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One helpful way to gauge cash flows is by using the ratio operating cash flow/common equity. This standardizes the number to compare firms of different sizes, with increases in the ratio indicating a higher cash return to stockholders’ investment.

We used this ratio to screen for stocks with high cash flow growth, comparing the trailing-twelve-month operating cash flow/common equity to the company’s five-year average. We then screened for those companies that have also seen significant net insider buying over the last six months.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.


We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.



Do you think insiders are calling it right on these names? Use this list as a starting-off point for your own analysis.

List sorted by net insider buying over the last six months.

1. Central Pacific Financial Corp. (NYSE:CPF): Regional Banks Industry. Market cap of $542.20M. TTM operating cash flow/common equity at 0.86 vs. 5-year average at 0.34. Net insider purchases over the last six months at 515.50K, which is 2.33% of the company's 22.16M share float. The stock has lost 56.7% over the last year.

2. Genomic Health Inc. (NASDAQ:GHDX):
Medical Laboratories & Research Industry. Market cap of $796.73M. TTM operating cash flow/common equity at 0.28 vs. 5-year average at -0.04. Net insider purchases over the last six months at 554.75K, which is 2.09% of the company's 26.51M share float. The stock is a short squeeze candidate, with a short float at 10.04% (equivalent to 26.07 days of average volume). The stock has gained 122.02% over the last year.

3. ITT Educational Services Inc. (NYSE:ESI):
Education & Training Services Industry. Market cap of $2.54B. TTM operating cash flow/common equity at 4.93 vs. 5-year average at 1.90. Net insider purchases over the last six months at 374.00K, which is 1.68% of the company's 22.29M share float. The stock is a short squeeze candidate, with a short float at 29.05% (equivalent to 9.17 days of average volume). The stock has had a couple of great days, gaining 5.4% over the last week.

4. Entercom Communications Corp. (NYSE:ETM):
Broadcasting Industry. Market cap of $308.35M. TTM operating cash flow/common equity at 0.63 vs. 5-year average at 0.22. Net insider purchases over the last six months at 37.20K, which is 0.19% of the company's 19.10M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.69). Might be undervalued at current levels, with a PEG ratio at 0.87, and P/FCF ratio at 3.83. The stock is a short squeeze candidate, with a short float at 13.38% (equivalent to 15.47 days of average volume). It's been a rough couple of days for the stock, losing 6.84% over the last week.

*Insider data sourced from Yahoo! Finance, operating cash flow/common equity data sourced from Screener.co, all other data sourced from Finviz.

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

Source: 4 High Cash-Flow Growth Stocks Being Snapped Up by Insiders