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The financial sector has been the best-performing group over the recent six-month period with a gain of 19.0%.

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In this article, I will feature three financial sector stocks that have seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

  1. The stock is purchased by three or more insiders within one month.
  2. The stock is sold by no insiders in the month of intensive purchasing.
  3. At least two purchasers increased their holdings by more than 10%.

1. Canadian Apartment Properties Real Estate Investment Trust (OTC:CDPYF) operates as an open-end real estate investment trust.

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Insider buying by insider (last 30 days)

  • Michael Stein purchased 21,000 shares on March 19-22 and currently holds 191,000 shares or 0.2% of the company. Michael Stein serves as a director of the company.
  • Corinne Pruzanski purchased 725 shares on March 27 and currently holds 1,590 shares or less than 0.1% of the company. Corinne Pruzanski is General Counsel and Corporate Secretary.
  • Edwin Hawken purchased 266 shares on March 15 pursuant to a purchase/ownership plan. Edwin Hawken currently holds 23,856 shares or less than 0.1% of the company. Edwin Hawken serves as a director of the company.
  • David Williams purchased 208 shares on March 26 pursuant to a purchase/ownership plan. David Williams currently holds 18,126 shares or less than 0.1% of the company. David Williams serves as a director of the company.

Insider buying by calendar month

Here is a table of Capreit's insider trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
March 201322,1990
February 20134,2360
January 20134,2900

The month of March has seen the most insider buying.

Financials

The company reported the full year 2012 financial results on February 26 with the following highlights:

Revenue$412.4 million
Normalized Funds From Operations$132.6 million
Book value$24.80 per share
Monthly dividend$0.093 per share

Competition

Capreit competes for suitable real property investments with individuals, corporations and institutions (both Canadian and foreign) and other real estate investment trusts that are presently seeking, or which may seek in the future, real property investments similar to those desired by Capreit. An increase in the availability of investment funds and/or an increase in interest in real property investments may tend to increase competition for real property investments, thereby increasing purchase prices and reducing the yield on them.

My analysis

There have been four different insiders buying the shares and there have not been any insiders selling the shares during the last 30 days. The stock is trading at a P/E ratio of 5.17. The company has a book value of $24.80 per share and the stock has a dividend yield of 4.51%. I have a cautiously bullish bias for the stock currently, based on the intensive insider buying.

2. Independent Bank Group (NASDAQ:IBTX) operates as a bank holding company for Independent Bank that provides commercial banking products and services for small to medium size businesses, professionals, and individuals in North and Central Texas.

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Insider buying by insider (last 30 days)

  • Michael Viola purchased 19,231 shares on April 3 pursuant to an initial public offering. Michael Viola currently holds 19,231 shares or 0.2% of the company. Michael Viola was elected to the Board of Directors in February 2013.
  • Jack Radke purchased 7,692 shares on April 3 pursuant to an initial public offering. Jack Radke currently holds 117,199 shares or 1.0% of the company. Jack Radke has served as a member of the Board of Directors of the company since it was formed in 2002.
  • Brian Hobart purchased 5,769 shares on April 3 pursuant to an initial public offering. Brian Hobart currently holds 199,311 shares or 1.7% of the company. Brian Hobart is Vice Chairman and Chief Lending Officer of the company and President Independent Bank Central Texas.
  • William Fair purchased 6,731 shares on April 3 pursuant to an initial public offering. William Fair currently holds 173,534 shares or 1.5% of the company. William Fair is a member of the Board of Directors of the company.
  • Douglas Cifu purchased 19,131 shares on April 3 pursuant to an initial public offering. Douglas Cifu currently holds 47,963 shares or 0.4% of the company. Douglas Cifu is a member of the company's Board of Directors.
  • Brian Aynesworth purchased 7,692 shares on April 3 pursuant to an initial public offering. Brian Aynesworth currently holds 389,036 shares or 3.3% of the company. Brian Aynesworth is a member of the company's Board of Directors.
  • Daniel Brooks purchased 2,885 shares on April 3 pursuant to an initial public offering. Daniel Brooks currently holds 203,365 shares or 1.7% of the company. Daniel Brooks is Vice Chairman, Chief Risk Officer and a director of the company.
  • Torry Berntsen purchased 20,192 shares on April 3 pursuant to an initial public offering. Torry Berntsen currently holds 41,792 shares or 0.4% of the company. Torry Berntsen is President, Chief Operating Officer and a director of the company.
  • David Brooks purchased 4,192 shares on April 3 pursuant to an initial public offering. David Brooks currently holds 1,013,898 shares or 8.5% of the company. David Brooks is Chairman of the Board, CEO and a director of the company.

Insider buying by calendar month

Here is a table of Independent Bank's insider trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
April 201393,5150
March 201300
February 201300
January 201300

Independent Bank had its IPO on April 3.

Financials

The company reported the full year 2012 financial results with the following highlights:

Pro forma net income$12.1 million
Book value$15.06 per share
Tangible book value$11.19 per share

In the third quarter of 2013, the company intends to commence the payment of a $0.06 per share dividend on a quarterly basis to holders of its common stock.

Competition

Independent Bank competes in the commercial banking industry and firmly believes that the bank's long-standing presence in the community and personal service philosophy enhances its ability to attract and retain customers. This industry is highly competitive, and the bank faces strong direct competition for deposits, loans, and other financial-related services. Independent Bank competes with other commercial banks, thrifts and credit unions. Although some of these competitors are situated locally, others have statewide or nationwide presence. In addition, Independent Bank competes with large banks in major financial centers and other financial intermediaries, such as consumer finance companies, brokerage firms, mortgage banking companies, insurance companies, securities firms, mutual funds and certain government agencies as well as major retailers, all actively engaged in providing various types of loans and other financial services.

My analysis

The stock started trading on April 3 after the initial public offering. There were nine different insiders buying the shares and there were no insiders selling the shares at the IPO. All executive officers and directors as a group own 19.4% of the company. I have a neutral bias for the stock currently based on the stock's significant premium to the IPO price.

3. Crombie Real Estate Investment Trust (OTC:CROMF) operates as an open-ended real estate investment trust. It owns and manages commercial real estate properties in Atlantic Canada.

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Insider buying by insider (last 30 days)

  • Donald Clow purchased 22,937 shares on March 27 pursuant to a purchase/ownership plan. Donald Clow currently holds 135,854 shares or 0.1% of the company. Donald Clow was appointed as President and Chief Executive Officer on August 6, 2009.
  • Gary Finkelstein purchased 3,844 shares on March 27 pursuant to a purchase/ownership plan. Gary Finkelstein currently holds 36,158 shares or less than 0.1% of the company. Gary Finkelstein is Regional Vice-President, Central & Western Canada.
  • Glenn Hynes purchased 10,162 shares on March 27 pursuant to a purchase/ownership plan. Glenn Hynes currently holds 57,666 shares or less than 0.1% of the company. Glenn Hynes was appointed Chief Financial Officer and Secretary on June 28, 2010.
  • Scott MacLean purchased 2,638 shares on March 27 pursuant to a purchase/ownership plan. Scott MacLean currently holds 27,415 shares or less than 0.1% of the company. Scott MacLean is Senior Vice-President of Operations, Atlantic Region.
  • Patrick Martin purchased 3,941 shares on March 27 pursuant to a purchase/ownership plan. Patrick Martin currently holds 37,272 shares or less than 0.1% of the company. Patrick Martin was appointed Regional Vice-President, Atlantic Canada on March 1, 2010.

Insider buying by calendar month

Here is a table of Crombie Real Estate Investment Trust's insider trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
March 201343,5220
February 201300
January 201300

The month of March 2013 has seen all of the insider buying.

Financials

The company reported the full year 2012 financial results on February 28 with the following highlights:

Revenue$256.0 million
Funds from operations [FFO]$90.7 million
Book value8.68 per share
Monthly dividend$0.07 per share

Competition

Crombie Real Estate Investment Trust's peer group consists of the following: Allied Properties Real Estate Investment Trust (OTC:APYRF), Artis Real Estate Investment Trust (OTC:ARESF), Calloway Real Estate Investment Trust (OTC:CWYUF), Canadian Real Estate Investment Trust (OTC:CRXIF), Dundee Real Estate Investment Trust (OTC:DRETF), First Capital Realty Inc. (OTC:FCRGF), Morguard Real Estate Investment Trust (OTC:MGRUF), Primaris Retail Real Estate Investment Trust (OTC:PMZFF), RioCan Real Estate Investment Trust (OTCPK:RIOCF). Here is a table comparing these companies.

CompanyCrombiePeer average
Price / FFO14.1515.99
Dividend yield5.93%4.99%
Payout / FFO83.9778.40

Crombie Real Estate Investment Trust's valuation looks attractive compared to its peers.

My analysis

There have been five different insiders buying the shares and there have not been any insiders selling the shares during the last 30 days. The stock is trading at a P/E ratio of 32.87. The company has a book value of $8.68 per share and the stock has a dividend yield of 5.93%. I have a cautiously bullish bias for the stock currently based on the intensive insider buying.

Source: 2 REITs And A Bank With Recent Intensive Insider Buying