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.
Opko Health (OPK)
Over the past week there were two insiders making three buys of the company’s stock. These insiders added nearly 30,000 shares to their holdings.
Chairman and CEO Dr. Phillip Frost made two buys this week, adding a total of 19,000 shares to his holdings. He bought these shares in the price range of $8.36 to $8.47 per share, spending a total of $160,380 in these transactions. Since his buys the price per share is now trading up a slight 0.305%. Frost now maintains over 17.4 million shares of the company’s stock.
Also on Jan. 7, Director John Paganelli added 10,000 shares to his holdings. He bought these for $8.45 per share for a total transaction amount of $84,500. Since his buy the price per share has dropped a slight -0.12%. Paganelli now holds on to at least 225,399 shares of the company’s stock.
CEO Phillip Frost is consistently making buys back into his company. Frost is also the largest individual shareholder of the company’s stock.
Opko Health is a biopharmaceutical and diagnostics company, which is focused on the discovery, development, and commercialization of proprietary pharmaceuticals, diagnostic and imaging systems and instrumentation products for the treatment, diagnosis and management of ophthalmic diseases and conditions.
Opko Health’s historical revenue and net income:
The analysis on Opko reports that the company had operating loss over the past three years, it has issued $171.572 million of debt over the past three years and the company’s short interest is high, 26.07% of the float is shorted.
The company recently announced that they had successfully exited their investment in Sorrento Therapeutics. The company sold their stake in Sorrento, adding nearly $22 million to OPKO’s cash position and representing a near ten-fold return on their original investment made in 2009.
Opko Health has a market cap of $3.42 billion. Its shares are currently trading at around $8.48 with a P/S ratio of 29.70 and a P/B ratio of 3.90.
Oiltanking Partners (OILT)
Over the past week there were two insiders making notable buys into Oiltanking Partners. These buys come as the company’s price continues to exceed its previous highs.
President and CEO Anne-Marie Ainsworth made the largest buy, adding 1,000 shares to her stake. She bought these shares at an average price of $62.37 for a total transaction amount of $62,370. The price is trading down -0.99% at $62.02 this morning. Since her most recent buy, Ainsworth now holds on to 13,000 shares of company stock.
Director David Griffis also made a buy this week adding a small 81 shares to his holdings. The guru bought these at $61.90 per share spending a much smaller total of $5,014. Since his buy the price per share is down about -0.24%. The guru holds on to a total of 9,210 shares of the company’s stock.
As shown in the chart above, Oiltanking Partners has a strong history of insider buying, with a consistent rate of insider buying still occurring despite the fact that the company is trading at a historical high.
Oiltanking Partners is a company that is engaged in independent storage and transportation of crude oil, refined petroleum products and liquefied petroleum gas. Its terminal assets are located along the upper Gulf Coast in the U.S.
Oiltanking Partners’ historical revenue and net income:
The analysis on the company reports that their revenue has been in decline over the past three years, its price is at a 3-year high and its dividend yield is at a 1-year low.
The company announced this week an expanded LPG terminal agreement with Enterprise. This extension will be utilized to further increase exports of liquefied petroleum gas at the partnership’s terminal on the Houston Ship Channel. You can read more about this extension here.
The Peter Lynch Chart suggests that the company is currently undervalued:
Oiltanking Partners has a market cap of $2.42 billion. Its shares are currently trading at around $62.01 with a P/E ratio of 10.80, a P/S ratio of 6.50 and a P/B ratio of 7.50. The dividend yield of Oiltanking Partners is 2.70%.
Jim Simons is the only guru that maintains a position in OILT.
Sara Creek Gold Corp (SCGC)
There was one gold company marking notable insider buys over the past week. While the stock is currently trading at a $0.32 per share, last week CEO Darren Katic added 1.5 million shares to his stake at $0.10 per share. The transaction cost him a total of $150,000. Katic’s buy also represents the first insider trading activity for the company.
Sara Creek Gold is a development stage company. The company intends to target the exploration and acquisition of mining concessions that allow for economically viable development and production with minimal net environmental impact.
Sara Creek Gold’s historical revenue and net income:
The analysis on Sara Creek reports that the company has issued $950,000 in the past year, its days sales outstanding has been building up, meaning the company might be having trouble collecting payment from its customers and that the company’s price is sitting at a 2-year high.
Sara Creek has a market cap of $8.3 million. Its shares are currently trading at around $0.32 with a P/S ratio of 909.10.
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.