Each week I highlight large insider buying by CFOs and CEOs. Last week’s CFO list had six companies with CFO purchases of at least $50,000. This week features a number of large purchases as well, with five out of the six CFO buys totaling at least $50,000, and three of the CFO’s spending more than $100,000 buying their own company’s shares on the open market.
As I've mentioned before, CFO purchases can often be an indicator of a coming catalyst for the stock, but make sure you do the research. Without further ado, here is this week’s list of CFO Buys:
Farmer Brothers Company (FARM): CFO Jeffrey Wahba bought 5,000 shares of this coffeemaker on March 14 for a total purchase of $55,000. He owns a total of 12,500 shares. Farmer Brothers is a $169 million market cap California based company with a 2.2% dividend yield. The stock has traded around its yearly lows for the last few months and is 5% lower than when Wahba made his purchase. Costs have skyrocketed for the company over the last year, and it recently announced a price increase for customers.
Molson Coors Brewing Company (TAP): Molson Coors is a well-respected beer maker that has turned into a value stock. Valuations are cheap here, and CFO Stewart Gindinning took advantage on March 11 and bought 3,000 shares at $44.06 for a total buy of $132,200. He currently owns more than 55,000 shares. There’s been some talk recently about Molson Coors being a takeover candidate, but shares are still reasonable, and the dividend yield is 2.6%.
Graham Corp. (GHM): Graham Corp. is a $204 million market cap New York-based manufacturer. The company builds vacuums and heat transfer equipment for refiners, chemical companies, ship builders, and others. CFO Jeffrey Glajch bought $21,000 worth of shares on March 11. He currently owns nearly 17,000 shares.
CME Group (CME): CME Group CFO James Parisi bought 670 company shares on March 10. His purchase price was $299.67, making the total transaction worth about $201,000. Parisi currently owns 6,316 shares. Parisi bought these shares for about 5% less than the price at which Executive Chairman Terrence Duffy sold 1,589 shares a week and a half earlier on February 28. Shares are even cheaper today. The exchange operator pays a 1.9% dividend.
Interline Brands (IBI): Interline Brands is a direct marketer and distributor of plumbing, electrical, hardware, HVAC and other items. The Jacksonville, Florida-based company has a market cap of $663 million. CFO John Ebner made a purchase of company stock on March 8 totaling $106,900. He currently owns 15,000 shares, and had made a 10,000 share purchase last year around this time as well.
Blue Coat Systems (BCSI): Blue Coat is an IT provider serving more than 15,000 customers throughout the world. It was featured on Seeking Alpha in February here: Just One Stock: The IT Provider With Growth and M&A Appeal. Blue Coat’s CFO, Gordon Brooks, bought 2,720 shares on March 7. This purchase totaled $75,000. He currently owns more than $265,000 of company stock.
Disclosure: I am long CME.