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Insider Buys Reported at 52-Week Lows

August 13, 2013 | About:
Monica Wolfe

Monica Wolfe

131 followers
Over the past couple of weeks three companies have reported insider buys coming as their share prices hit or neared their 52-week lows. These buys are important to note because they can help you find undervalued, smaller-capped stocks that are oftentimes overlooked by Wall Street. The following three companies represent the insider buys at 52-week lows with the highest total transaction amounts.

Acorn Energy (ACFN)

Over the past week, two insiders have made notable buys as Acorn Energy’s price has nearly dropped to its 52-week low.

President and CEO John Moore made the largest buy on Aug. 9, adding 10,000 shares to his stake. The CEO purchased these shares at an average price of $6.99 per share. This buy cost the CEO a total of $69,900. Since his buy, the price per share has dropped an additional -7.58%. Moore currently holds 904,778 shares of Acorn Energy.

Director Christopher Clouser also made a significant buy, adding 7,200 shares to his position in the company. Clouser purchased these shares at a smaller price of $6.95 per share. This cost the director a total of $50,040. Since his buy, the price per share has decreased approximately -7.05%. Clouser currently holds at least 42,500 shares of company stock.

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Today Acorn Energy is sitting at its 52-week low price of $6.46 per share.

Acorn Energy is a holding company whose four portfolio companies help their customers achieve greater productivity, reliability, security and efficiency. The company’s four subsidiaries consist of GridSense, OMNIMETRIX, US Seismic and DSIT.

Acorn Energy’s historical revenue and net income:

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The company’s second quarter financials reported:

· Revenues of $5.2 million compared to $5.7 million in the second quarter 2012.

· Net loss was $7.2 million versus $3.2 million last year.

· Net loss per share was $0.40 versus a net loss of $0.18 per share in 2012.

· The company also reported an intangible asset impairment charge of approximately $1.7 million.

The company announced on July 31 that Joe Musanti would be named the President and CEO of a new Acorn division which brings together OMNIMETRIX and GridSense. The two subsidiaries will now work as a single operating division, but the companies will continue to report operating results in their own respective segments.

Acorn Energy has a market cap of $116.5 million. Its shares are trading at around $6.46 with a P/S ratio of 5.70 and a P/B ratio of 3.10. The company had an annual average earnings growth of 7.1% over the past ten years.

Hatteras Financial Corp. (HTS)

Over the past couple of weeks three insiders have made buys into Hatteras Financial. These buys have come as the company’s price had dropped past its 52-week low and all the way to a five-year low.

On July 31 CEO Michael Hough made the largest buy, adding 12,500 shares to his stake. The CEO purchased these shares at an average price of $20.05 per share. This cost him a total of $250,625. Since his buy, the price per share has dropped an additional -5.29%. Hough now holds on to at least 229,028 shares of Hatteras Financial.

On July 30, Director Ira Kwaller bought 1,200 shares at an average price of $20.33 per share. This insider buy cost the director a total of $24,396. Since his buy, the price per share has decreased an additional -6.59%. Kwaller now holds on to at least 16,220 shares of company stock.

Also on July 30, President and COO Benjamin Hough bought a total of 12,000 shares. The President bought these shares at a price of $20.35, costing him a total of $244,200. Since his buy the price per share has dropped -6.68%. B. Hough now holds on to 206,731 shares of company stock.

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These insider buys also mark the first insider transactions since November 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:

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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:

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Hatteras Financial has a market cap of $1.88 billion. Its shares are currently trading at around $18.99 with a P/E ratio of 6.00, a P/S ratio of 3.50 and a P/B ratio of 0.70. The dividend yield of Hatteras Financial stocks is 15.30%.

Swift Energy (SFY)

During the past week CEO and Chairman of Swift Energy Company, Terry Swift, reported the first insider transaction reported in the company since February.

On Aug. 5 Swift added 20,000 shares to his stake in the company. The CEO purchased these shares at an average price of $11.85 per share, costing him a total of $237,000. Since his buy, the price per share has increased a minor 0.34%. Swift currently holds the most shares of any insider with a total of 408,655 shares of company stock.

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Swift’s buy comes as the price has hit a three-year low.

Swift Energy Company is an independent U.S.-based oil and natural gas company with three core areas of operation in Louisiana and Texas.

Swift Energy’s historical revenue and net income:

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The company’s second quarter financials reported:

· Earnings of $6.7 million, or $0.15 per diluted share, up 122% from the second quarter financials.

· Adjusted cash flow of $72.8 million, or $1.67 per diluted share, compared to $72.7 million, or $1.69 per diluted share in 2012.

· Produced 2.78 million barrels of oil equivalent, a 5% decrease from second quarter 2012 production.

· Total revenues increased 6% to $142.5 million.

The Peter Lynch Chart shows that Swift Energy currently appears to be overvalued:

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Swift Energy has a market cap of $516.7 million. Its shares are currently trading at around $11.91 with a P/E ratio of 18.20, a P/S ratio of 0.90 and a P/B ratio of 0.50.

You can view all insider trades of companies at 52-week lows by using our all-in-one screener. To view all insider buys and sells this past week, click here.

Rating: 4.0/5 (1 vote)

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