This week’s list of CFO purchases is an eclectic group with a few recent IPOs, a REIT, a bank, and a couple of energy companies. Most purchases were on the larger side, especially considering the income of the CFO. I believe companies with recent insider purchases are great places to find stocks to do more research on. I prefer management purchases over director purchases because they should know more about the issues the company faces, and possible catalysts.
Below are six stocks where the CFO made a purchase of company stock on the open market in the past week.
OmniAmerican Bancorp (OABC): OmniAmerican shares have risen by 50% over the past year, but like most banks today it still sells for less than book value. OmniAmerican is based in Fort Worth, Texas, was founded in 1956 and has 15 branches. CFO Deborah Wilkinson has bought nearly 14,000 shares in three separate transactions on February 22 and February 24. She currently owns 21,748 shares valued at $332,000. Not bad for someone with a salary of $243,000.
Rex Energy Corp. (REXX): Rex Energy is a $540 million market cap oil and gas company. It operates more than 2,000 wells in the United States, including in the Marcellus Shale. CFO Thomas Stabley bought 1,000 shares on February 22 at $11.50 per share. He was joined by three directors and two vice presidents who made purchases within a few days of him. Stabley owns 576,000 shares.
Innospec (IOSP): Innospec is near 52-week highs, which is where CFO Ian Cleminson has made recent purchases. He bought 2,507 shares on February 18 and on February 24, and collected some options on February 22. He currently owns 16,488 shares worth more than $400,000. Innospec is a chemical manufacturer primarily focused on fuel additives. The company was founded in 1938 and is based out of the U.K. It reported strong earnings a few weeks ago and had 2010 EPS of $2.97 with a few special items slightly reducing it. Business appears strong.
Two Harbor Investment (TWO): Two Harbor is a REIT focused on residential mortgage loans. Both its CEO and CFO purchased company stock recently. I wrote about the CEO’s purchase here. The CFO, Jeffrey Stolt, bought $21,600 worth of shares on February 18.
UGI Corp. (UGI): UGI is also near its 52-week highs. It is a propane distributor based out of Pennsylvania. The stock sports a market cap of $3.45 billion. CFO Robert Flexon bought 5,000 shares on February 16 totaling $160,300. Apparently he didn’t get the memo, as five other insiders made substantial sales so far in 2011, including the CEO of a subsidiary, the COO, the general counsel and the former CFO. Flexon just took the reins in late January.
Pacira Pharmaceuticals (PCRX): Pacira’s CFO, James Scibetta, bought 5,000 shares of company stock on February 15. The total purchase was for $35,200. Pacira had an IPO on February 2 prices at $7 per share, which most of management and the board participated in. The company raised about $36 million in order to bring its Exparel drug to market. Exparel is a long-acting anesthetic.