Freeport-McMoRan Copper & Gold (FCX)
Over the past week and a half Freeport-McMoRan has reported four very large insider buys. These buys come as the share price has continued dwindling downward and is currently sitting slightly above its 52-week low of $27.30.
The first buy was reported on July 26. Vice Chairman of the Board James Flores purchased 517,350 shares for about $28.65 per share. This transaction cost Flores a total of $14,822,077.50. Since his buy, the share price has increased approximately 2.37%. Flores currently holds about 6.65 million shares of Freeport.
On July 30 Chairman of the Board James Moffett added 1,000,000 shares to his holdings. He purchased theses shares at an average price of $28.53 per share for a total transaction amount of $28,530,000. Since his buy the share price has increased 2.8%. Moffett currently owns at least 4.58 million shares of Freeport.
On Aug. 1 Director Bobby Lee Lackey made the smallest buy, adding 1,800 shares to his stake. The director purchased these shares at an average price of $29.09 per share for a total transaction amount of $52,362. Since his buy the price per share has increased 0.83%. Lackey now holds a total of 43,242 shares of company stock.
On Aug. 2, Director Gerald Ford purchased 1,000,000 shares at $29.18 per share. This buy cost him a massive $19,180,000. Since his most recent buy, the price per share has increased approximately 0.51%. Ford now holds on to 1,161,224 shares of company stock.
Freeport-McMoRan is a U.S.-based natural resource company with an industry leading global portfolio of mineral assets, significant oil and gas resources and a growing production profile.
Freeport-McMoRan’s historical revenue and net income:
The company’s second quarter and six-month financial results highlighted:
· Completion of its $19 billion acquisition of Plains Exploration & Production Company and McMoRan Exploration.
· Net income for of $1.1 billion, or $1.17 per share.
· Sold 951 million pounds of copper, 173 ounces of gold, 23 million pounds of molybdenum and 5.0 million barrels of oil equivalents.
· $1.0 billion in operating cash flows
· Consolidated cash equal to $3.3 billion and consolidated debt equal to $21.2 billion.
The Peter Lynch Chart shows that the company is currently undervalued:
Freeport-McMoRan Copper & Gold has a market cap of $27.44 billion. Its shares are currently trading at around $29.20 with a P/E ratio of 9.50, a P/S ratio of 1.60 and a P/B ratio of 1.50. The dividend yield for the company is currently sitting at 4.20%.
Hatteras Financial Corporation (HTS)
Over the past week, three corporate executives have reported notable insider buys as the price of Hatteras Financial sits near a 5-year low.
On July 30, President and COO Benjamin Hough purchased 12,000 shares of Hatteras at an average price of $20.35. This transaction cost the President a total of $244,200. Since his buy the share price has decreased an additional -6.19%. Hough now holds at least 206,731 shares of company stock.
Also on July 30, Director Ira Kawaller bought a much smaller 1,200 shares of Hatteras. The director purchased these shares for an average price of $20.33 per share, costing him a total of $24,396. Since this buy, the share price has dropped an additional -6%. Kawaller now owns at least 16,220 shares of Hatteras.
CEO Michael Hough made the largest buy on July 31, adding a total of 12,500 shares to his holdings. The CEO purchased these shares at an average price of $20.05, costing him a total of $250,625. Since his buy, the share price has decreased approximately -4.79%. Hough currently holds at least 229,028 shares of company stock.
These insider buys also mark the first insider transactions since Nov. 2011.
Hatteras Financial is an externally-managed mortgage REIT formed in 2007 to invest in single-family residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or U.S. Government-sponsored entities, such as Fannie Mae, Freddie Mac or Ginnie Mae.
Hatteras Financial’s historical revenue and net income:
The company’s second quarter financial overview reported:
· Earnings per share of $0.66, compared to $0.62 from last quarter.
· Declared a $0.70 per share dividend.
· Weighted average repurchase agreement rate of 0.38%.
· Quarter end book value of $22.18.
· Return on average common equity of 9.47%
The chart below shows that HTS is currently trading beneath book value:
Hatteras Financial has a market cap of $1.9 billion. Its shares are currently trading at around $19.09 with a P/E ratio of 6.10, a P/S ratio of 5.30 and a P/B ratio of 0.70. The company currently offers a 15.20% dividend yield.
First Internet Bancorp (INBK)
There have been two insider buys over the past week for First Internet Bancorp. These buys come as the share price for the company has reached an all-time high.
On July 31 CEO, President and Chairman David Becker purchased 10,015 shares of First Internet stock. Becker purchased these shares at an average price of $23.56 per share. This cost the CEO a total of $235,953.40. Since his buy, the share price has increased an additional 14.69%. Becker currently holds at least 134,024 shares of company stock.
Director Ann Murtlow made a much smaller buy, purchasing a total of 1,000 shares. She bought these shares at an average price of $24 per share for a total transaction amount of $24,000. Since her buy, the share price has increased approximately 12.58%. The director now holds on to 1,577 shares of First Internet stock.
According to the chart featured above, the company has seen increased insider buying as the share price has been on the rise.
First Internet Bancorp is the first state-chartered, FDIC-insured institution to operate solely via Internet. Deposit services include checking accounts, regular and money market savings accounts with industry-leading interest rates, CDs, and IRAs. First IB also offers consumer loans, conforming mortgages, jumbo mortgages, and home equity loans and lines of credit.
First Internet Bancorp’s historical revenue and net income:
The company reported strong second quarter financial results which highlighted:
· Net income was a record $1.71 million or $0.59 per diluted share, an increase of 34% year over year.
· Return on average assets increased to 1.07%, up from 0.83% from last year.
· Total assets were $656.77 million, compared with the second highest posted of $623.95 million in June 2012.
· Mortgage originations grew 25%
The company also declared a second quarter dividend of $0.06 per share, which is a 50% increase from the previous quarterly cash dividend.
The Peter Lynch Chart shows that First Internet Bancorp currently appears to be overvalued:
First Internet Bancorp has a market cap of $75.9 million. Its shares are currently trading at around $26.91 with a P/E ratio of 13.20, a P/S ratio of 2.80 and a P/B ratio of 1.50.
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