Significant insider ownership is not an indication that a stock will outperform S&P by any means, but is a positive sign that executives have a strong confidence in their company’s growth prospects. One noteworthy example is when Aubrey McClendon, CEO of Chesapeake Energy Corp. (CHK), appeared on Jim Cramer’s Mad Money show few years back, reiterating his company’s strong valuations. He owned less than 3 million shares at the time, but now his holdings amount to roughly $90.5 million. After his appearance and optimistic outlook on natural gas, the stock has fallen substantially, leaving the CEO in a tough spot.
Large insider ownership is great, but it doesn't necessarily shield a stock from systematic risk or, in Chesapeake's case, crude prices. Here are top ten stocks with PEG ratios less than 1.0 and insider ownership of at least 30% that you should keep an eye on.
Large insider ownership is great, but it doesn't necessarily shield a stock from systematic risk or, in Chesapeake's case, crude prices. Here are top ten stocks with PEG ratios less than 1.0 and insider ownership of at least 30% that you should keep an eye on.
| Company Name | Insider Ownership | Market Cap. | PEG | Average Volume |
|---|---|---|---|---|
| Elster Group SE (ELT) | 83.50% | $1.91B | 0.91 | 174,270 |
| Lone Pine Resources Inc. (LPR) | 82.39% | $690.28M | 0.03 | 143,270 |
| Cninsure Inc. (CISG) | 74.29% | $348.61M | 0.19 | 503,900 |
| Safe Bulkers, Inc. (SB) | 69.54% | $468.52M | 0.92 | 134,530 |
| FBL Financial Group Inc (FFG) | 51.55% | $800.79M | 0.76 | 72,130 |
| Brookfield Properties Corp. (BPO) | 49.72% | $7.65B | 0.85 | 2,320,000 |
| Quicksilver Resources Inc. (KWK) | 44.99% | $1.48B | 0.82 | 3,930,000 |
| NXP Semiconductors NV (NXPI) | 38.47% | $4.26B | 0.24 | 2,020,000 |
| Royal Caribbean Cruises (RCL) | 37.02% | $5.25B | 0.69 | 3,380,000 |
| Western Refining Inc. (WNR) | 36.79% | $1.30B | 0.34 | 3,590,000 |
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
