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.
Akamai Technologies (AKAM)
Over the past week, CEO Thomson Leighton made the first insider buy in to Akamai Technologies since March 2013. The CEO added 25,000 shares to his stake at a price of $45.28 per share. This transaction cost Leighton a total of $1,132,000. Since his buy the price per share has dropped approximately -2.52%. Leighton now holds on to at least 393,457 shares of the company’s stock.
Akamai’s insiders have a stronger history of selling rather than buying. The CEO’s buy comes as the price has evened out from its fall from a near-record high.
Akamai Technologies provides services for accelerating and improving the delivery of content and applications over the Internet. Its solutions are designed to help businesses, government agencies and other enterprises enhance their revenue streams and reduce costs by maximizing the performance of their online businesses.
Akamai’s historical revenue and net income:
Leighton’s buy also comes after the company’s announcement that they would be acquiring Prolex, a provider of cloud-based security solutions. Under the terms of this agreement, Akamai will acquire all of the outstanding equity of Prolex in exchange for approximately $370 million.
The analysis on Akamai reports that the company’s gross margin has been in a long term decline. It also notes that the company currently holds no debt.
The Peter Lynch Chart reports that the company is currently overvalued:
Akamai Technologies has a market cap of $7.9 billion. Its shares are currently trading at around #44.14 with a P/E ratio of 28.50, a P/S ratio of 5.30 and a P/B ratio of 3.10. The company had an annual average earnings growth of 27.10% over the past ten years.
Halcon Resources (HK)
Over the past week there were six insiders making buys into Halcon Resources. These insiders consist of Chairman and CEO Floyd Wilson, VP of Investor Relations Scott Zuehlke, Executive VP and COO Charles Cusack, Executive VP and CFO Mark Mize, Executive VP and General Counsel David Elkouri and Director Tucker Bridwell. These executives make their buys in the share price range of $3.72 to $4.00 per share.
Most notably came the buys from the company’s top two executives: Floyd Wilson and Mark Mize.
CEO Wilson added 100,000 shares to his stake this past week at an average price of $4.00 per share. The transaction cost him $400,000, and since his buy the price per share has increased 1.75%. The CEO now holds on to over 3.76 million shares of company stock.
Also CFO Mize added 50,000 shares at $4.00 per share. This transaction cost him a total of $200,000 per share. Since his buy the price per share is up about 1.75%. The CFO now holds on to at least 597,757 shares of the company’s stock.
The company has seen increased insider buying as the share price has dwindled downward towards a 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:
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, Louis Moore Bacon and Steven Cohen are the only gurus that currently hold a position in HK. Ron Baron holds the largest position with 2,814,722 shares of the company’s stock, representing 0.69% of the company’s shares outstanding.
Halcon Resources has a market cap of $1.69 billion. Its shares are currently trading at around $4.07 with a P/S ratio of 1.70 and a P/B ratio of 1.00.
Calamos Asset Management (CLMS)
Over the past week Chairman, CEO and Global Co-CIO Joh Calamos Sr. made a significant buy of his company’s stock. The CEO added 31,496 shares to his holdings at an average price of $10.81 per share. This cost him a total of $340,472. Since his buy the price per share has increased a slight 1.02%. . Calamos now owns a total of 1,557,419 shares of the company’s stock.
Calamos is a global asset management firm that offers strategies to fulfill a range of asset allocation goals through a multi-team platform. The company provides investment advisory services to individuals and institutional investors through open-end funds, closed-end funds, separate accounts, offshore funds and partnerships.
Calamos Asset Management’s historical revenue and earnings growth:
The analysis on Calamos Asset Management reports that the company’s operating margin is expanding, its dividend yield is close to a 3-year high and its revenue has been in decline over the past year.
Mario Gabelli and Jim Simons both hold a stake in Calamos Asset Management. Gabelli holds the larger stake with 126,000 shares of the company’s stock, representing 0.61% of its shares outstanding.
The company’s third quarter results highlight:
- Non-GAAP diluted EPS of $0.20, down from $0.22 per share in the previous quarter.
- Net income of $4.1 million, down from $4.5 million last quarter.
- Revenues at $65.0 million, compared to $66.7 million in the second quarter.
- Assets were $27.5 billion this quarter, up from $26.6 billion last quarter.
The Peter Lynch Chart suggests that the company is currently overvalued:
Calamos Asset Management has a market cap of $223.6 million. Its shares are currently trading at around $10.89 with a P/E ratio of 18.20, a P/S ratio of 0.80 and a P/B ratio of 1.10. The dividend yield of Calamos is currently at 4.50%.
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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.