Seeking Alpha
Profile| Send Message| ()  
Each week I highlight large purchases made by CEOs on the open market. This week, we have 7 stocks with significant CEO buys. Each one of these CEOs bought in the vicinity of nearly $100,000 of their own company’s shares.
CEO purchases, and other management purchases, are a better indicator than director purchases because managers carry out the day-to-day activities and have a better understanding of potential catalysts. This list should be used to generate ideas for more research. Insider buying alone shouldn’t be enough of a reason to buy shares. However, if management is bullish on the stock and the fundamentals indicate the stock is cheap or a surprise upside in the numbers may be coming, one of these stocks may be attractive.
The 7 stocks with significant CEO buys in the past week are below:
Kayne Anderson MLP Investment Company (KYN): CEO Kevin McCarthy participated in a secondary offering on April 5 along with Executive Vice President James Baker. McCarthy bought 10,000 shares at $30.58. He owns 63,415 shares in total. Kayne Anderson is a closed end fund focused on the energy sectors and master limited partnerships. KYN’s Q1 distribution will be $0.49/share, which would put an annual yield of over 6% on the stock.
Conn’s (CONN): Conn’s recently announced that Theodore Wright would act as interim CEO after Timothy Frank stepped down. The company has announced that it will begin a search for a permanent replacement. In response to this appointment, Wright purchased $96,800 of company shares on April 4. Conn’s is a specialty retailer that sells items such as appliances, electronics, and furniture. They finance 61% of their transactions, which has hurt the company in recent years.
Aegerion Pharmaceuticals (AEGR): Aegerion’s CEO, Michael Beer, bought $99,700 worth of shares on April 4. Aegerion went public in October at $9.50. The IPO was expected to be priced much higher, and now trades at levels where the offering was originally expected to be. The company’s primary product is a drug called Lomitapide. Lomitapide was given orphan drug status by the FDA in mid-March, which provides incentives for drugs that provide treatment to diseases that affect fewer than 200,000 people in the United States. The drug is in late stage testing and is designed to treat people with sever lipid disorders.
Rexahn Pharmaceuticals (RNN): CEO Chang Ho Ahn bought $391,400 of company shares on April 1. Rexahn is developing drugs to treat cancer, CNS disorders, and sexual dysfunctions.
Comtech Telecommunications (CMTL): Comtech operates within three segments: Telecommunications Transmissions, Mobile Data Communications, and RF Microwave Amplifiers. The company has $21/share of cash and no debt. Shares are trading around $29. CEO Fred Kornberg thinks shares are attractive and purchased $275,600 worth of shares on March 31. If you back out the cash and consider their EPS of $2.68 over the last 12 months, shares are very attractively priced and the company deserves more research.
China TransInfo Technology (CTFO): CTFO is a Chinese technology company that focuses on transportation planning, toll collection, taxi monitoring and other related applications. CEO Xia Shudong has been buying shares regularly since late February. He bought another $122,468 worth of shares between March 30 and April 1. He now owns a total of 266,600 shares.
Golub Capital BDC (GBDC): CEO David Golub participated in a $55 million equity offering on April 1, joining chairman Lawrence Golub and another director. David Golub bought $2 million of shares. The offering price was $15.75. Golub Capital is a business development company, which is like a publicly traded private equity firm. A large portion of earnings are generally paid out, and equity offerings are used to make new investments. The payout last quarter was $0.32.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Source: 7 Stocks With CEO Buys of at Least $96,000 in the Past Week