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 million dollar insider (CEO) buys over the past week.
Over the past week there were two notable insider buys coming from Fusion-io Inc. These buys came from CEO Shane Robison as well as Chief Legal Officer Shawn Lindquist.
Robison made the largest buy of the week thus far, adding 105,500 shares to his stake. He bought these shares at an average price of $9.52 per share for a total transaction amount of $1,004,360. Since his buy, the price per share has jumped up approximately 17.33%.
Lindquist made smaller, yet still noticeable buy of 11,000 shares. He bought these shares at $9.50 per share for a total transaction amount of $104,500. Since his buy the price per share has increased about 17.58%. Lindquist now holds on to at least 24,253 shares of company stock.
It is interesting to note that these two insider buys are the first two buys noted for the company and that they come as the company’s price had fallen to a 3-year low.
Fusion-io is a provider of data-centric computing solutions—a combination of hardware and software that places data closer to processing, resulting in dramatic improvements in both performance and efficiency.
Fusion-io’s historical revenue and net income:
The analysis on Fusion-io reports that the company’s revenue has been in decline over the past few years, the company holds no debt and their price is sitting near its 3-year low.
On Oct. 23, the company released its first quarter 2014 results which reported:
· Revenue of $86.3 million, down from $118.1 million last year.
· Net loss of $27.9 million, or net per diluted share of $0.28, compared to a net income of $3.9 million.
· Cash and cash equivalents of $225.3 million.
· GAAP gross margin of 57.7% and Non-GAAP gross margin of 59.4%
The company has also recently hired new members of the upper management team in order to deepen the talents and knowledge of their executive team.
Fusion-io has a market cap of $1.14 billion. Its shares are currently trading at around $11.11 with a P/S ratio of 2.50 and a P/B ratio of 2.30.
Helix Energy Solutions (HLX)
Over the past week President and CEO of Helix Energy Solutions, Owen Kratz, reported a large insider buy of 50,000 shares of his company’s stock. Kratz bought these shares at an average price of $23.05 per share for a total transaction amount of $1,152,500. Since his buy the price per share has increased approximately 5.25%. Kratz now owns over 5.2 million shares of the company’s stock.
Kratz’s transaction is the first insider buy reported for the company since Aug. 2011. He also made this buy as the company’s price sits near its 5-year high.
Helix Energy Solutions is an international offshore energy company that provides reservoir development solutions and other contracting services to the energy market as well as to its own oil and gas properties.
Helix Energy’s historical revenue and net income:
The analysis on Helix Energy reports that the company’s revenue has been in decline over the past five years, its P/S ratio is at a 1-year low and its price is sitting near a 5-year high.
The company’s third quarter results reported:
· Net income of $44.6 million, or $0.42 per share, up from $14.9 million or $0.14 per share.
· Pre-tax gain $7.0 million ($0.04 per diluted share after-tax)
· Cash and cash equivalents of $480 million and $593 million, respectively.
Also towards the end of the third quarter, Helix signed an agreement with Sembcorp Marine’s Jurong Shipyard to build the Q7000 semisubmersible well intervention vessel, a project which was announced by Helix in July.
Helix Energy Solutions has a market cap of $2.57 billion. Its shares are currently trading at around $24.26 with a P/S ratio of 2.00 and a P/B ratio of 1.80.
Over the past week Coach CEO Lew Frankfort purchased 21,000 shares of his company’s stock. The CEO purchased these shares at an average price of $48.38 per share. This cost Frankfort a total of $1,015,980. Since his buy the price per share has gone up about 4.38%. Frankfort now holds on to at least 2,053,141 shares of company stock.
Frankfort’s buy is the first insider buy for the company since Aug. 2009, and since those buys the price per share is up around 260%.
Coach is a marketer of fine accessories and gifts for women and men. Its product offerings include women's and men's bags, accessories, business cases, footwear, jewelry, sun wear, travel bags, watches and fragrance.
Coach’s historical revenue and net income:
The analysis on Coach reports that the company has shown predictable revenue and earnings growth, its dividend yield is near a 5-year high and its P/B and P/S ratios are at 3-year lows.
The company recently released its first quarter results which reported:
· The completion of the acquisition of Coach Europe Joint Venture
· Sales of $1.15 billion, compared to $1.16 billion last year.
· Net income of $218 million, or $0.77 per diluted share, compared to $218 million and $0.77 in the first quarter of 2012.
· Repurchased and retired nearly 3.3 million shares for a total of $175 million.
The company also announced in their earnings statement that they still have an additional $1.2 billion remaining under their current repurchase authorization.
The Peter Lynch Chart suggests that the company is currently overvalued:
Coach has a market cap of $14.3 billion. Its shares are currently trading at around $50.90 with a P/E ratio of 14.00, a P/S ratio of 2.90 and a P/B ratio of 5.80. The company’s dividend yield is at 2.50%. Coach had an annual average earnings growth of 18.70% over the past ten years.
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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.