10-year

10-Year Anniversary Promotion (20% off)

Join GuruFocus Premium Membership Now for Only $279/Year

Once a decade discount

Save up to $500 on Global Membership.

Don't Miss It !

Free 7-day Trial
All Articles and Columns »

GuruFocus Reports Insider Buys at 52-Week Low Prices

March 21, 2014 | About:
Monica Wolfe

Monica Wolfe

133 followers

Over the past week four companies have reported multiple insider buys as their price hits or nears 52-week lows. Looking at insider buys while they’re trading at low prices can offer an excellent time to buy into a company or further your research on the company. Peter Lynch once offered that insiders will sell their shares in a company for many reasons, but they will only invest it if they think that the share price will rise.

The following four companies are trading at or within 5% of their 52-week low share price and reported insider buy(s) over the past week.

THL Credit (TCRD)

Over the past week THL Credit reported two as having made notable buys into their company as its price has dropped to a 52-week low. These buys come as the company’s price has dropped to the lowest it’s been since 2012.

Director John Sommers added 2,000 shares to his holdings on March 14. The director purchased these shares for $14.06 per share for a total transaction amount of $28,120. Since his buy the price per share has dropped -1.42%. Sommers now holds at least 40,613 shares of the company’s stock.

On March 12, Director David Downes added the most, purchasing 13,900 shares of the company’s stock. He bought these shares at $14.39 per share for a total transaction amount of $200,021. Since his buy the price per share has dropped an additional -3.68%. Downes now holds on to 24,532 shares of the company’s stock.

Director John Sommers first buy came on March 11 when he bought an initial 2,000 shares of the company’s stock. He spent $14.37 per share, costing him a total of $28,740. Since this buy the price per share has dropped an initial -3.55%.

1395438559406.png

THL Credit provides junior debt and equity to middle-market companies seeking capital for growth, acquisition, recapitalization and/or change of control. Its investment objective is to generate both current income and capital appreciation, primarily through the origination of privately negotiated investments in debt and equity securities in middle market companies.

THL Credit’s historical revenue and earnings growth:

1395438727130.png

The analysis on THL Credit reports that the company has issued $204.3 million in debt over the past three years. It also reports that the company shows strong financial strength, its dividend yield is at a 5-year high and its P/E, P/B and P/S ratios are all trading at near lever historical lows.

THL Credit has a market cap of $478.5 million. Its shares are currently 14.11 with a P/E ratio of 9.80 and a P/S ratio of 5.70. The company’s dividend yield is currently sitting at around 9.60%.

RTI International Metals (RTI)

Over the past week one insider made a significant buy as the price of RTI International Metals has dropped to its 52-week low price.

Director Ronald Gallatin purchased 5,000 shares over the past week. He bought these shares at an average price of $26.10 per share for a total transaction amount of $26.10 per share. This cost the insider a total transaction amount of $130,500. Since his buy the price per share has increased approximately 0.92%.

1395439681142.png

This is the first insider buy for the company since March 2013.

RTI International Metals is a producer and supplier of titanium mill products, and a manufacturer of fabricated titanium and specialty metal components for the international aerospace, defense, energy, medical device, and other markets.

RTI International Metal’s historical revenue and net income:

1395439788034.png

The analysis on RTI International reports that company’s revenue per share growth has slowed down over the past year, its price is at a 1-year low and its P/B and P/S ratios are also trading near historical lows.

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

1395439819008.png

RTI International Metals has a market cap of $807 million. Its shares are currently trading at around $26.32 with a P/E ratio of 32.00. a P/S ratio of 1.00 and a P/B ratio of 1.00.

Coca-Cola (KO)

Over the past week there was notable buy coming from a corporate executive at Coca-Cola. This buy comes after four insiders made buys at the end of the February.

This week the Group President James Quincey made a buy of 2,585 shares at an average price of $38.76 per share. This cost the president a total of $100,195 and since then the price per share has dropped approximately -0.68%.Quincey now holds on to at least 148,537 shares of the company’s stock.

1395419661657.png

The company has recently increased its insider buying, reporting five insider buys since the company’s price has fallen and is sitting around its 52-week low. This is the largest number of buys occurring around the same time frame since 2008. Click here for more insider information on Coca-Cola.

Coca-Cola is a beverage company. It owns or license and market more than 500 nonalcoholic beverage brands, mainly sparkling beverages but also a variety of still beverages such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks.

Coca-Cola’s historical revenue and net income:

1395421162314.png

The analysis on Coca-Cola reports that the revenue has slowed over the past year, they have issued $14.4 billion of debt over the past three years and its P/S, P/B and P/E ratios are all trading at historical lows.

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

1395428140690.png

Coca-Cola has a market cap of $169.41 billion. Its shares are currently trading at around $38.45 with a P/E ratio of 20.10, a P/S ratio of 3.70 and a P/B ratio of 5.20. The company had an annual average earnings growth of 10% over the past ten years.

GuruFocus rated Coca-Cola the business predictability rank of 5-star.

Check out more insider buys at 52-week lows by utilizing the GuruFocus All-in-One Screener.

Try a free 7-day premium membership trial here.


Rating: 5.0/5 (2 votes)

Voters:

Comments

sm2200
Sm2200 premium member - 9 months ago

This is a great article.

Please find and print more on the same theme.

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