Following the stock picks of value investing gurus can be useful in investing research; however, that strategy alone can generate too many ideas to follow. For added conviction, GuruFocus provides a Double Buys page, where investors can sort what stocks both gurus and company insiders are purchasing.
By setting the Double Buys filters to only S&P 500 companies with recent trades of at least 20,000 shares, the following five companies are among those with the most guru and insider buys.
Kratos Defense & Security Solutions (KTOS, Financial)
Kratos is in the specialized security technology business and manufactures electronic components and systems for electronic attack, electronic warfare, radar, and missile systems platforms. During the first quarter, Chuck Royce (Trades, Portfolio) and Jim Simons (Trades, Portfolio) added to their positions in Kratos, while three insiders purchased shares on June 4 and 5.
Over the past year, the stock declined 19% and closed at $6.64 on June 16. Kratos has a forward P/E of 29.85 and a P/S ratio of 0.45. The company posted a loss for the last four years, with net loss of $78 million in 2014.
Kratos’ director, Bandel Carano, purchased 150,000 shares each on June 4 and 5. Another director, Amy Zegart, purchased 4,100 shares on June 4.
Last year, the company reported EBITDA per share of $0.36, down from $1.50 in 2013.
Spark Networks (LOV, Financial)
Spark Networks operates websites where adults can meet and form relationships; its key sites are JDate.com, Spark.com, BlackSingles.com, and ChristianMingle.com. Jim Simons (Trades, Portfolio) initiated a new position in the company during Q1, while Whitney Tilson (Trades, Portfolio) and Chuck Royce (Trades, Portfolio) increased their stakes.
The stock price has plunged 34% over the past year, closing at $3.33 on June 16. The P/E ratio is 32.2 and the P/S ratio is 1.4.
The company reported net loss of $1.13 million in 2014, which was a large improvement from the loss of $12.38 million the year before.
Spark insiders have been consistently buying shares since March; most recently, director Lee Barba bought 10,000 shares on June 4. In addition, 10% owner Lloyd Miller III bought a total of 71,540 shares from May 22-29.
Synta Pharmaceuticals (SNTA, Financial)
Synta develops oncology medicines for cancer patients. One of its drug candidates, ganetespib, is in Phase 3 development for non-small cell lung cancer and is in the development program for breast cancer, ovarian cancer and acute myeloid leukemia.
The stock price declined 45% in the last year and closed at $2.40 on June 16. Paul Tudor Jones (Trades, Portfolio) purchased a new holding of 200,000 shares during the first quarter, while Jim Simons (Trades, Portfolio) and Murray Stahl (Trades, Portfolio) added to their stakes.
The company has not posted a profit since FY 2009; in 2014, net loss was $380,000, a large improvement from the loss of $36.15 million the year before.
The most recent insider buys took place on April 6, when three directors purchased a total of 7,257,143 shares at a price of $1.75 per share.
Radius Health (RDUS, Financial)
Radius develops novel differentiated therapeutics for patients with osteoporosis and other endocrine-mediated diseases. The stock rose a whopping 502% over the past year, and closed at $51.73 on June 17.
During the first quarter, Jim Simons (Trades, Portfolio) initiated a new position in the stock, purchasing 133,000 shares for an average of $44.92 per share. Steven Cohen (Trades, Portfolio) increased his stake by more than 250% and now holds 1,203,300 shares in Radius.
Last year, net loss was $62.48 million, about on par with 2013’s net loss of $60.69 million.
Biotech Growth NV, a 10% owner of the company, purchased shares on six different occasions since the beginning of the year, for a total of 310,000 shares.
Calamos Asset Management (CLMS, Financial)
Calamos provides investment advisory services through open and closed-end funds, separate accounts, offshore funds and partnerships. The stock declined 8% over the past year and closed at $12.24 on June 17. The current P/E ratio is 19.8 and the P/S ratio is 0.94.
James Barrow (Trades, Portfolio) added Calamos as a new holding in his portfolio during Q1, purchasing 269,205 shares. Jim Simons (Trades, Portfolio) increased his stake by about 42%, and now holds 296,600 shares in the company.
Over the past five years, revenue declined 2.9%, while EBITDA declined 6.3%. Calamos reported EBITDA per share of $4.51 in 2014, down from $5.81 the year before.
Chairman and CEO John Calamos Sr. purchased 27,815 shares total from June 15-17. He is the top direct shareholder with 5.53% of shares outstanding.
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