kewaunee Scientific’s historical price, revenue and net income:
The company’s P/B ratio is at 1.02 which is close to its 52-week low of 0.95. Kewaunee has issued $5.26 million of debt over the past three years. Also, the company’s gross and operating margins have been in long term decline with average rates of decline per year of -2.9% and -13.8% respectively.
The Peter Lynch Chart shows that Kewaunee Scientific appears to be undervalued:
Kewaunee has a market cap of $33.3 million; its shares were traded at around $12.79 with a P/E ratio of 10.90 and a P/S ratio of 0.30. The dividend yield for Kewaunee stocks is at 3.10%. The company had an annual average earnings growth of 8.2% over the past ten years.
Ian Cumming was the only guru that held a position in Kewaunee, and he sold out of his holdings during the first quarter of 2013.
ERF Wireless (ERFB)
Three insiders made four buys into ERF Wireless during the past week. CEO Dr. Dean Cubley led the group by making two buys adding over 33,000 shares to his holdings.
Cubley added a total of 33,116 shares at an average price of $0.55 per share. The total transaction amount for the CEO was $17,031.92. Since his most recent buy, the price per share has dropped 24.19%. The CEO now owns at least 115,904 shares of ERF Wireless stock.
Directors Bartus Batson and Greg Smith also added to their holdings on July 12. Batson purchased 14,611 shares and Smith added 8,116 shares for a combined total of 22,727 shares at $0.62 per share. The directors spent a cumulative total of $14,091 on these transactions. Batson now owns at least 43,054 shares and Smith holds at least 77,429 shares of company stock.
As shown in the chart above, insider buying has increased as the price of ERFB stocks has hit its low.
ERF Wireless provides critical infrastructure wireless broadband communications products and services to a broad spectrum of customers in primarily rural oil and gas exploration areas of North America.
ERF Wireless’ historical price, revenue and net income:
ERF’s revenue has been in decline for the past five years. The company has also issued $8.132 million of debt in the past three years. The price of ERF Wireless is sitting at a 10-year low price of $0.47 per share.
ERF Wireless has a market cap of $4.5 million; its shares were traded at around $0.47 with a P/S ratio of 0.30.
There are no gurus that hold a position in ERF Wireless.
Two insiders made buys into Mannatech during the past week. Director Robert Toth made the largest buy and CEO and CSO Robert Sinnott made a smaller buy.
Robert Sinnott added 1,050 shares to his holdings. Sinnott purchased these shares at an average price of $11.45 per share for a total transaction amount of $12,022.50. Since his buy, the price per share has increased approximately 12.84%. The CEO now holds at least 2,375 shares of company stock.
Toth had the larger buy of the week, adding a total of 5,000 shares to his stake. The director purchased these shares at $11.80 per share for a total transaction amount of $59,000. Since his most recent buy, the price per share has jumped 9.49%. Toth currently holds on to at least 15,000 shares of Mannatech stock.
As seen in the chart above, the company has seen increased insider buying as the stock price continues to rise.
Mannatech develops and sells proprietary nutritional supplements, topical and skin care products and weight-management topics that target optimal health and wellness. The company currently sells its product in 21 countries and conducts its business as a single operating segment by selling its products through a network of independent associates and members.
Mannatech’s historical price, revenue and net income:
The company’s revenue has been in decline over the past five years. Despite the decline in revenue, the company has comfortable interest coverage, meaning that it has enough cash to cover all of its debt.
The Peter Lynch Chart shows that Mannatech appears to be overvalued:
Mannatech has a market cap of $32.2 million; its shares were traded at around $12.92 with a P/E ratio of 52.00 and a P/S ratio of 0.20.
Jim Simons currently holds 77,360 shares of Mannatech representing 2.92% of the company’s shares outstanding.
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- 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.