Over the past couple of days two banking companies have reported large insider buys coming from their CFOs. These buys come as the stocks hit a high in their price. The following two companies reported insider buys valued at over $100,000.
Hudson Valley Holding Corp. (HVB)
On July 30, Executive VP and CFO Michael Indiveri made a noticeable insider buy of 5,000 shares of his company’s stock. The CFO purchased 5,000 shares at $20.79 per share. This transaction cost him a total of $103,950. Since his buy, the price per share has dropped 0.34%. As of his most recent purchase, Indiveri holds on to 12,000 shares of company stock.
This buy comes as the price per share hit a 1-year high.
Hudson Valley Holding is the holding company for Hudson Valley Bank. The bank serves small- and mid-sized businesses, professional services firms, not-for-profit organizations and select individuals in metropolitan New York. The company provides a full range of banking, trust and investment management services to niche commercial customers throughout the Bronx, Brooklyn and Manhattan.
Hudson Valley’s historical price, revenue and net income:
The company recently reported its second quarter results which highlight:
· Net income of $3.5 million, or $0.18 per diluted share.
· Securities portfolio grew by $46.9 million in the second quarter.
· Loan originations and purchases totaled $112 million.
· Non-interest expense lowered by 5.7%.
The Peter Lynch Chart shows that Hudson Valley appears to be overvalued:
Hudson Valley Holding has a market cap of $414.1 million. Its shares are currently trading at around $20.72 with a P/E ratio of 27.50, a P/S ratio of 3.70 and a P/B ratio of 1.30. The company has a dividend yield of 2.30%.
Cincinnati Financial Corp. (CINF)
On July 29 Senior VP, Treasurer and CFO, Michael Sewell, bought 3,000 shares of his company’s stock as it’s trading at a 10-year high price. The CFO purchased 3,000 shares at $49.03 per share. This cost Sewell a total of $147,090. Since his most recent buy, the price per share has declined approximately -0.08%. Sewell now holds on to a total of 19,501 shares of Cincinnati Financial stock.
Cincinnati Financial offers business, home and auto insurance through The Cincinnati Insurance Company and its two standard market property casualty companies.
Cincinnati Financial’s historical price, revenue and net income:
The company’s second quarter financials reported:
· Net income of $110 million, or $0.66 per share, compared to $32 million, or $0.20 per share, in the second quarter 2012.
· Operating income of $100 million, or $0.61 per share, more than tripling the second quarter 2012 results
· $34.83 book value per share at June 30, up 4% from Dec. 2012.
The Peter Lynch Chart shows that Cincinnati Financial is currently undervalued:
Cincinnati Financial has a market cap of $8.04 billion. Its shares are currently being traded at around $48.99 with a P/E ratio of 14.20, a P/S ratio of 1.90 and a P/B ratio of 1.40. The company’s dividend yield is currently sitting at 3.30%.
- 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.