This past week saw so many insider buys that I had to break up the CFO list into market cap sizes. This edition features three midcap stocks and one large cap stock. I prefer to look at CEO and CFO insider purchases more than others. These two positions have a unique and close view of the companies they work for and should know better than other any potential catalysts or problems. While these insiders may fall victim to the same emotion as other investors, they only put their personal money into shares if they think they’ll make money from it. Each stock deserves a closer look.
eBay (EBAY): CFO Robert Swan bought 3,380 shares on August 10 at an average purchase price of 29.56. This is the first insider buy on the open market that I’ve seen for eBay in a year and a half. While insiders may not be buyers (although they’re still receiving options), big investors like Leon Cooperman, Daniel Loeb, and John Griffin own a significant number of shares. The stock seems about fairly valued right now.
Everest Re Group (RE): Everest Re is an insurer that I highlighted back in January of this year. Shares are lower today than what they traded at then despite a higher book value. Shares trade at a price to book ratio of 0.7. Their historical ratio is more like double that. Famous investors Mason Hawkins, Chris Davis, and Donald Smith are big holders of the stock. CFO Dominic Addesso seems to think shares are cheap. He bought 1,000 shares on August 9 for $75.55 per share. Shares yield 2.4% and the company has been buying back shares over the past year.
Nielsen Holdings (NLSN): CFO Brian West bought 1,000 company shares on August 9 at an average purchase price of $26.70. West owns more than 79,000 shares in total. Nielsen Holdings is a market research company doing business in more than 100 countries. They run the eponymous Nielsen Ratings. The company has a $9.7 billion market cap and trades just a few dollars above its January IPO price.
Cadence Design Systems (CDNS): The CEO and CFO at Cadence have been busy buyers of the stock. Most recently CFO Geoffrey Ribar bought 5,000 shares on August 8 at an average price of $8.80. Ribar had bought shares the week before as well. Cadence Design is an electronic design automation company with a $2.4 billion market cap. Shares trade for a lower price than most of the insiders paid for the stock throughout this year.