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. According to GuruFocus Insider Data these are the largest CEO buys occurring over the past week.
Globe Specialty Metals (GSM)
Over the past week Globe Specialty Metals CEO Jeff Bradley made a large buy of his company’s stock. The CEO added 20,000 shares to his holdings at $18.60 per share. This transaction cost Bradley a total of $372,000, and since his buy the price per share has dropped approximately -0.48%. The CEO now holds on to at least 40,000 shares of the company’s stock.
As seen in the chart above, this is the first insider buy reported for the company in nearly a year.
Globe Specialty Metals produces silicon metal and silicon-based alloys, important ingredients in different industrial and consumer products. The company's customers include silicone chemical, aluminum and steel manufacturers, auto companies and their suppliers, ductile iron foundries, manufacturers of photovoltaic solar cells and computer chips, and concrete producers.
Globe Specialty Metals’ historical revenue and net income:
The analysis on Globe Specialty Metals reports that the company’s revenue per share has been in decline over the past year, it has issued $65.938 million of debt over the past three years, and the company has been in operating loss over the past three years as well.
The company recently reported its third quarter fiscal 2014 results which highlighted:
- Adjusted EBITDA up 12% to $29.5 million.
- Net sales up 10% to $196.1 million.
- Adjusted EPS up 8% from last quarter to $0.14 per share.
- The company repurchased 1,050,673 shares at an average price of $18.40 per share.
Globe Specialty Metals has a market cap of $1.44 billion. Its shares are currently trading at around $19.51 with a P/E ratio of 81.50 and a P/S ratio of 2.00. The dividend yield of GSM is currently at around 1.40%.
Aegerion Pharmaceuticals (AEGR)
Over the past week Aegerion Pharmaceuticals CEO Marc Beer added 10,000 shares to his stake in the company. The CEO added these shares for $30.53 per share for a total transaction amount of $305,300. Since his buy the price per share has dropped approximately -0.59%. Beer now holds on to at least 289,462 shares of the company’s shares outstanding.
Earlier this month Director Anne Vanlent also made an insider buy of 4,000 shares. These May buys come as the company’s share price has fallen to near 52-week lows.
The buys reported in May are the first insider buys for the company since Feb. 2013.
Aegerion Pharmaceuticalsis a biopharmaceutical company. It develops into commercialization of novel, life-altering therapies for patients with debilitating, often fatal, rare diseases.
Aegerion Pharmaceuticals’ historical revenue and net income:
The analysis on Aegerion reports that the company’s inventory is building up, its price is near a 1-year low and its P/B and P/S ratios are also trading at near historical lows.
The company recently announced its first quarter 2014 results which reported:
- U.S. business growth of 24% from previous quarter.
- Net product sales guidance has increased to $27 million, up from $1.2 million.
- Net loss of $15.8 million, or $0.54 per share, down from a net loss of $18.1 million in 2013Q1
- Research and development costs jumped from $5.8 million to $7.9 million.
Over the past week President and CEO George Sakellaris made an insider buy along with a director since his company’s price has fallen to a 52-week low.
On May 20, President and CEO George Sakellaris made a notable insider buy into his company. The CEO added 25,000 shares to his stake. He bought these shares for $6.19 per share for a total transaction amount of $154,750. Since his buy the price per share has increased approximately 1.94%. Sakellaris now holds on to at least 3,695,626 shares of his company’s stock.
Earlier in the month Sakellaris purchased 10,000 shares at $5.82 per share. This cost him $58,200, and since then the price per share has increased approximately 1.94%.
Along with Sakellaris, Director Francis Wisneski added 3,500 shares to his holdings. The director bought these at $5.87 for a total transaction amount of $20,545. Since his buy the price per share has increased approximately 7.5%. Wisneski now holds on to 45,535 shares of the company’s stock.
As shown in the chart above, Sakellaris has recently increased his rate of insider buying as the company’s share price has dropped to a 52-week low.
Ameresco is a provider of energy efficiency solutions for facilities throughout North America. Its solutions enable customers to reduce their energy consumption, lower their operating and maintenance costs and realize environmental benefits.
Ameresco’s historical revenue and net income:
The analysis on Ameresco reports that the company’s revenue has been in decline over the past three years, it has issued $58.7 million of debt over the past three years and its asset growth is currently faster than its revenue growth. On the other hand, it also notes that the company’s price and P/B and P/S ratios are all near 5-year lows.
Chuck Royce and Jim Simons (Trades, Portfolio) are the only gurus that maintain a position in Ameresco. They hold a combined 2.54% of the company’s shares outstanding.
Ameresco has a market cap of $303.7 million. Its shares are currently trading at around $6.60 with a P/S ratio of 0.50 and a P/B ratio of 1.10.
You can view a complete list of CEO buys and sells here.
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