Over the past week, we have seen five CEOs report insider buys costing them over $100,000. These buys can be significant to note because CEOs are expected to have the most knowledge about their companies and would likely only invest their own money if they expect the share price to rise.
Royal Caribbean Cruises (RCL)
Chairman and CEO Richard Fain has made the largest insider buy this week, buying nearly one million dollars worth of shares.
Richard Fain added 26,800 shares to his stake on July 29. The insider purchased these shares at an average price of $36.82 per share. This transaction cost the CEO a total of $986,776. Since his purchase, the price per share has increased approximately 1.6%. Fain now holds on to nearly 1.5 million shares of Royal Caribbean.
Fain’s most recent insider transaction is the first insider buy since Aug. 2011.
Royal Caribbean Cruises is a global cruise vacation company that operates Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Cruises and CDF Croisieres de France. The company also offers land-tour vacations in Alaska, Asia, Australia, New Zealand, Canada, Europe and South America.
Royal Caribbean’s historical price, revenue and net income:
The company’s most recent quarterly results highlighted:
· Net income of $24.7 million, or $0.11 per share, compared to a net loss of $3.7 million in the second quarter 2012.
· Expects the full-year EPS to be in the range of $2.20 to $2.30.
· Made $1.4 million in passenger ticket revenues.
· Lost $0.05 per share as a result of the Grandeur fire.
The analysis on the company reports that the company has issued $489.992 million of debt over the past three years. It also notes that the company’s revenue has slowed down over the past year, that the price is nearing a 1-year high and that the P/S ratio is nearing a 2-year high.
Royal Caribbean has a market cap of $8.1 billion. Its shares are currently traded at around $37.41 with a P/E ratio of 108.50, a P/S ratio of 1.00 and a P/B ratio of 1.00. The company had an annual average earnings growth of 2.2% over the past ten years.
There are currently 12 gurus that hold a position in Royal Caribbean. Click here to see their holding histories.
Winmark Corporation (WINA)
Chairman and CEO John Morgan of Winmark Corporation made a notable buy on July 29. The CEO purchased 2,000 shares at approximately $68.55 per share. This transaction cost the CEO $137,100. Since his most recent buy, the price per share has increased approximately 5.56%. Morgan currently holds over 1.7 million shares of Winmark.
This insider buy comes as the share price continues to exceed past the company’s 10-year high price.
Winmark is a franchisor of five retail store concepts that buy, sell, trade and consign merchandises. The five stores include: Play It Again Sports, Once Upon a Child, Plato’s Closet, Music Go Round and Style Encore. Style Encore is Winmark’s most recent concept, and the company recently announced the signing of Style Encore’s franchise agreements.
Winmark’s historical price, revenue and net income:
The company’s second quarter results reported:
· Net income of $4,336,900, or $0.83 per diluted share, up from $3.4 million last year.
· An additional 67 retail franchises have been awarded but are not open yet.
· The company’s lease portfolio is up to $37.2 million.
· Free cash flow of $2.04 million, down from $2.23 million at the close of 2012.
The Peter Lynch Chart shows that Winmark appears to be overvalued:
Winmark has a market cap of $375 million. Its shares are currently being traded at around $72.36 with a P/E ratio of 26.20, a P/S ratio of 6.80 and a P/B ratio of 13.20. The company had an annual average earnings growth of 24.5% over the past ten years.Jim Simons is the only guru that maintains a position in Winmark. He holds 55,400 shares representing 1.11% of the company’s shares outstanding.
Phillips 66 Partners LP (PSXP)
Chairman and CEO Greg Garland made a significant buy during the company’s IPO on July 26. Garland purchased 35,000 shares at $23 per share. This transaction cost him a total of $805,000.
During the IPO, seven other insiders made buys. These insiders consisted of CFO Gregory Maxwell, President Timothy Taylor, VP of Investor Relations Craig Clayton, VP and COO J.T. Liberti, VP and Controller Charles Johnson, Director Mark Haney and Director Joseph O’Toole. These insiders bought a total of 187,500 shares at $23 per share. These buys cost the insiders a cumulative total of $4,312,500.
Phillips 66 Partners is a growth-oriented, traditional master limited partnership recently formed by Phillips 66 to own, operate, develop and acquire primarily fee-based crude oil, refined petroleums and natural gas liquids, pipelines and terminals and other transportation and midstream assets.
Since the IPO, the share price has increased by 38.09%
There are currently no gurus that hold a position in Phillips 66 Partners.
Solitario Exploration & Royalty (XPL)
Several insiders made significant buys this week as the company’s share price continues to dwindle beneath its all-time lows. Most notably, President and CEO Christopher Herald bought 400,000 shares. He purchased these shares at $0.84 per share for a total transaction amount of $336,000. Since this buy, the share price has increased approximately 11.9%.
Four other insiders made buys this week. These insiders purchased a total of 206,665 shares at $0.84 per share. These buys cost the insiders a combined total of $173,599.
These buys were as a result of a private placement of 2.45 million shares at $0.84 per share, and marked the lowest share price Solitario has seen since 2011. These buys also mark the first insider buys for the company since June 2012.
Solitario is a gold, silver, platinum-palladium and base metal exploration, development and royalty company that is actively exploring in Brazil, Mexico, Peru and Nevada.
Solitario’s historical price, revenue and net income:
The analysis on Solitario Exploration & Royalty reports:
· Revenue has been in a decline over the past year.
· The company is having difficulty collecting payments.
· The operating margin has been in a 5-year decline.
· The price is currently sitting near a 10-year low.
Solitario Exploration & Royalty has a market cap of $31.9 million. Its shares are currently being traded at around $0.94 with a P/S ratio of 107.60 and a P/B ratio of 3.80. The company had an annual average earnings growth of 2.7% over the past five years.
Guru Robert Bruce holds 254,040 shares of Solitario representing 0.73% of the company’s shares outstanding.
Alexza Pharmaceuticals (ALXA)
As Alexza Pharmaceuticals’ price has continued to stay at a 10-year low price, President and CEO Thomas King decided to increase his holdings in the company.
King purchased 40,000 shares of his company’s stock at $4.48 per share. This transaction cost the CEO a total of $179,200. Since his buy, the price per share has increased approximately 4.24%. King now holds a total of 245,823 shares of company stock.
King’s buy marks the first insider buy since Dec. 2012.
Alexza Pharmaceuticals is focused on the research, development and commercialization of novel, proprietary products for the acute treatment of central nervous system conditions, including agitation, acute repetitive seizures and insomnia.
Alexza’s historical price, revenue and net income:
The company is set to release their second quarter financial results on August 8, 2013.
The analysis on the company reports:
· The company displays signs of poor business operation.
· The revenue has been in decline over the past three years.
· The P/S ratio is near a 2-year high of 22.32.
Alexza Pharmaceuticals has a market cap of $74 million. Its shares are currently being traded at around $4.67 with a P/S ratio of 22.50.
There are currently no gurus that maintain positions in Alexza Pharmaceuticals.
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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.