With all of the tumult in the markets over the past few weeks, and especially in the past few days, it’s interesting to see insider buying pick up. This week’s edition of the CEO and CFO insider buys is full of large purchases, indicating that these individuals are confident in their own company’s prospects. For the ten recent CFO buys of at least $47,000, see below:
Molson Coors Brewing Company (TAP): CFO Stewart Glendinning bought 3,000 shares on August 5th at an average price of $41.82. The total purchase was worth about $125,000. This was his second major purchase this year. I had earlier highlighted his March 11 buy. Back then shares were cheap. They’re even cheaper now with a P/E lower than 12 and a dividend yield above 3%.
Affymetrix (AFFX): Affymetrix is a $336 million market cap genetic analysis technology company. CFO Timothy Barabe bought 10,000 shares on August 4 at $4.75 for a total transaction of $47,500. Adjusted Return recently wrote an article about the company and suggested shares were still a bit too rich.
Cadence Design Systems (CDNS): CFO Geoffrey Ribar has been buying company stock throughout 2011. His most recent purchase was on August 4 for 5,000 shares. He bought those shares at $9.61. Ribar has been joined by the CEO, who has also made numerous purchases. Cadence Design is an electronic design automation company that helps semiconductor designers and manufacturers effectively reach their goals.
Republic Services (RSG): Republic Services shares are at 52 week lows. Though their P/E ratio is a tad higher than their historical average, the dividend yield is a healthy 3.3%. CFO Tod Holmes bought 3,000 shares on August for at $27.68. He currently owns nearly 78,000 shares.
Morgan Stanley (MS): As I mentioned in my article highlighting recent CEO buys, there seemed to be a coordinated effort by Morgan Stanley executives to show the investment community that shares were cheap. Five insiders made purchases in the past week including CFO Ruth Porat. Porat bought 25,000 shares on August 5th at an average price of $20.50. Morgan Stanley is one of the largest holdings of mutual fund star Bruce Berkowitz.
The Cheesecake Factory (CAKE): CFO Doug Benn bought 3,000 shares at an average price of $27.91 on August 3. Shares of this restaurant have dropped about 13% since they announced earnings on July 21 though earnings have risen and same-store sales have stabilized.
Apollo Residential Mortgage (AMTG): Apollo Residential had its IPO on July 21 at $20 per share. The CEO bought $1 million worth of shares at the IPO, but CFO Stuart Rothstein skipped the IPO. Instead Rothstein bought 5,000 shares on August 3 for $18.10.
Cincinnati Financial Corp. (CINF): CFO Michael Sewell bought 16,500 shares between July 29 and August 1. The average purchase price was $27.51 and the total transaction was about $455,000. This $4.2 billion market cap insurer announced earnings on July 27. Although they beat on the bottom line (while showing a loss), they missed on the top line by a considerable amount. The price to book is 0.8.The dividend yield is above 6%, but be careful. The payout ratio is extremely high right now.
Celgene (CELG): CFO Jacqualyn Fouse bought 2,000 shares on August 1 for $59.47. This is her second major purchase this year. I highlighted her earlier purchase a few months ago at prices higher than today.
Webster Financial Corp. (WBS): Webster Financial is a $1.6 billion Connecticut-based regional bank. CFO Glenn MacInnes bought 15,000 shares on July 29 at an average price of $20.67. The total transaction was more than $310,000. Price to book is 0.9, which is significantly lower than Webster’s historical price to book. Like a lot of financials, Webster suffered through the financial crisis, but they seem to be well-capitalized now.