Over the past seven days we’ve seen several CEOs making sizeable buys as well as several coming from the companies’ CFOs. 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 two 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.
Full Circle Capital (FULL)
Over the past week both CEOs of Full Circle Capital made buys back into their company. These buys mark the first insider buys for the company in 2014.
On June 19, Chairman and Co-CEO John Stuart added 5,000 shares to his stake in Full Circle Capital. He bought these shares at the price of $7.40 per share for a total transaction amount of $37,000. Since his buy the price per share has increased an additional 6.49%. As of his most recent buy, Stuart holds on to 50,496 shares of the company’s stock.
Also on June 19, President and Co-CEO Gregg Felton added a much larger 116,352 shares to his holding in the company. He also bought these shares at $7.40 per share for a total transaction amount of $861,005. Since his buy the price per share has increased 6.49%. Fulton now holds on to 134,748 shares of the company’s stock.
Full Circle Capital was formed to continue and expand the business of Full Circle Partners LP and Full Circle Fund Ltd. The company intends to generate both current income and capital appreciation through debt and equity investments. It intends to invest primarily in asset-based senior secured loans and mezzanine loans and equity securities issued by smaller and lower middle-market companies.
Full Circle Capital’s historical revenue and net income:
The analysis on Full Circle Capital reports that the company has issued $16.652 million of debt over the past three years, its revenue per share has been in decline over the past year and its price is sitting near a 2-year low.
The Peter Lynch Chart suggests that the company is currently overvalued:
Full Circle Capital has a market cap of $79.5 million. Its shares are currently trading at around $7.88 with a P/E ratio of 54.10, a P/S ratio of 5.70 and a P/B ratio of 1.10. The dividend yield of Full Circle Capital is at 11.10%.
Hercules Offshore (HERO)
Over the past week several insiders reported sizeable buys into Hercules Offshore. These buys came from two directors and the company’s CEO and President.
On June 24, Director Thomas Bates added 20,000 shares to his holdings. The director bought these shares at $3.93 for a total transaction amount of $78,600. Since his buy the price per share is sitting at about the same price. Bates now holds on to at least 280,000 shares of the company’s stock.
Also on June 24, President and CEO John Rynd made an even larger buy of 36,000 shares of Hercules Offshore. The CEO bought these shares at $4.01 per share for a total transaction amount of $144,360. Since his buy the price per share has fallen an additional -2%. Rynd now holds on to at least 1,006,079 shares of the company’s stock.
On June 23 Director Steven Webster made the largest buy, adding 50,000 shares to his stake in Hercules Offshore. The director added these shares at $4.06 per share for a total transaction amount of $203,000. Since his buy the price per share has dropped approximately -3.2%. Webster now holds a significant 2,243,654 shares of the company’s stock.
As seen in the chart below, this is the largest report of group buying since two insiders made their buys together in February.
Hercules Offshore provides shallow-water drilling and marine services to the oil and natural gas exploration and production industry globally. It provides these services to national oil and gas companies, major integrated energy companies and independent oil and natural gas operators.
Hercules Offshore’s historical revenue and net income:
The analysis on Hercules reports that the company’s revenue per share has been in decline over the past five years and that the company’s share price is sitting at near a 1-year low.
Hercules Offshore has a market cap of $647.4 million. Its shares are currently trading at around $4.03 with a P/S ratio of 0.70 and a P/B ratio of 0.80. The company had an annual average earnings growth of 5.50% over the past five years.
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