Weekly Top American Insider Buys

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Nov 08, 2013
Over the past week there were several companies reporting insider buys along some large insider sells. The following insiders reported the largest insider buys over the past week. These transactions were judged based on the number of insiders buying, transaction amount and the amount of shares being purchased.

Digital Realty Trust (DLR)

Over the past week there were two insiders of Digital Realty Trust making notable buys back into the company. These buys come as the company’s price has dropped to a 52-week low as well as a 3-year low.

Director Laurence Chapman purchased 10,000 shares of Digital Realty stock at an average price of $47.87 per share. This cost the director a total of $478,700. Since his buy the price per share has dropped an additional -2.8%. Chapman now holds on to 69,794 shares of the company’s stock.

Senior VP and General Counsel Joshua Mills purchased a smaller 5,200 shares over the past week. He bought these shares at $48.19 per share for a total transaction amount of $250,588. Since his buy, the price per share has decreased an additional -3.44%.

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As seen in the historical insider trading chart above, the company has a strong history of insider selling. The insiders have recently increased their buying as the price of the company has drastically dropped over the past year.

Digital Realty Trust focuses on delivering customer-driven data center solutions by providing secure, reliable and cost-effective facilities that meet customer’s unique data center needs. The company’s customers come from domestic and international companies across various industries.

Digital Realty Trust’s historical revenue and net income:

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The company recently released its third quarter results which highlighted:

· Reported core FFO of $1.16 per share, up from $1.13 last year.

· Announced a $500 million share repurchase authorization.

· Closed a previously announced $369 million joint venture with Prudential Real Estate Investors.

· Signed $47 million worth of new leases over the past quarter.

The company most recently announced that the Amsterdam Internet Exchange (AMS-IX), the world’s leading internet exchange operator, along with Digital Realty would deploy AMS-IX in their data center facility in New York. This new development has been issued as a response to the endorsement process by the Open-IX community for the creation of a neutral, member-governed, and distributed internet exchange in the U.S. To read more about this business, click here.

The analysis on Digital Realty reports that the company’s revenue has slowed over the past year, its operating margin is expanding and its dividend yield is nearing a 10-year high. The analysis also notes that the company’s P/E, P/S and P/B ratios are also trading near historical lows.

There are currently six gurus that hold a position in Digital Realty Trust.

Digital Realty has a market cap of $5.94 billion. Its shares are currently trading at around $46.08 with a P/E ratio of 21.70, a P/S ratio of 4.20 and a P/B ratio of 1.60. The dividend yield of Digital Realty stocks is currently at 6.60%. The company had an annual average earnings growth of 12.20% over the past five years.

Ruby Tuesday (RT)

Over the past week the Chairman, President and CEO of Ruby Tuesday, James Buettgen, made a significant insider buy. The CEO purchased 100,000 shares of his company’s stock on Nov. 4 at a price of $5.88 per share. This cost him a total of $588,000, and since his buy the price per share has increased approximately 4.76%. Buettgen now holds over 705,000 shares of his company’s stock.

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Buettgen made this buy as the company’s share price has fallen to a 52-week low.

Ruby Tuesday Inc. owns, operates and franchises the Ruby Tuesday casual dining restaurant chain. While it is in the bar and grill sector because of its varied menu, it operates at the higher-end of casual dining in terms of the quality of its food and service.

The company reported its first quarter 2014 results at the beginning of October which reported:

· Net loss of $21.9 million, compared to net income of $3.1 million last year.

· Same-restaurant sales decreased 11.4%.

· Loss per share of $0.36, compared to the net EPS of $0.05 last year.

· Repurchased $12.9 million of their high yield bonds, and prepaid $9.9 million of their mortgage debt.

The analysis on Ruby Tuesday reports that the company’s revenue has been in decline over the past five years, that its price is nearing a 3-year low and that its P/B and P/S ratios are also nearing historical lows.

Ruby Tuesday is currently held by six gurus.

Ruby Tuesday has a market cap of $378.1 million. Its shares are currently trading at around $6.16 with a P/S ratio of 0.30 and a P/B ratio of 0.70.

Halcon Resources (HK)

Last week there were two insiders making buys back into Halcon Resources. These insiders took the opportunity to make their buys as the share price has fallen to a 52-week low.

VP of the Corporate Reserves Tina Obut added 5,000 shares to her stake last week at the price of $4.67 per share. This cost her a total of $23,350. Since she made this buy the price per share has increased approximately 0.64%. Obut now holds on to at least 179,010 shares of the company’s stock.

Executive VP and COO Charles Cusack purchase a much larger 20,000 shares on Nov. 6. The VP purchased these shares at $4.75 per share for a total transaction amount of $95,000. Since his buy the price per share has dropped an additional -1.05%. Cusack now holds on to over 475,000 shares.

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The company has seen increased insider buying as the share price has dwindled down to its 52-week low.

Halcon Resources is an energy company, which is engaged in the acquisition, production, exploration and development of onshore oil and natural gas properties in the United States.

Halcon Resources’ historical revenue and net income:

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The company’s third quarter financials reported:

· Revenues of $305 million, up 316% compared to last year.

· Production increased 237% from last year to 37,707 barrels of oil per day.

· Cash flow from operations of $179.3 million, or $0.39 per diluted share.

· Net income of $18.1 million, or $0.04 per share, compared to a net loss of $0.9 million.

The company also announced over the past quarter that it had entered into three separate purchase and sale agreements to divest some of their non-core assets for a total consideration of approximately $203 million. These transactions are set to close in the fourth quarter of 2013.

The analysis on Halcon Resources reports that the company’s revenue has been in decline over the past several years, it has issued $2.7 billion of debt over the past three years and its price is sitting near a 3-year low.

Ron Baron and Paul Tudor Jones are the only gurus that currently hold a position in HK.

Halcon Resources has a market cap of $1.95 billion. Its shares are currently trading at around $4.70 with a P/S ratio of 2.00 and a P/B ratio of 1.00.

Lehigh Gas Partners LP (LGP)

Last week there were two insiders making sizeable buys into Lehigh Gas Partners. These insiders made their buys as the price per share fell slightly from its 52-week high.

Director John Reilly purchased 2,700 shares over the past week. He paid $27.92 per share for these for a total transaction amount of $75,384. Since his buy, the price per share has dropped a slight -0.07%. Reilly now owns at least 21,272 shares of company stock.

Chairman of the Board Joseph Topper added 3,571 shares to his stake over the past week. The chairman bought these shares at an average $28 per share. This cost him a total of $99,988. Since his buy the price per share has dropped an additional -0.36%. Topper now maintains at least 18,972 shares of the company’s stock.

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Lehigh Gas Partners LP is a distributor of branded petroleum for motor vehicles in the U.S., as well as a owner and lessee of real estate used in the retail distribution of motor fuels. LGP ranks as one of ExxonMobil’s largest distributors by fuel volume in the U.S.

Lehigh Gas Partners’ historical pricing:

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The analysis on Lehigh reports that the company’s dividend yield is at a 1-year high and that its P/S ratio is nearing a 1-year low. It also reports that the company’s dividend ratio is too high, leaving the possibility that the dividend may not be sustainable.

The company’s third quarter results highlighted:

· A 5.2% increase in its cash distribution per unit.

· Adjusted EBITDA of $14.1 million, compared to $9.4 million last year.

· Generated Distributable Cash Flow of $11 million, or $0.73 per share.

· Completed two acquisitions of 50 sites in Tennessee.

As a result of its financial results, Lehigh was able to increase its quarterly dividend for the third consecutive time this quarter. The company raised the dividend 5.2% from $0.4775 per share, up to $5025 per share.

There are currently no gurus with a position in Lehigh Gas Partners.

Lehigh Gas Partners has a market cap of $430.8 million. Its shares are currently trading at around $28.66 with a P/E ratio of 46.80, a P/S ratio of 0.20 and a P/B ratio of 34.40. The dividend yield of Lehigh is currently at 4.30%.

You can view a complete list of CEO buys and sells here.

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