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 company leaders 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.
Core Laboratories (CLB)
Over the past week Core Laboratories’ Executive VP and CFO Richard Bergmark made a sizeable buy into his company. The insider made this buy as the company’s price has recently fallen from a historical high.
Bergmark added 7,000 shares to his holdings on July 28. The CFO added these shares at $147.31 per share for a total transaction amount of $1,031,170. Since his buy the price per share has dropped approximately -0.18%. The CEO now holds on to 69,802 shares of the company’s stock.
This buy marks the first insider transaction in the company since March and the first insider buy since Feb. 2014.
The last time the CFO made a move in his company’s stock was in Aug. 2013 when he sold 20,000 shares. Since that sell the price per share has dropped -1.69%.
Core Laboratories is engaged in providing proprietary and patented reservoir description, production enhancement and reservoir management services to the oil and gas industry. It provides services and design and products which enable its clients to evaluate reservoir performance and increase oil and gas recovery from new and existing fields.
Core Laboratories’ historical revenue and net income:
The analysis on Core Laboratories reports that the Piotroski F-Score is high, it has shown predictable revenue and earnings growth, and its operating margin is expanding. The analysis also notes that the company’s dividend yield is near a 10-yearh high, it has a poor stock buyback record and the company has issued $157.038 million of debt over the past three years.
The Peter Lynch Chart suggests that the company is currently overvalued:
There are currently eight gurus that hold a position in Core Laboratories. Check out their holding histories here.
Core Laboratories has a market cap of $6.67 billion. Its shares are currently trading at around $150.12 with a P/E ratio of 27.80, a P/S ratio of 6.30 and a P/B ratio of 39.50. The company has a dividend yield of 1.10% and has seen an annual average earnings growth of 22.50% over the past ten years.
GuruFocus rated Core Laboratories the business predictability rank of 3-star.
Financial Institutions (FISI)
Also over the past week Financial Institutions reported two insider buys. These buys came from President and CEO Martin Birmingham and Senior VP Paula Dolan.
Senior VP Paula Dolan added 2,000 shares to her holdings on July 28. She bought these shares at about $22.48 per share for a total transaction amount of $44,960. Since her buy the price per share has increased approximately 1.11%. The Senior VP now holds on to at least 3,002 shares of the company’s stock.
President and CEO Martin Birmingham added a larger 5,000 shares to his holdings on July 28. The CEO bought these shares at $22.51 per share for a total transaction amount of $112,550. Since his buy the price per share has increased approximately 0.98%. Birmingham now holds on to 45,057 shares of the company’s stock.
As shown in the chart above these buys are the first insider buys for the company since February of this year.
Financial Institutions, through its subsidiaries, including its wholly-owned, New York State chartered banking subsidiary, Five Star Bank, Financial Institutions, Inc. provides deposit, lending and other financial services to individuals and businesses in Central and Western New York State.
Financial Institutions’ historical revenue and net income:
The analysis on Financial Institutions reports that the company’s revenue per share has been in decline over the past year, its dividend yield is near a 3-year high and it has issued $127.984 million of debt over the past three years.
The Peter Lynch Chart suggests that the company is currently undervalued:
Financial Institutions has a market cap of $320.2 million. Its shares are currently trading at around $23.11 with a P/E ratio of 12.70, a P/S ratio of 2.70 and a P/B ratio of 1.30. The company’s dividend yield is at 3.30% and it had an annual average earnings growth of 4.70% over the past five years.
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