6 Financial Stocks With New Insider Buying

|
 |  Includes: EF, FMER, IVR, KKR, LM, LTS
by: Rougemont
Many financial stocks have been weak lately. Investors have been concerned with the possibility of a double dip recession in housing, especially with oil prices surging to $108 per barrel last week. More news was released that points to continued weakness in the housing market. Read about fresh concerns for the housing market here: http://blogs.reuters.com/jim-saft/2011/03/24/housing-raises-us-recession-alert/
There is plenty of bad news which could hurt banks and other related financials, but that hasn't stopped insiders from buying shares in the companies below. I have provided links for each stock which verify the insider buying filed with the SEC. Here are the stocks:
Legg Mason, Inc., (NYSE:LM) is trading around $36.76. Legg Mason is a leading asset management company based in Maryland. These shares have traded in a range between $24.94 to $37.72 in the last 52 weeks. The 50 day moving average is $34.91 and the 200 day moving average is $32.16. LM is estimated to earn about $1.63 per share in 2011 and $2.07 in 2012. You can see the recent insider buying here: http://www.insidercow.com/history/company.jsp?company=lm
What Legg Mason insiders and other investors might be seeing: According to Yahoo Finance, the book value is $37.89, so the shares look like a good value from that metric. The shares have moved well above the 50 and 200 day moving averages, so I would wait for a pullback before considering these shares. LM pays a small dividend of 24 cents per share.
FirstMerit Corporation (NASDAQ:FMER) is trading around $17.38. FirstMerit is a regional bank based in Ohio. These shares have traded in a range between $16.03 to $24.42 in the last 52 weeks. The 50 day moving average is $17.04 and the 200 day moving average is $17.77. FMER is estimated to earn about $1.09 per share in 2011 and $1.36 in 2012. You can see the insider buying here: http://www.insidercow.com/history/company.jsp?company=fmer
What FirstMerit insiders and other investors might be seeing: FMER pays a dividend of 64 cents which is equivalent to a 3.8% yield. The book value is $13.86. These shares were trading for about $20 in January, so it looks like the insider buying might be taking advantage of the recent price drop.
Sanders Morris Harris Group, Inc., (SMHG) is trading around $8.34. SMHG is a investment brokerage company based in Texas. These shares have traded in a range between $4.89 to $8.36 in the last 52 weeks. The 50 day moving average is $7.11 and the 200 day moving average is $6.26. SMHG is estimated to earn about 49 cents per share in 2011. You can see the insider buying here:
What Sanders Morris insiders and other investors might be seeing: Sanders pays a solid dividend of 20 cents per share which is equivalent to a yield of 2.9%. Analysts see earnings estimates for SMHG rising from 49 cents to about 60 cents in 2012. The book value is $7.65. These shares have risen since the insider buying, so I would wait for a pullback if you want to buy shares in this company.
Ladenburg Thalmann Financial (NYSEMKT:LTS) shares are trading at $1.17. LTS is a investment brokerage company, based in Florida. These shares have traded in a range between 80 cents to $1.74 in the last 52 weeks. The 50 day moving average is $1.07 and the 200 day moving average is $1.16. Earnings estimates are not available. You can see the insider buying here: http://www.insidercow.com/history/company.jsp?company=lts
What Ladenburg insiders and other investors might be seeing: LTS reported that fourth quarter 2010 revenues were $54.6 million, a 25% increase from revenues of $43.8 million in the fourth quarter of 2009. The company still reported a net loss of 6 cents per share for 2010, but with revenues rising, it could be possible for LTS to post a profit in the future.
Invesco Mortgage Capital, Inc. (NYSE:IVR) is trading around $21.61. Invesco is a mortgage real estate investment trust. The 50 day moving average is $21.95 and the 200 day moving average is $20.10. These shares have traded in a range between $17.22 to $24.07 in the last 52 weeks. You can see the repeated insider buying here: http://www.insidercow.com/history/company.jsp;jsessionid=33986373C440A54F46BED8D12779B9CC?company=IVR
What Invesco insiders and other investors might be seeing: IVR pays a dividend of $4 which is equivalent to a 18.8% yield. The book value is $20.44. These shares were trading for about $24 in January, but the company announced a secondary offering that caused the stock to drop. You can read about the offering here: http://finance.yahoo.com/news/Invesco-Mortgage-Capital-Inc-prnews-3969384954.html?x=0&.v=1
KKR Financial (KFN) is trading around $9.92. KKR Financial is a specialty finance company. The 50 day moving average is $9.75 and the 200 day moving average is $8.74. These shares have traded in a range between $7.01 to $10.60 in the last 52 weeks. You can see the repeated insider buying here: http://www.insidercow.com/history/company.jsp;jsessionid=33986373C440A54F46BED8D12779B9CC?company=KFN
What KKR insiders and other investors might be seeing: KFN pays a dividend of 60 cents which is equivalent to a 6.6% yield. The book value is $9.31 so the shares look like a good value from that metric as well.
The data is sourced from Yahoo Finance and Insidercow.com. The information and data is believed to be accurate, but no guarantees or representations are made. Rougemont is not a registered investment advisor and does not provide specific investment advice. The information contained herein is for informational purposes only.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.