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There was intensive insider buying in Summer Infant (SUMR) in November 2012 when the stock was trading below $1.50. The stock is currently trading at $3.37 or 178.5% above the low made in November 2012.

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With this episode in mind, I screened for stocks which have seen recent intensive insider buying. 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 increase their holdings by more than 10%.

In this article I will feature two stocks that have seen intensive insider buying during the last 30 days.

1. Verifone Systems (PAY) designs, markets, and services electronic payment solutions worldwide.

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Insider buying by insider (last 30 days)

  • Jeffrey Stiefler purchased 27,900 shares on July 10 and currently controls 29,900 shares or less than 0.1% of the company. Jeffrey Stiefler has served as a director since September 2008.
  • Robert Alspaugh purchased 5,000 shares on June 25 and currently holds 5,000 shares or less than 0.1% of the company. Robert Alspaugh has served as a director since September 2008.
  • Alex Hart purchased 10,000 shares on June 14 and currently holds 23,000 shares or less than 0.1% of the company. Alex Hart has served as a director since July 2006.

Insider buying by calendar month

Here is a table of Verifone Systems' insider trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
July 201327,9000
June 201315,0000
May 201300
April 201300
March 201300
February 201300
January 201300

There have been 42,900 shares purchased and there have been zero shares sold by the insiders this year.

Financials

The company reported the fiscal 2013 second-quarter, which ended April 30, financial results on June 5 with the following highlights:

Revenue$426 million
Net loss$58.4 million
Cash$506.0 million
Debt$1.3 billion
Outlook

Guidance for the third fiscal quarter of 2013 is as follows:

  • Non-GAAP net revenues of approximately $400 million.
  • Non-GAAP net income per diluted share of approximately $0.20.

The company expects modest sequential increases in non-GAAP net revenues and non-GAAP net income per diluted share in Q4.

Competition

Verifone competes globally with suppliers, manufacturers, and distributors of electronic payment systems and services as well as suppliers of cash registers that provide built-in electronic payment capabilities and producers of software that facilitates electronic payments over the Internet. Verifone's primary competitors in these markets for POS terminals and services include Ingenico S.A. (INGIY.PK), First Data Corporation, Heartland Payment Systems (HPY), PAX Technology, Ltd., SZZT Electronics Co. Ltd., Equinox Payments, CyberNet Inc., and Spire Payments Ltd.

My analysis

There have been three different insiders buying the shares and there have not been any insiders selling the shares during the past 30 days. The company has an insider ownership of 0.10%. There are six analyst buy ratings, 11 neutral ratings and one sell rating with an average target price of $19.83. The stock is trading at a P/E ratio of 118.40 and a forward P/E ratio of 11.70. The company has a book value of $11.92 per share. I have a cautiously bullish bias for the stock currently based on the intensive insider buying.

2. Sun Life Financial (SLF), an international financial services organization, provides a range of protection and wealth accumulation products and services to individuals and corporate customers.

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Insider buying by insider (last 30 days)

  • Claude Accum purchased 1,125 shares on June 28 pursuant to a purchase/ownership plan. Claude Accum currently holds 95,946 shares or less than 0.1% of the company. Claude Accum is Executive Vice-President and Chief Risk Officer, Corporate Actuarial and Risk Management for Sun Life Financial.
  • William Anderson purchased 575 shares on June 28 pursuant to a purchase/ownership plan. William Anderson currently holds 12,419 shares or less than 0.1% of the company. William Anderson serves as a director of the company.
  • Carolyn Blair purchased 689 shares on June 28 pursuant to a purchase/ownership plan. Carolyn Blair currently holds 58,812 shares or less than 0.1% of the company. Carolyn Blair is Executive Vice-President, Human Resources for Sun Life Financial.
  • Thomas Bogart purchased 1,480 shares on June 28 pursuant to a purchase/ownership plan. Thomas Bogart currently holds 126,657 shares or less than 0.1% of the company. Thomas Bogart is Executive Vice-President, Corporate Development & General Counsel of Sun Life Financial.
  • Richard Booth purchased 1,155 shares on June 28 pursuant to a purchase/ownership plan. Richard Booth currently holds 11,717 shares or less than 0.1% of the company. Richard Booth serves as a director of the company.
  • John Clappison purchased 1,443 shares on June 28 pursuant to a purchase/ownership plan. John Clappison currently holds 32,060 shares or less than 0.1% of the company. John Clappison serves as a director of the company.
  • Dean Connor purchased 4,281 shares on June 28 pursuant to a purchase/ownership plan. Dean Connor currently holds 378,446 shares or less than 0.1% of the company. Dean Connor was appointed President and Chief Executive Officer, Sun Life Financial effective December 1, 2011, and is a member of the company's Board of Directors.
  • Mary De Paoli purchased 539 shares on June 28 pursuant to a purchase/ownership plan. Mary De Paoli currently holds 45,964 shares or less than 0.1% of the company. Mary De Paoli is Executive Vice-President, Public & Corporate Affairs and Chief Marketing Officer.
  • Kevin Dougherty purchased 1,512 shares on June 28 pursuant to a purchase/ownership plan. Kevin Dougherty currently holds 128,915 shares or less than 0.1% of the company. Kevin Dougherty is President of Sun Life Financial Canada.
  • Colm Freyne purchased 1,443 shares on June 28 pursuant to a purchase/ownership plan. Colm Freyne currently holds 123,014 shares or less than 0.1% of the company. Colm Freyne is Executive Vice-President and Chief Financial Officer of Sun Life Financial.
  • David Ganong purchased 806 shares on June 28 pursuant to a purchase/ownership plan. David Ganong currently holds 27,065 shares or less than 0.1% of the company. David Ganong serves as a director of the company.
  • Martin Glynn purchased 801 shares on June 28 - July 10 pursuant to a purchase/ownership plan. Martin Glynn currently holds 13,445 shares or less than 0.1% of the company. Martin Glynn serves as a director of the company.
  • Krystyna Hoeg purchased 898 shares on June 28 pursuant to a purchase/ownership plan. Krystyna Hoeg currently holds 34,885 shares or less than 0.1% of the company. Krystyna Hoeg serves as a director of the company.
  • Idalene Kesner purchased 711 shares on June 28 pursuant to a purchase/ownership plan. Idalene Kesner currently holds 18,950 shares or less than 0.1% of the company. Idalene Kesner serves as a director of the company.
  • Stephen Kicinski purchased 282 shares on June 28 pursuant to a purchase/ownership plan. Stephen Kicinski currently holds 24,027 shares or less than 0.1% of the company. Stephen Kicinski is Senior Vice-President and Treasurer.
  • Larry Madge purchased 641 shares on June 28 pursuant to a purchase/ownership plan. Larry Madge currently holds 56,173 shares or less than 0.1% of the company. Larry Madge is Senior Vice-President and Chief Actuary.
  • Stephen Peacher purchased 1,623 shares on June 28 pursuant to a purchase/ownership plan. Stephen Peacher currently holds 138,233 shares or less than 0.1% of the company. Stephen Peacher is Executive Vice-President and Chief Investment Officer of Sun Life Financial.
  • Réal Raymond purchased 574 shares on June 28 pursuant to a purchase/ownership plan. Réal Raymond currently holds 8,574 shares or less than 0.1% of the company. Réal Raymond serves as a director of the company.
  • Mark Saunders purchased 614 shares on June 28 pursuant to a purchase/ownership plan. Mark Saunders currently holds 52,345 shares or less than 0.1% of the company. Mark Saunders is Executive Vice-President and Chief Information Officer of Sun Life Financial.
  • Hugh Segal purchased 609 shares on June 28 pursuant to a purchase/ownership plan. Hugh Segal currently holds 10,273 shares or less than 0.1% of the company. Hugh Segal serves as a director of the company.
  • Kevin Strain purchased 562 shares on June 28 pursuant to a purchase/ownership plan. Kevin Strain currently holds 49,330 shares or less than 0.1% of the company. Kevin Strain is President, Sun Life Financial Asia.
  • Barbara Stymiest purchased 1,402 shares on June 28 pursuant to a purchase/ownership plan. Barbara Stymiest currently holds 6,765 shares or less than 0.1% of the company. Barbara Stymiest serves as a director of the company.
  • James Sutcliffe purchased 3,696 shares on June 28 pursuant to a purchase/ownership plan. James Sutcliffe currently holds 44,268 shares or less than 0.1% of the company. James Sutcliffe is Chairman of the Board.
  • Westley Thompson purchased 2,786 shares on June 28 pursuant to a purchase/ownership plan. Westley Thompson currently holds 237,383 shares or less than 0.1% of the company. Westley Thompson is President, Sun Life Financial U.S.

Insider buying by calendar month

Here is a table of Sun Life Financial's insider trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
July 20132410
June 201330,0060
May 2013500206,423
April 201300
March 201397,13817,534
February 2013436,103203,725
January 201300

There have been 563,988 shares purchased and there have been 427,682 shares sold by the insiders this year.

Financials

The company reported the first-quarter financial results on May 8 with the following highlights:

Revenue$3.8 billion
Net income$513 million
Cash$6.7 billion
Debt$5.6 billion

Competition

Sun Life Financial's competitors include Manulife Financial Corporation (MFC). Here is a table comparing these two companies.

CompanySLFMFC
Market Cap:19.08B31.69B
Employees:N/A27,913
Qtrly Rev Growth (yoy):0.190.65
Revenue:18.58B31.85B
Gross Margin:0.06-0.04
EBITDA:2.28B2.04B
Operating Margin:0.120.05
Net Income:1.41B948.82M
EPS:2.340.52
P/E:13.5433.12
PEG (5 yr expected):1.261.29
P/S:1.031.00

Sun Life Financial's P/S ratio is in line with its direct competitor's.

My analysis

There have been 24 different insiders buying the shares and there have not been any insiders selling the shares during the past 30 days. There is one analyst buy rating, three neutral ratings and two sell ratings with an average target price of $31.26. The stock is trading at a P/E ratio of 13.54 and a forward P/E ratio of 12.19. The company has a book value of $23.30 per share and the stock has a dividend yield of 4.42%. The 200-day moving average is currently at $27.05, which could be a good entry point for the stock.

Source: 1 Consumer Goods Company And 1 Financial Sector Stock With Recent Intensive Insider Buying