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The Financial Select Sector SPDR ETF (NYSEARCA:XLF) was trading as low as $5.88 in March 2009. The index is currently trading at $20.64 or 251.0% above the low made in March 2009.

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In this article, I will feature two 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 increase their holdings by more than 10%.

1. Synovus Financial Corp. (NYSE:SNV), a financial services and bank holding company, provides integrated financial services.

(click to enlarge)Insider buying by insider (last 30 days)

  • Catherine Allen purchased 20,000 shares on July 24 pursuant to a public offering. Catherine Allen currently holds 60,906 shares or less than 0.1% of the company. Catherine Allen serves as a director of the company.
  • Mark Holladay purchased 1,500 shares on July 24 pursuant to a public offering. Mark Holladay currently holds 316,816 shares or less than 0.1% of the company. Mark Holladay is Executive Vice President, Chief Risk Officer.
  • Neal Purcell purchased 50,000 shares on July 24 pursuant to a public offering. Neal Purcell currently holds 247,262 shares or less than 0.1% of the company. Neal Purcell serves as a director of the company.
  • Joseph Prochaska purchased 16,100 shares on July 24 pursuant to a public offering. Joseph Prochaska currently holds 90,370 shares or less than 0.1% of the company. Joseph Prochaska serves as a director of the company.
  • Michael Goodrich purchased 100,000 shares on July 23 pursuant to a public offering. Michael Goodrich currently holds 647,601 shares or less than 0.1% of the company. Michael Goodrich serves as a director of the company.
  • Stephen Butler purchased 20,000 shares on July 24 pursuant to a public offering. Stephen Butler currently holds 44,418 shares or less than 0.1% of the company. Stephen Butler serves as a director of the company.
  • Kessel Stelling purchased 20,000 shares on July 24 pursuant to a public offering. Kessel Stelling currently holds 1,238,284 shares or 0.1% of the company. Kessel Stelling is Chairman, CEO, & President of the company.

Insider buying by calendar month

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

MonthInsider buying / sharesInsider selling / shares
July 2013227,6000
June 201300
May 201320,0000
April 201300
March 201300

There have been 247,600 shares purchased and there have been zero shares sold by the insiders since March 1.

Financials

The company reported the second-quarter financial results on July 18 with the following highlights:

Net income$30.7 million
Book value$2.86 per share
Tangible book value$2.83 per share

On July 19 Synovus announced it had priced a public offering of 59,870,550 million shares of its common stock at $3.09 per share. The offering generated net proceeds of approximately $175 million.

Competition

The financial services industry is highly competitive and could become more competitive as a result of recent and ongoing legislative, regulatory and technological changes, and continued consolidation and economic turmoil within the financial services industry. As of December 31, 2012, Synovus was the second largest bank holding company headquartered in Georgia, based on assets. Customers for financial services are generally influenced by convenience, quality of service, personal contacts, price of services and availability of products.

My analysis

There have been seven 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 0.80%. There are five analyst buy ratings, 10 neutral ratings and four sell ratings with an average target price of $3.06. The stock is trading at a P/E ratio of 3.85 and a forward P/E ratio of 19.24. The company has a book value of $2.86 per share and the stock has a dividend yield of 1.22%. I believe the stock could be a good pick at the book value based on the intensive insider buying.

2. AGF Management Limited (AGF.B) is a publicly owned investment manager.

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Insider buying by insider (last 30 days)

  • AGF Management Limited purchased 585,600 shares on June 30.
  • Robert Bogart purchased 845 shares on June 30 pursuant to a purchase/ownership plan. Robert Bogart currently holds 5,333 shares or less than 0.1% of the company. Robert Bogart is Chief Financial Officer, Executive Vice President.
  • Rose Cammareri purchased 753 shares on June 30 pursuant to a purchase/ownership plan. Rose Cammareri currently holds 11,436 shares or less than 0.1% of the company. Rose Cammareri is Executive Vice President, Retail Distribution of AGF Investments Inc.
  • Gordon Forrester purchased 57 shares on June 30 pursuant to a purchase/ownership plan. Gordon Forrester currently holds 786 shares or less than 0.1% of the company. Gordon Forrester is Executive Vice President, Marketing and Product, Strategy and Development of AGF Investments Inc.
  • Judy Goldring purchased 1,145 shares on June 30 pursuant to a purchase/ownership plan. Judy Goldring currently holds 18,005 shares or less than 0.1% of the company. Judy Goldring is Chief Operating Officer, Executive Vice President, Non-Independent Director.
  • Martin Hubbes purchased 1,075 shares on June 30 pursuant to a purchase/ownership plan. Martin Hubbes currently holds 12,081 shares or less than 0.1% of the company. Martin Hubbes is Executive Vice President and Chief Investment Officer of AGF Investments Inc.
  • Geoffrey Squibb purchased 375 shares on July 19 and currently holds 16,345 shares or less than 0.1% of the company. Geoffrey Squibb serves as a director of the company.

Insider buying by calendar month

Here is a table of AGF Management Limited's insider trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
July 20133750
June 2013589,4750
May 2013753,1860
April 2013758,2640

There have been 2,101,300 shares purchased and there have been zero shares sold by the insiders since April 1.

Financials

The company reported the second-quarter financial results on June 26 with the following highlights:

Revenue$126.9 million
Net income (adjusted)$15.5 million
Cash$357.1 million
Debt$308.7 million

Outlook

The company expects 2013 net sales to improve relative to 2012.

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Competition

Here is a table comparing AGF Management Limited against the asset management industry.

AGF-B.TO vs. Industry Leaders
StatisticIndustry LeaderAGF-B.TOAGF-B.TO Rank
Market CapitalizationSDR.L6.80B1.07B364 / 852
P/E RatioHL.L3,435.25135.56199 / 852
PEG Ratio (ttm, 5 yr expected)ICGE72.00 N/A
Revenue Growth (Qtrly YoY)VBP.AXN/A-4.60%387 / 852
EPS Growth (Qtrly YoY)DP.PA2719.30%N/AN/A
Long-Term Growth Rate (5 yr)MFG.AX40.00%N/AN/A
Return on EquityJDT.LN/A-0.12%617 / 852
Long-Term Debt/Equity  31.231N/A

AGF Management Limited ranks 364/852 in market capitalization.

My analysis

There have been seven different insiders buying the shares and there have not been any insiders selling the shares during the past 30 days. The stock is trading at a P/E ratio of 135.56 and the stock has a dividend yield of 8.9%. The company has a book value of $11.36 per share. I believe the stock could be a good pick at the book value based on the intensive insider buying.

Source: 2 Financial Sector Stocks With Recent Intensive Insider Buying