Craig Bram (Insider Trades), CEO and president of Synalloy Corp. (SYNL), acquired 26,500 shares in the company on Sept. 6. The price per share was $7.46 for a total transaction of $197,690.
Synalloy is a holding company with two major segments: Metals and Chemicals. The company has a market cap of $65.8 million.
Synalloy's number of insider buys decreased from five to two between 2013 and 2014; however, the volume of Synalloy shares acquired by insiders nearly doubled from 6,602 to 12,896 during that time. The number and volume of Synalloy's insider purchases increased to 16 transactions totaling 41,640 shares in 2015. There have been eight insider buys totaling 71,004 shares year to date.
Including the aforementioned transaction, Bram purchased 63,736 shares in 12 transactions since 2013, and another Synalloy insider, Senior Vice President and CFO Dennis Loughran (Insider Trades), purchased 10,000 shares for $7.51 per share on Sept. 6.
Synalloy's month-end price began to drop at the start of 2015 and continued through the year, correlating to an increase in the number and volume of Synalloy insider purchases. For more information about insider trades with Synalloy, click here.
The company reported a net loss of $1.682 million, or 18 cents per share, for the three months ended June 30. Net income decreased from $2.455 million, or 28 cents per share, reported for fiscal 2015's second quarter, ended on July 4, 2015. Net sales decreased from $50.163 million to $34.907 million when comparing the time periods.
The Metals and Chemicals segments experienced decreases of about 30% and 25% from the fiscal second quarter of 2015 to the fiscal second quarter of 2016.
Synalloy announced the close on an asset-based (ABL) credit facility with its bank, Branch Banking and Trust Company (BB&T) and its entry into a purchase and sale agreement for sale-leaseback of real estate properties in Tennessee, South Carolina, Texas and Ohio. The agreement of $45.0 million will be used to refinance the existing line of credit and two term loans currently outstanding to BB&T of about $24.2 million. The company expects net proceeds of approximately $21.75 million on the sale-leaseback of $22.0 million.
According to GuruFocus.com information, Synalloy has a business predictability rank of 1 out of 5 stars. For more information about business predictability rank, click here.
Chuck Royce (Trades, Portfolio) and Jim Simons (Trades, Portfolio) increased their stakes in Synalloy during the second quarter. Royce purchased 35,000 shares at an average per share price of $7.75. Royce purchased 19,300 shares of Synalloy in the previous quarter for an average price of $7.63 per share. Simons increased his stake in the company by 33.28%, purchasing 38,100 shares of Synalloy after increasing his stake in the company by 12.47% in the first quarter.
For more information about guru trades with Synalloy, click here.
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