This week’s list of CEO purchases brings us eight companies where the CEO bought at least $100,000 of company stock in the open market over the past week.
These purchases are of a significant size, and in the case of General Electric (NYSE:GE), a bit unique. I think CEO purchases are one of the best indicators of any insider purchases because the CEO should understand immediate catalysts and risks. It’s certainly not foolproof, but this is a great list of stocks in which to start doing research.
Below are eight stocks where the CEO has purchased at least $100,000 of company stock in the past week:
KKR Financial (KFN): KKR has a tremendous 6% yield right now, and it appears that CEO William Sonneborn believes the stock is undervalued. He bought 20,000 shares on March 2, totaling $198,000. He currently owns 422,422 shares. Management was bullish in their most recent conference call and they seem to be on the prowl for additions to their portfolio.
General Electric (GE): CEO Jeffrey Immelt bought 40,000 shares on March 1, totaling $844,000. This was particularly interesting since he hadn’t bought shares on the open market since March 2009, a time when GE shares were significantly undervalued. Immelt currently owns nearly 1.6 million shares so this most recent transaction isn’t necessarily significant to him financially, but I do think it’s significant from a credibility point of view. He’s made a number of bullish remarks in the past few months and seems to be putting some cash behind those words.
CleanTech Innovations (OTCQB:CTEK): CleanTech is a Chinese renewable energy company that was recently delisted and is now trading on the pink sheets. CEO Lu Bei took advantage of the price drop associated with the delisting to buy nearly $240,000 worth of shares on March 1.
Excel Trust (NYSE:EXL): Excel Trust is a REIT focused on shopping centers. They recently released encouraging earnings and guidance. CEO Gary Sabin has been making regular purchases and picked up $120,500 of company stock on March 1. He owns more than 500,000 shares after this transaction.
China TransInfo Technology (NASDAQ:CTFO): CTFO is a Chinese technology company that focuses on transportation planning, toll collection, taxi monitoring and other related applications. They have a $116 million market cap. CEO Xia Shudong made two purchases in the past week on March 1 and February 25. These purchases totaled 56,600 shares and he now owns more than 6 million shares, which is nearly 25% of the company. These recent purchases are part of a $2 million plan he filed in December in which he has a year to purchase shares on the open market. As part of this filing, Shudong said, “I believe that our company's shares are currently undervalued, and I am planning to invest my own funds to support this belief."
CDI Corp. (NYSE:CDI): CEO Paulett Eberhart purchased nearly $240,000 worth of company shares on February 25 and owns 16,000 shares. CDI provides engineering and IT staffing services. They recently announced earnings, which the market did not take well. However, their balance sheet appears strong and they have a nice 3.5% dividend yield.
U.S. Gold Corp. (NYSE:UXG): U.S. Gold had a secondary offering on February 24 and CEO Robert McEwen picked up more than 3 million shares at $6.50. U.S. Gold is based in Toronto, Canada and primarily mines in Mexico and Nevada. The company is going to use the proceeds of the secondary to conduct feasibility studies on some existing properties. The market appears to like the direction the company is going since shares have risen more than 20% since the offering.
Glatfelter (NYSE:GLT): Glatfelter sells specialty paper and other fiber-based engineering products. They reported better than expected earnings in early February but shares haven’t moved up since then. CEO Dante Parrini appears to be bullish on the stock as he picked up 10,000 shares on February 24 for a total of $118,500. He currently owns slightly more than 40,000 shares.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.