Over the past week six stocks had CFO purchases of at least 1,000 shares. I believe that insider purchases may be an indicator of a coming catalyst for a company, especially when the insider purchases are from management, CEOs and CFOs. CFO purchases in particular may prompt investors to take a closer look at the company and see if there is information the market may be overlooking. While certainly not foolproof, CFOs often do not have the personal resources to make large investments, so large company ownership relative to their income shows a strong faith in the future of the stock. The six stocks listed below may be worth more research:
Black Hills Corp. (BKH): Black Hills is a utility provider and also an oil and natural gas explorer. They primarily operate in Western states. They pay an impressive 4.8% dividend. CFO Anthony Cleberg bought 1,000 shares at $30.26 on February 14. He’s also made a number of purchases in the last three months and currently holds about 30,000 shares of the company.
Micronetics (NOIZ): Micronetics is a tiny New England-based $19 million market cap communications component manufacturer. CFO Carl Lueders bought 2,000 shares on February 14 for $4.12. He currently owns 17,000 shares.
Peapack-Gladstone Financial Corp. (PGC): Peapack-Gladstone is a $117 market cap bank operating in New Jersey. CFO Jeffrey Carfora has made four open market purchases in the past year. His most recent buy was on February 11. He purchased 1,000 shares at $13.50. He owns about 18,500 shares in total. While this may not seem like a lot, considering his annual pay is listed at only $147,000, it’s a significant investment for him. Peapack-Gladstone is a profitable bank trading at about 1.2 times book. The bank took more than $28 million of TARP funds and has not fully repaid the government as of yet. It appears that their CFO is confident that will happen, however.
Research Frontiers (REFR): This is an interesting one. Research Frontiers’ CEO and Vice President made sales in the past few days after a huge stock jump leading up to February 8. Share prices increased from the $6.50 range to more than $9 because of a deal it made with Mercedes-Benz. The company’s products “control the flow of light.” It’s not as far out as it sounds. Their contract with Mercedes-Benz is for a smart glass where drivers can control the tint. After the price jump their CFO, Seth Van Voorhees, made a 24,000 share purchase on February 10 at $8.65. This price was higher than the other insider sales prices. Van Voorhees owns 48,000 shares.
Summit Hotel Properties (INN): CFO Stuart Becker joined six others buying shares from Summit Hotel’s IPO on February 9. These shares were prices at $9.75 and Becker purchased 2,500 shares. Summit Hotel is a hotel investment company which currently owns 65 hotels in 19 states.
TRC Companies (TRR): TRC Companies is a construction management company with an $83 million market cap. They are primarily focused on infrastructure and energy projects. CFO Thomas Bennet bought 6,000 shares over the last two weeks at prices in the $3.57 to $3.80 range. The lightly traded stock has jumped 11% since February 8. Bennet owns about 175,000 shares. The company reported improving financial results on February 2, but management is cautious about the current business environment.