Insider executives have an inside track on what is happening with a company. Sometimes, these take the form of hedge fund managers that have bought positions sizable enough to earn them a more involved stake than other investors would get; other times it is a vice president or a departmental director that gets the chance to profit on something forthcoming. Keeping an eye on insider executive purchases is usually a good sign of upcoming changes.
After taking a look at the SEC filings for October 3, 2011, 5 stocks garnered attention. It seems these insiders made a good choice. Not only did the stock value increase, but each increased enough for its investor to earn a tidy sum over the last week.
Apache Corp (APA) is an independent energy company that explores, develops and refines crude oil and natural gas. Jon A. Jeppesen, the executive vice president, invested over $405,000 in the company when he bought 5,000 shares at $81.08 each. APA rose from $82.43 at open to $86.23 at close, an increase of over 4%. The company also has a dividend yield of .70% and a price to earnings ratio of just 8.70. Considering that Jeppesen just bought the stockless than 48 hours ago, he made $25,750 in two days.
Owens-Illinois, Inc. (OI) makes glass packaging products for alcoholic beverages, food, tea, juice and pharmaceuticals. David H. Y. Ho, a director at the company, bought 1,210 shares on Wednesday, October 5. He paid $14.67 a share, for a total investment of $17,751. The investment may be small, but since his purchase, Ho has made more than $1,900, or a return over 10%. Another director at OI, Helge Wehmeier, also bought stock in the company on October 5, buying 1,809 shares at $14.67. After the stock closed on Thursday at $16.25, Wehmeier made over $2,800 on the position.
Kronos Worldwide, Inc. (KRO) is a global manufacturer of titanium dioxide products. Senior Vice President of Development Douglas C. Weaver bought 3,280 shares at $15.19 a share on October 3, 2011, for a total investment just under $50,000. KRO closed the market on Thursday, October 6, at $19 a share, netting a gain of approximately $12,500 in three days – a return of 25%.
Compx International, Inc. (CIX) is worldwide manufacturing company that produces everything from locks to the slides in filing cabinets, flat screen mounts to boat gauges. Harold C. Simmons, a 10% owner in the company, bought 2,588 shares in the company on October 3, 2011 at $12.50 a share. CIX was trading at $13.78 a share at the close of business on Thursday, October 6, meaning a gain of over $3,300, approximately a 10% return.
SandRidge Energy, Inc. (SD) is an oil exploration and production company. Its director, Roy T. Oliver Jr., bought 100,000 shares in the company at $5.93 a share. At close of business on October 6, SD was trading at $6.14 a share, earning Oliver a profit of $21,000. Oliver bought in SD on September 29, 2011. He reported his purchase on October 3.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.