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The financial sector has been the top performing group in three months performance, with a 5.8% gain during that period.

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Based on this observation I screened for companies in the financial sector where at least one insider made a buy transaction during the month of November. Here is a look at five stocks that I found.

1. Janus Capital Group (NYSE:JNS) is a global investment firm offering strategies from three individual investment boutiques: Janus Capital Management, Intech Investment Management and Perkins Investment Management. Each manager employs a research-intensive approach that is distinct within its respective asset class. This multi-boutique approach enables the firm to provide style-specific expertise across an array of strategies, including growth, value and mathematical equities, fixed income and alternatives through one common distribution platform. At the end of September 2012, JCG managed $158.2 billion in assets for shareholders, clients and institutions around the globe. Based in Denver, JCG also has offices in Frankfurt, The Hague, Paris, London, Milan, Munich, Zurich, Singapore, Hong Kong, Tokyo, Melbourne, Dubai and Taipei.

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Insider buys

Dai Ichi Life Insurance Company purchased 1,087,583 shares on November 20-21, 1,351,837 shares on November 16-19, 2,366,363 shares on November 14-15, 1,282,419 shares on November 12-13, 1,185,236 shares on November 8-9, 636,769 shares on November 6-7, 799,741 shares on November 2-5, 936,118 shares on October 31 - November 1, 800,000 shares on October 15-16, 538,096 shares on October 11-12, 601,598 shares on October 9-10, 758,282 shares on October 5-8, 497,900 shares on October 3-4, 1,535,407 shares on October 1, 2,748,666 shares on September 27-28, 1,209,429 shares on September 25-26, 1,145,147 shares on September 21-24 and 1,055,052 shares on September 19-20. Dai Ichi Life Insurance Company currently holds 26,943,612 shares of Janus. Janus has 187,209,321 shares outstanding which makes Dai Ichi Life Insurance Company a 14.4% owner of Janus.

On August 10 Janus entered into a strategic alliance with The Dai-ichi Life Insurance Company, the third largest life insurer in Japan. In connection with this transaction, Dai-ichi Life plans to acquire at least 15%, and no more than 20%, of Janus' outstanding common shares through open market purchases and potentially through the exercise of conditional options issued to Dai-ichi Life by Janus.

Financials

The company reported the third-quarter financial results on October 25 with the following highlights:

Revenue$209.0 million
Net income$25.1 million
Cash$683.6 million
Debt$542.8 million

My analysis

The stock has a $15 price target from the Point and Figure chart. There have been 18 insider buy transactions and three insider sell transactions this year. There are two analyst buy ratings, five neutral ratings and three sell ratings with a average target price of $8.30. The stock is trading at a P/E ratio of 14.43 and a forward P/E ratio of 14.19. The company has a book value of $7.42 per share and the stock has a 2.87% dividend yield. I have a bullish bias for the stock based on the fundamental and technical picture.

2. First Financial Bankshares (NASDAQ:FFIN) is recognized as one of the nation's most financially secure banking institutions, with assets of $4.2 billion, 11 separately chartered affiliate banks and 53 convenient banking locations, plus a Trust Company with six convenient locations, all to serve customers in Texas markets stretching from Hereford in the Panhandle to Huntsville, north of Houston.

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Insider buys

  • Scott Dueser purchased 132,977 shares on November 16 and currently controls 403,253 shares of the company. Scott Dueser is Chairman, President and CEO of First Financial Bankshares.
  • Murray Edwards purchased 618 shares on June 5, 1,000 shares on May 23, 1,000 shares on May 17 and 1,000 shares on May 16. Murray Edwards currently controls 69,790 shares of the company. Murray Edwards has been a director of the company since 2006.
  • Johnny Trotter purchased 1,000 shares on June 4 and 3,650 shares during March 2 - May 24. Johnny Trotter currently holds 151,010 shares of the company. Johnny Trotter has been a director of the company since 2003.
  • Tucker Bridwell purchased 5,000 shares on June 21 and currently controls 132,177 shares of the company. Tucker Bridwell has been a director of the company since 2007.

Financials

The company reported the third-quarter financial results on October 18 with the following highlights:

Net income$19.8 million
Quarterly dividend$0.25 per share
Book value$17.61 per share

Outlook

Scott Dueser, Chairman, President and CEO commented on October 18:

"We continue to see good growth in loans and deposits and continue to pursue acquisition prospects to put our capital to use."

Competition

First Financial Bankshares' competitors include Bank of America Corporation (NYSE:BAC) and Wells Fargo & Company (NYSE:WFC). Here is a table comparing these companies.

CompanyFFINBACWFCIndustry
Market Cap:1.16B105.30B171.56B181.00M
Employees:980272,600267,000383.00
Qtrly Rev Growth (yoy):0.06-0.260.100.11
Revenue :205.11M80.66B77.30B69.83M
Operating Margin :0.490.180.390.35
Net Income :73.37M3.98B17.03BN/A
EPS :2.330.373.181.47
P/E :15.9026.4110.2512.49
PEG (5 yr expected):1.562.921.251.29
P/S :5.631.292.242.40

First Financial Bankshares' operating margin is above the industry average.

My analysis

The stock has a $50 price target from the Point and Figure chart. There have been 13 insider buy transactions and three insider sell transactions this year. There are 0 analyst buy ratings, two neutral ratings and 0 sell ratings for the stock currently. The stock is trading at a P/E ratio of 15.89 and a forward P/E ratio of 15.30. The stock has a 2.70% dividend yield. I have a bullish bias for the stock based on the fundamental and technical picture.

3. PIMCO Corporate & Income Opportunity Fund (NYSE:PTY) seeks maximum total return through a combination of current income and capital appreciation.

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Insider buys

William Gross purchased 169,693 shares on November 15, 26,500 shares on October 15, 56,134 shares on October 11 and 391,561 shares on October 10. William Gross currently holds 947,739 shares of the company. Mr. Gross is a founder, managing director and co-CIO of PIMCO. Mr. Gross' net worth was $2.3 billion as of September 2012.

Financials

The fund's Net Asset Value was $17.42 per share as of November 21. The fund is currently trading at a 15.38% premium to its Net Asset Value.

My analysis

The stock has a $25.5 price target from the Point and Figure chart. There have been four insider buy transactions and there have not been any insider sell transactions this year. The stock has a 7.76% dividend yield. The 200 day moving average is currently at $18.60 which could be a good entry point for the stock.

4. PIMCO Dynamic Income Fund (NYSE:PDI) seeks current income as a primary objective and capital appreciation as a secondary objective. The fund will seek to achieve its investment objectives to produce total return for shareholders by utilizing a dynamic asset allocation strategy among multiple fixed-income sectors to invest in a portfolio of fixed-income securities and related instruments of any type and any quality worldwide.

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Insider buys

Daniel Ivascyn purchased 35,000 shares on November 15, 21,400 shares on September 25, 25,000 shares on August 9 and 125,000 shares on May 24. Daniel Ivascyn currently holds 210,110 shares of the company. Daniel Ivascyn is a portfolio manager of PDI.

Financials

The fund's Net Asset Value is $28.81 per share as of November 21. The fund is trading at a 1.94% discount to its Net Asset Value currently.

My analysis

The fund started trading in May 2012. There have been four insider buy transactions and there have not been any insider sell transactions this year. The fund has a 7.52% dividend yield currently. I have a bullish bias for the fund below the Net Asset Value.

5. PIMCO Corporate Income Fund (NYSE:PCN) normally invests at least 80% of its total assets in a combination of corporate debt obligations of varying maturities, other corporate income-producing securities, and income-producing securities of non-corporate issuers, such as U.S. Government securities, municipal securities and mortgage-backed and other asset-backed securities issued on a public or private basis.

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Insider buys

William Gross purchased 20,779 shares on November 15, 28,184 shares on October 15, 250,000 shares on October 10 and 20,000 shares on August 17. William Gross currently holds 545,932 shares of the company. Mr. Gross is a founder, managing director and co-CIO of PIMCO. Mr. Gross' net worth was $2.3 billion as of September 2012.

Financials

The fund's Net Asset Value was $15.90 per share as of November 21. The fund is currently trading at a 13.71% premium to its Net Asset Value.

My analysis

The stock has a $27.75 price target from the Point and Figure chart. There have been four insider buy transactions and there have not been any insider sell transactions this year. The stock has a 7.47% dividend yield. The 200 day moving average is currently at $16.60 which could be a good entry point for the stock.

Source: 5 Financial Stocks With Recent Insider Buying