GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Three Largest CEO Transactions of the Week

December 19, 2013 | About:
Monica Wolfe

Monica Wolfe

133 followers

Over the past week 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 and one CEO reported an insider sell raking in over.

Kinder Morgan (KMI)

Over the past week Chairman and CEO Richard Kinder of Kinder Morgan made a significant increase to his holdings in the company. The CEO bought 828,324 shares of the company’s stock at an average cost of $33.37 per share. Since his buy the price per share has jumped back up approximately 2.91%. Richard Kinder now holds on to over 242.7 million shares of Kinder Morgan stock.

Insider buying has increased for the company since the price has dwindled down from its previous 10-year highs.

1387490485056.png

Earlier this year VP of HR and Administration James Street made several buys as did Director Fayez Sarofim. To read more about their buys, check out Kinder Morgan’s Insider Trades’ page.

Kinder Morgan is engaged as the energy transportation and storage companies in North America. Kinder Morgan is the largest midstream and the third largest energy company (based on combined enterprise value) in North America.

Kinder Morgan’s historical revenue and net income:

1387490690562.png

The analysis on Kinder Morgan reports that the revenue has been in decline over the past three years, it has issued $4.8 billion in debt over the past three years and the dividend yield is nearing a three-year high.

The company recently announced that its collaborative project with Valero Energy (VLO) is now fully operational and is transporting petroleum products from refineries in Louisiana to Mississippi.

The company recently announced its financial expectations for 2014 which reports the company’s expectations to:

  • Generate approximately $6.4 billion in business segment earnings before DDA, an increase of about $750 million over the 2013 forecast.
  • Distribute over $2.5 billion to its limited partners.
  • Invest approximately $3.6 billion in expansions and small acquisitions.
  • Almost $720 million of the equity required for the investment program is expected to be funded by KMR share dividends.

Kinder Morgan has a market cap of $36 billion. Its shares are currently trading at around $34.75 with a P/E ratio of 38.80, a P/S ratio of 3.80 and a P/B ratio of 2.60. The dividend yield of Kinder Morgan stock is 4.40%.

Calamos Asset Management (CLMS)

Over the past week Chairman, CEO and Global Co-CIO John Calamos Sr. made three different insider buys making a notable increase to his portfolio. In all three buys, Calamos added a total of 37,378 each time for a total addition of 112,134 shares to his stake. He bought these shares in the price range of $10.93 to $11.09 per share for a total transaction amount of $1,233,474. Since his buys, the price per share has increased a slight 0.18%.

1387491341674.png

Insider buying for the company’s executives has become increasingly more common as the price per share has been hovering near its 52-week low.

Calamos Asset Management is a global asset management firm that offers strategies to fulfill a range of asset allocation goals through a multi-team platform. The company together with its subsidiaries provides investment advisory services to various individuals, corporations and partnerships.

Calamos Asset’s historical revenue and net income:

1387491593290.png

The analysis on Calamos reports that the company’s operating margin is expanding, its dividend payout ratio is too high and its Altman Z-Score indicates that the company is currently under some sort of financial stress.

The company’s third quarter financials reported:

  • Non-GAAP diluted EPS of $0.20, down from $0.22 last year.
  • Non-GAAP net income of $4.1 million, compared to $4.5 million last year.
  • Revenues of $65 million, down from $66.7 million.
  • Total assets of $27.5 billion, up from $26.6 billion last year.

The Peter Lynch Chart suggests that the company is currently overvalued:

1387491550442.png

Calamos Asset Management has a market cap of $227 million. Its shares are currently trading at around $11.06 with a P/E ratio of 18.50, a P/S ratio of 0.80 and a P/B ratio of 1.10. The dividend yield of Calamos Asset Management stocks is 4.50%.

Brunswick Corporation (BC)

Over the past week Chairman and CEO Dustan McCoy made a very large cut of his holdings in the company. On Dec. 17, he sold 756,943 shares of the company’s stock at the price of $45.73 per share. This raked in a massive $34,615,003 for the CEO. Since his sell the price per share has dropped -0.85%. As of his most recent sell McCoy holds on to 415,187 shares of the company’s stock.

1387493204255.png

As shown in the chart above, as Brunswick’s price has exceedingly increased the volume of insiders selling has increased as well.

Brunswick Corporation is a global manufacturer and marketer of boats. Their portfolio includes various boats as well as marine parts and accessories including motors, propellers, positioning systems and navigations systems. Along with boating equipment, the company also owns and operates Brunswick bowling centers in the U.S. and internationally.

Brunswick’s historical revenue and net income:

1387493630496.png

The analysis on Brunswick reports that the company’s revenue has been in decline over the past five years, its price is at a 10-year high and its Piotroski F-Score is high, indicating a healthy situation.

The Peter Lynch Chart suggests that the company is currently overvalued:

1387493685046.png

Brunswick Corporation has a market cap of $4.12 billion. Its shares are currently trading at around $45.34 with a P/E ratio of 39.00, a P/S ratio of 1.10 and a P/B ratio of 14.30.

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

  • 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.

» Take a Free Trial of Premium Membership


Rating: 3.8/5 (5 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK