John Thomas (Insider Trades), executive vice president of Cubic Corp. (CUB), bought 2,000 shares of the company on Feb. 10. The average price per share was $31.46 for a total transaction cost of $62,920. Cubic Corp. designs, integrates, and operates systems, products, and services focused in transportation, defense training, and secure communications markets. The company has a market cap of $850.17 million and a P/S ratio of 0.60.
There were four CUB insider transactions, all buys, and amounting to 11,956 total shares in the first two months of 2016. There were no insider trades in 2015, and six sells totaling 14,460 shares in 2014. Thomas made one other transaction, a sale of 2,500 shares at an average per share price of $53.75. The increase in number and volume of insider trades in 2016 correlates to a decrease in CUB month end price of $30.80 per share. This is the lowest CUB month-end price since 2013. 
CUB Director John Warner (Insider Trades) also increased his stake in the company, buying 9,000 shares at an average per share price of $31.71. For more information about insider trades with CUB, click here.
The company reported net loss of $5.4 million, or 20 cents per share in the first fiscal quarter of 2016 ended on Dec. 31, 2015. Net income decreased from $5.2 million, or 19 cents per share in the previous year’s fourth quarter. Cubic President and CEO Bradley Feldmann commented that the first fiscal quarter is historically the company’s least profitable, and expenses from acquisitions of TerLogics and GATR increased the costs. Cubic announced the acquisition of GATR Technologies, a manufacturer of deployable satellite communication terminal solutions, on Feb. 2 The purchase price was $232.5 million, and the company will continue to operate within Cubic and expand in Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR) space. TerLogics, a provider of real-time Full Motion Video PED for the Department of Defense, was purchased by Cubic for $39 million, with $9 million of contingent consideration. Feldmann commented that the acquisition of these two companies will help Cubic “expand our footprint in the C4ISR and SATCOM markets.” Cubic’s board of directors approved a semiannual dividend of 13.5 cents per share to shareholders of record on Aug. 18, 2015. Both annual net income and annual revenue follow an increasing trend line. 
According to GuruFocus.com information, Cubic Global Defense Systems has a business predictability rank of 1 out of 5 stars. For more information about business predictability rank, click here.
Jim Simons (Trades, Portfolio) increased his stake in the company in the fourth quarter of 2015 by 34.85%. Simons purchased 107,500 shares of CUB for an average price of $45.39 per share. The total estimated loss of the holding since the fourth quarter of 2014 is 30%. For more information about guru transactions with the company, click here.
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