Janus Capital: 3 Different Insiders Have Purchased Shares This Year

Feb.23.14 | About: Janus Capital (JNS)

In this article, I will feature one financial sector stock that has 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%.

Janus Capital Group (NYSE:JNS) is a publicly owned asset management holding company with approximately $170.3 billion in assets under management.

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Insider buying during the last 30 days

Here is a table of Janus' insider-trading activity during the last 30 days.

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Richard Fredericks Director Feb 19 5,000 12,674 shares +65.2%
Richard Weil CEO Feb 5 25,000 1,749,433 shares +1.4%
Jeffrey Diermeier Director Jan 24 26,000 103,235 shares +33.7%
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There have been 56,000 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

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

Month

Insider buying / shares

Insider selling / shares

February 2014 30,000 0
January 2014 26,000 0
December 2013 0 0
November 2013 0 0
October 2013 0
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 0 0

May 2013

0

0

April 2013

0

2,403

March 2013

0

0

February 2013

0

48,343

January 2013

0

133,776

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There have been 56,000 shares purchased, and there have been 184,522 shares sold by insiders since January 2013. The month of February 2014 has seen the most insider buying.

Financials

Janus reported the full-year 2013 financial results on January 23 with the following highlights:

Revenue $873.9 million
Net income $114.7 million
Cash $830.0 million
Debt $544.6 million
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(Source: Earnings presentation)

Competition

Janus' competitors include T. Rowe Price Group (NASDAQ:TROW), Invesco (NYSE:IVZ), and Fortress Investment Group (NYSE:FIG). Here is a table comparing these companies.

Company JNS TROW IVZ FIG
Market Cap: 2.05B 20.98B 14.93B 1.99B
Employees: N/A 5,668 5,932 2,265
Qtrly Rev Growth (yoy): 0.04 0.18 0.12 0.38
Revenue: 873.90M 3.49B 4.64B 913.20M
Gross Margin: 0.67 0.63 0.33 0.18
EBITDA: 267.80M 1.73B 1.21B 232.83M
Operating Margin: 0.27 0.47 0.24 0.24
Net Income: 114.70M 1.04B 875.80M 141.60M
EPS: 0.62 3.90 2.09 0.61
P/E: 17.86 20.51 16.02 13.56
PEG (5 yr expected): 1.18 1.25 0.87 0.17
P/S: 2.31 6.03 3.23 2.17
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Janus has the highest gross margin among these four companies.

Here is a table of these competitors' insider-trading activities during the last 30 days.

Company Insider buying / shares Insider selling / shares
TROW 0 0
IVZ 0 4,000
FIG 0 60,568,275
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Only Janus has seen intensive insider buying during the last 30 days.

Conclusion

There have been three different insiders buying Janus, and there have not been any insiders selling Janus during the last 30 days. Two of these three insiders increased their holdings by more than 10%. Janus has an insider ownership of 11.32%.

The insiders purchased their shares at a price range of $10.36-$11.54. I believe Janus could be a good pick at $11 based on the intensive insider buying.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in JNS over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.