Over the past seven days we’ve seen several large insider buys as well as several coming from the companies’ CEOs. It is interesting to note when a CEO, or even a CFO, buys because these insiders supposedly have the most intimate knowledge of their company's workings.
The following three CEOs each come from various sectors of the market, but they each reported insider buys with transaction amounts valued at over $100,000.
Comtech Telecommunications Corporation (CMTL)
Over the past week Chairman, CEO and President Fred Kornberg made a fairly costly buy back into his own company. The CEO purchased a total of 7,958 shares at an average price of $27.44 per share. This transaction cost Kornberg a total of $218,368. Since his buy, the price per share has increased approximately 6.09%.
Kornberg’s buy is the first reported insider transaction since Dec. 2012 and the first insider buy since Oct. 2011.
Comtech Telecommunications designs, develops, produces and markets innovative products, systems and services for advanced communications solutions. The company conducts its business through three complementary operating segments: telecommunications transmission, RF microwave amplifiers and mobile data communications.
Comtech’s historical revenue and net income:
On Oct. 3, the company declared a quarterly cash dividend of $0.275 per share. This share is payable on Nov. 19 to shareholders of the record at the close of business Oct. 18. The Board projects that their annual dividend payments will be an aggregated $1.10 per share.
Also on Oct. 3, Comtech reported its fiscal 2013 fourth quarter and full year results which reported:
· Net sales for the quarter and year of $84.4 million and $319.8 million, compared to $112.8 million and $425.1 million in 2012.
· GAAP diluted EPS of $0.28 and $0.97, compared to $0.38 and $1.42 in 2012.
· Backlog was $189.7 million compared to $153.9 million last year.
· Financial guidance for 2014 sales projected to be between $320 million and $340 million.
The Peter Lynch Chart suggests that the company is currently overvalued:
Comtech Telecommunications has a market cap of $479.8 million. Its shares are currently trading at around $29.11 with a P/E ratio of 32.40, a P/S ratio of 2.00 and a P/B ratio of 1.10. Comtech currently holds a 3.80% dividend yield. The company had an annual average earnings growth of 4.10% over the past ten years.
Griffin Land & Nurseries (GRIF)
Over the past week Griffin Land & Nurseries reported two sizable insider buys.
CEO Frederick Danziger added 35,000 shares to his stake at an average cost of $31.91 per share. This cost the CEO a total of $1,116,850. Since his buy the price per share has increased approximately 2.38%. Danziger now holds on to over 430,000 shares of company stock.
10% Owner Lucy Danziger also bought 35,000 shares, but she purchased her at an average price of $30.91 per share. This transaction cost a total of $1,081,850. Since her buy the price per share has increased 5.69%. Lucy Danziger now holds on to at least 558,000 shares of company stock.
These insider buys are the first reported insider transactions for the company since Nov. 2012.
Griffin Land and Nurseries is engaged in two lines of business: the real estate business and the landscape nursery products business. Griffin Land is an owner operator that provides development, marketing, construction, management and maintenance of its portfolio.
Griffin Land & Nurseries’ historical revenue and net income:
Griffin Land & Nurseries,announced last week that a subsidiary of its real estate business, Griffin Land, entered into a Real Estate Sales Contract for the sale of approximately 90 acres of undeveloped land for approximately $9 million in cash.
Griffin Land & Nurseries has a market cap of $167.8 million. Its shares are currently trading at around $32.38 with a P/S ratio of 4.70 and a P/B ratio of 1.60.
Ryman Hospitality Properties (RHP)
Over the past week President, Chairman and CEO of Ryman Hospitality Properties, Colin Reed, made a notable insider buy. The CEO added 6,682 shares to his stake at an average price of $34.79 per share. This transaction cost him a total of $323,467. Since his buy, the price per share has increased an additional 6.01%. Reed now holds on to a total of 937,289 shares of company stock.
Insider buying in Ryman Hospitality has significantly increased since June 2013, as the company’s price has fallen from its all time high.
Ryman Hospitality operates as a REIT specializing in group-oriented, destination hotel assets in urban and resort markets. It owns assets including a network of four upscale, meetings-focused resorts which are managed by Marriott International and under the Gaylord Hotels brand.
Ryman Hospitality’s historical revenue and net income:
The company is releasing its third quarter financials on Nov. 5 at 12:00 PM ET.
Ryman has also announced that it will be participating in a panel discussion on lodging and resorts during the REITWorld 2013 Confrence on Nov. 14.
Ryman Hospitality has a market cap of $1.86 billion. Its shares are currently trading at around $36.88 with a P/E ratio of 384.20, a P/S ratio of 1.90 and a P/B ratio of 2.30.
You can view a complete list of CEO buys and sells here.
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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.