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Weekly Top Insider Buys: Masco Corp., Aquila Inc., Wells Fargo & Company, Denbury Resources Inc., Allied Capital Corp.

June 14, 2008 | About:

Weekly highlight of top insider buys. Related companies: Masco Corp. (MAS), Aquila Inc. (ILA), Wells Fargo & Company (WFC), Denbury Resources Inc. (DNR), Allied Capital Corp. (ALD).

Masco Corp. (MAS): Executive Chairman, Director Richard A. Manoogian Bought 200,000 Shares

Home improvement and building products manufacturer Masco Corporation (MAS) recently laid-off 400 employees at two of their Cleveland, Ohio plants. The cabinet maker sold their European Heating group for $155 million to Vaessen Industries in April. Masco’s quarterly earnings narrowed to $2 million or $0.01 a share from $153 million or $0.37 a share in 2007, as new home construction and home improvement sales slacked. The company’s total revenue tumbled 13% to $2.4 billion. Company shares are currently near the 52-week low. Masco set their quarterly dividend at $0.23 per share.

Charles Brandes bought 9,290,783 shares, as Bill Nygren sold out all his MAS holdings, in the quarter ended on 3/31/08. Few other gurus kept their shares unchanged: Arnold Van Den Berg, David Dreman, Brian Rogers, Tweedy Browne, Chris Davis, and Dodge & Cox.

Executive Chairman, Director Richard A. Manoogian bought 200,000 shares on 6/6/08 at $17.45 and bought 300,000 shares on 5/23/08 at $17.91. President & CEO, Director Timothy Wadhams bought 100,000 shares on 3/17/08 at $17.98. Also, CFO & VP John G. Sznewajs bought 2,500 shares on 6/11/08 at $17.30.

Masco Corp. has a market cap of $6.42 billion; its shares were traded at around $17.74 with a P/E ratio of 26.44 and P/S ratio of 0.54. The dividend yield of Masco Corp. stocks is 5.4%.

Aquila Inc. (ILA): Director Nicholas J. Singer Bought 1,240,200 Shares

Aquila, Inc. (ILA) operates as an integrated electric and natural gas utility company which generates, transmits, and distributes electricity to 400,804 customers in Colorado and Missouri. For the first quarter, the company made a profit of $8.5 million or $0.02 a share, on an 8.7% revenue increase to $483.1 million. In 2007, the company lost $24.3 million or $0.06 a share in the same quarter. Last year, Great Plains Energy has agreed to buy up $1.7 billion of Aquila’s stock and pay off $1 billion of Aquila’s debt. Once the sale is complete this year, Aquila’s capacity to borrow will decrease to $65 million from $150 million.

Director Nicholas J. Singer bought 1,240,200 shares on 6/4/08 at $3.80. In March, Director Singer bought a total of 13,556,300 shares between $3.28 and $3.35 per share.

Aquila Inc. has a market cap of $1.43 billion; its shares were traded at around $3.77 with a P/E ratio of 51.92 and P/S ratio of 0.94.

Wells Fargo & Company (WFC): Chairman, Director Richard M. Kovacevich Bought 40,398 Shares

Financial Bank Wells Fargo & Company (WFC)’s quarterly earnings are down 11%, despite 12% increase in revenue. The company earned $2 billion or $0.60 a share for the quarter compared to $2.2 billion or $0.66 a share a year ago. Revenue totaled $10.6 billion for first quarter of 2008. This month, national mortgage applications rose 10.9%, even though interest rates have been its highest in 8 months. Wells Fargo sets higher requirements for their new mortgage applicants—especially loans that are 95% or more of the house value. The company sets their quarterly dividend at $0.31 per share.

George Soros, Richard Snow, Brian Rogers, Dodge & Cox, and Ron Baron bought shares of WFC in the prior quarter; on the other hand, Wallace Weitz and Ken Heebner reduced their holdings of WFC. Other gurus kept their WFC shares slight adjusted: Warren Buffett, Chris Davis, David Dreman, Kenneth Fisher, Ruane Cunniff, Tweedy Browne, NWQ Managers, Chuck Akre, and Arnold Van Den Berg.

Chairman, Director Richard M. Kovacevich bought 40,398 shares on 6/6/08 at $26.05; and President & CEO, Director John G. Stumpf bought 1,550 shares on 5/15/08 at $28.93.

Wells Fargo & Company has a market cap of $85.57 billion; its shares were traded at around $25.27 with a P/E ratio of 11.14 and P/S ratio of 2.44. The dividend yield of Wells Fargo & Company stocks is 4.9%.

Denbury Resources Inc. (DNR): Director Wieland Wettstein Bought 16,600 Shares

Denbury Resources Inc. (DNR) more than tripled their earnings to $73 million or $0.29 a share for the first quarter, on rising oil prices and 17% higher production. A year ago, the company earned $16.6 million or $0.07 a share. Revenue surged 82% to $317.3 million from $174.2 million.

Jean-Marie Eveillard and T. Boone Pickens kept their shares of DNR about the same; NWQ Managers reduced their holdings in DNR by 24%.

Director Wieland Wettstein bought 16,600 shares on 6/6/08 at $35.98, and Director Michael B. Decker bought 400 shares on 3/3/08 at $31.98.

Insiders made large sells between $29.21 and $36.40: President & CEO Gareth Roberts sold 100,000 shares; SVP Ronald Tracy Evans sold 30,000 shares; VP Harold Raymond Dubuisson sold 33,776 shares; VPs Mark C. Allen and Phil Rykhoek sold 17,364 shares, and 17,308 shares, respectively; VP Charles Gibson sold 10,000 shares; VP Barry Schneider sold 8,952 shares; and Director David I Heather sold 2,000 shares.

Denbury Resources Inc. has a market cap of $8.44 billion; its shares were traded at around $34.33 with a P/E ratio of 28.07 and P/S ratio of 7.98.

Allied Capital Corp. (ALD): Managing Director John Martin Fruehwirth Bought 20,000 Shares

Allied Capital Corporation (ALD) is a private equity firm specializing in buyouts, acquisitions, recapitalizations, note purchases, growth capital, and middle market equity and debt investments. The company lost $40.7 million or $0.25 a share for the first quarter, on $113.4 million losses from bad investments. In comparison to the prior year’s first quarter, Allied Capital earned $133.1 million or $0.87 a share. In order to raise capital, Allied Capital will offer 9 million shares for $175 million as common stock offering. Company shares have been near their 52-week lows.

Mark Hillman and Tom Gayner own shares of ALD, while John Keeley sold out all his ALD holdings.

Managing Director John Martin Fruehwirth bought 20,000 shares of ALD stock on 6/6/08 at $18.72. As of December, other officers bought up stock between $18.85 and $22.21: EVP Diane Elizabeth Murphy bought 17,292 shares; Chairman & CEO, Director William L. Walton bought 3,800 shares; Managing Director Justin S. Maccarone Jr. bought 3,900 shares; Director Edwin Harper bought 3,500 shares; and Director Bates Ann Torre bought 3,000 shares.  

Allied Capital Corp. has a market cap of $3.18 billion; its shares were traded at around $18.73 with P/S ratio of 6.52. The dividend yield of Allied Capital Corp. stocks is 13.8%.

 

  • 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.

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