Insider buying can be a great indicator that a coming catalyst may be near. After all, insiders only buy because they think the stock price will go up or they want you to think so. If you’re on the prowl for new ideas to research, this list is a good one to look at.
I prefer management insider buys over directors. CEOs and CFOs should have a better feel for how the day to day business is going than the directors, and they should have a better idea if the stock price is reflecting that. I’ll continue to do this list on a weekly basis, and I’m confident we’ll unearth some interesting choices. To see last week’s list, please visit: Insider Buying: Four Microcaps With CFO Buys in the Last Week
Over the last week we have the following 10 stocks seeing CFO buys:
- Axcelis Technologies (ACLS): Axcelis manufactures and services ion implantation and dry strip equipment used in the fabrication of semiconductors. CFO Jay Zager bought 10,000 shares on February 4 for $2.50. CEO May Puma also made a purchase on February 4. You can read more information about her purchase here.
- Cadence Design Systems (CDNS): Cadence Design is an electronic design automation company that helps semiconductor designers and manufacturers effectively reach their goals. CFO Geoffrey Ribar purchased 10,000 shares on February 7 at $9.48. Notably, he made this purchase just four days after a 6% spike up after earnings. Ribar now owns 50,000 shares.
- Furniture Brands (FBN): A whole host of insiders bought into Furniture Brands on February 7. CFO Steven Rolls led the charge with 10,000 shares $3.90. Three other managers, a director, and the CEO and Chairman also bought a total of 60,000 shares in addition to Rolls. Furniture Brands produces brands like Thomasville and Broyhill. The stock has dropped 4% since reporting disappointing earnings on February 2.
- First Community Corp. (FCCO): First Community is a tiny $22 million bank. CFO Joseph Sawyer bought 275 shares on February 2 for $6.50. This was his first purchase since October of 2009. The bank reported decent earnings in January and saw its share price rise in the middle of the month, although volume is extremely light.
- First Defiance Financial (FDEF): First Defiance has one of the better bank names out there. Like most banks, they’ve had a tough five year stretch, but they’re still standing. P/B is 0.3. CFO Donald Hileman is showing some confidence by buying 1301 shares at $13.10. He currently owns 5,533 shares.
- First South Bancorp (FSBK): I highlighted First South in last week’s update, which you can find here. CFO William Wall has made another small purchase on February 2 for 300 shares at $5.69.
- Magyar Bancorp (MGYR): CFO Jon Ansari bought 631 shares of this tiny $24 million bank on February 1, paying $4.09. Magyar is a profitable New Jersey bank trading at 0.5 times book and with 2010 EPS of $0.80. This one deserves a deeper look.
- NeoPhotonics (NPTN): NeoPhotonics is a Chinese integrated circuit manufacturer who had an IPO on February 2. Both the CEO and CFO made an open market purchase that morning. CFO Daniel Fay bought 1,000 shares at $14. You can read more about NeoPhotonics here.
- United Bancshares (UBOH): United Bancshares is another tiny bank with a CFO purchase over the last week. Brian Young bought 101 shares on February 1 at $9.56. Two others made small purchases as well. United Bancshares is an Ohio-based $35 million bank. Like Magyar, United Bancshares is profitable and pays out a tremendous 6% dividend yield.
- Virtus Investment Partners (VRTS): CFO Michael Angerthal bought 2,000 shares on February 3 for $53.86. Virtus is a unique asset manager that was spun off from The Phoenix Companies on December 31, 2008. They announced excellent earnings on February 1 and have $29.5 billion under management.