David Castagnola (Insider Trades), CEO and president of Wesco Aircraft Holdings Inc. (WAIR), bought 1,201 shares of the company on Feb. 22, 2016. The company distributes and provides comprehensive supply chain management services to the global aerospace industry. WAIR has a market cap of $1.25 billion and a P/S ratio of 0.83.
The volume and number of WAIR insider buys increased from 2014 to 2016. There was an absence of insider buys in 2013 and 2014, but not an absence of insider sells. Thirty-five and 45 transactions were made in those two years, respectively, which amounted to a total of 730,079 shares sold in 2013 and 7,298,720 shares sold in 2014.
In 2015 there were no insider sells but five insider buys of 284,928 shares. Though the number of WAIR insider purchases in 2015 is equal to the number of insider purchases in the first month and a half of 2016, the total number of shares acquired per year is about 1.5 times greater in the latter year. The shift of all insider sells in 2014 to all insider buys in 2015 correlates to a decrease in month-end price of about $4, from $17.75 to $13.99 per share.
WAIR Executive Vice President and COO Alex Murray (Insider Trades) also bought 16,500 shares of the company for an average per-share price of $12.05 on Feb. 18, 2016. Find more information about insider transactions with WAIR here.
The company reported net income of $20.61 million, or 21 cents per share, in the fiscal first quarter of 2016 ended Dec. 31, 2015. Net income increased from $19.73 million, or 20 cents per share, reported by the company in the corresponding quarter of 2014. Gross profit, however, decreased from $105.92 million, to $96.63 million in the same period of time.
Castagnola commented, “Fiscal 2016 first quarter results reflect progress in all areas,” and that “sales in the quarter were adversely impacted by the conclusion in fiscal 2015 of a large commercial contract.” Annual revenue increased 21.09% since 2011, but net income follows a decreasing trend line.
The company announced an extension on an integrated supply chain services agreement with GKN Aerospace on Feb. 9, 2016. Under the extended agreement, Wesco will provide integrated supply chain services for C-class aerospace hardware and expand chemical services for GKN, a global supplier to the aviation industry.
Castagnola stated that the agreement with GKN “deepens [the company’s] relationship in North America and Europe,” as well as “provides opportunities for further expansion in the future.”
Joel Greenblatt (Trades, Portfolio) and Chuck Royce (Trades, Portfolio) both increased their stakes in WAIR during the fourth quarter of 2015. Greenblatt acquired 170,768 shares of WAIR, increasing his stake by 78.14%. Royce purchased 216,100 shares at $12.46 per share, increasing his stake in the company by 10.22%. The total estimated gains of these holdings are negative 5% and 5%, respectively. Fing more information about guru transactions with WAIR here.Ă‚
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