Analyzing Friday's Noteworthy Insider Buys And Sells

by: GuruFundPicks

Insiders reported on Friday that they bought and sold stock in over 230 separate transactions in over 130 different companies. These transactions have to be reported within two days of the trade, so the transactions occurred sometime earlier this week. We culled through these 230 or so insider buys and sells (based on SEC Forms 3, 4, and 5 filings), as part of our daily and weekly coverage of insider trades, and present here the most notable trades reported on Friday; notable based on the dollar amount sold, the number of insiders selling, and based on whether the overall buying or selling represents a strong pick-up based on historical buying and selling in the stock (for more info on how to interpret insider trades, please refer to the end of this article):

Delta Air Lines Inc. (NYSE:DAL) provides international and domestic passenger and cargo transportation in the U.S. and abroad, offering services to 357 destinations in 66 countries. On Friday, two insiders, CFO Hank Halter (20,000 shares) EVP Glen Hauenstein (50,904), filed SEC Forms 4, indicating that they sold a total of 70,904 shares for $0.74 million. Overall, insiders sold a total of 170,904 shares in the past three months, and 0.52 million shares during the past year. DAL recently reported a stellar Q4 last week, up 11.0% for the week, during a week that saw multiple airlines report great quarters and the airline sector as a whole up by 10.8%. Even after last week's great ride up, DAL still trades at a very attractive discount of less than 4 forward P/E and 7.0 P/B compared to averages of over 11.0 and 1.6 for its peers in the airline group.

US Bancorp (NYSE:USB): USB is a super-regional financial services holding company, operating full-service branch offices and ATMs, and providing a full range of banking and financial services including brokerage, insurance, investment, mortgage, trust and payment services to individuals, institutions, and corporations. On Friday, Vice Chairman Joseph Hoesley filed SEC Form 4 indicating that he purchased 1,500 Series F Preferred Stock Depositary Shares for over $38,000. Also, earlier in the week, on Tuesday, EVP Lee Mitau filed SEC Form 4 indicating that he too purchased 1,500 Series F Preferred Stock Depositary Shares for over $38,000, so that insiders purchased a total of 3,000 such shares in the past week. USB is undervalued, trading at a current 11.7 P/E on a TTM basis, and at 1.7 P/B, compared to the averages of 17.5 and 1.6 respectively for its peers among Midwest regional banks.

EMC Corp. (EMC): EMC develops, delivers and supports information and virtual infrastructure technologies and solutions, and offers enterprise storage systems and software, which are deployed in storage area networks (NYSE:SAN) and network attached storage (NAS). On Friday, three insiders, COO of EMC Information Infrastructure & Cloud Services Howard Elias (49,611 shares), CFO David Goulden (65,000 shares), and EVP & General Counsel Paul Dacier (50,000 shares), filed SEC Forms 4 indicating that they sold a total of 164,611 shares for $4.2 million, with 125,000 of those shares from the exercise of options. Overall, insiders sold a total of 0.47 million shares in the past three months, and 3.25 million shares in the past year. EMC last week reported a stellar quarter in which it beat revenue and earnings estimates, and ended up 11.1% for the week. Its shares currently trade at 13-14 forward P/E and 2.8 P/B compared to averages of 27.0 and 2.4 for its peers in the computer storage devices group, while earnings are projected to grow at 13.9% annual rate from $1.51 in 2011 to $1.96 in 2013.

DuPont De Nemours & Co. (NYSE:DD): DD manufactures agricultural, food, building, communications, construction, electronics and other products and raw materials. On Friday, Director Bertrand Collomb filed SEC Form 4 indicating that he purchased 5,290 shares for $0.27 million, ending with 19,937 shares after the purchase. This is significant in that it is a moderately large purchase, and it is the only one this year; in fact, the last time insiders purchased was in March of 2010. DD reported its Q4 last week in which it beat earnings and missed slightly on revenues; currently, its shares trades at 10-11 forward P/E and 5.6 P/B compared to averages of 10.8 and 2.6 for the diversified chemicals group.

Emulex Corp. (NYSE:ELX): ELX is a leader in converged networking solutions, providing enterprise-class connectivity for servers, networks and storage devices within the data center. On Friday, two insiders, SVP of Operations John Warwick (8,214 shares) and Director Paul Folino (21,800 shares), filed SEC Forms 4 indicating the they sold a total of 30,014 shares for $0.28 million, with SVP Warwick selling his shares pursuant to a 10b5-1 plan. In comparison, insiders sold no additional shares in the past three months, and they sold a total of 0.16 million shares in the past year. ELX shares have been among the best performers in tech this month, up over 55% so far this month, after first pre-announcing on January 9th and then reporting on January 26th a stellar Q2 (ending December 2011) in which revenue beat estimates and also earnings doubled quarter-over-quarter to 26c. The stock currently trades at a current 16.4 P/E on a TTM basis, and at 1.4 P/B, compared to averages of 20.9 and 2.1 for its peers in the computer networks group.

Monster Worldwide Inc. (NYSE:MWW): MWW is the parent company of, the premier online employment solution for people seeks jobs and employees that need great people. On Friday, Chairman & CEO Salvatore Iannuzzi filed SEC Form 4 indicating that he purchased 15,000 shares for $107,100, increasing his holdings to 1.48 million shares. MWW shares retreated last week, down 18.3% for the week, after the company reported a disappointing Q4 on Thursday in which it missed on both analyst revenue and earnings estimates, and lowered guidance; its shares currently trade at 11 forward P/E and 0.7 P/B compared to averages of 46.7 and 3.6 for its peers in the internet services group.

On top of these, some additional large insider trades last week included a $147.2 million sale by co-Founder and Director William Gates at Microsoft Corp. (NASDAQ:MSFT), pursuant to a 10b5-1 plan, in addition to a $151.2 million sale on Thursday by Mr. Gates and two other insiders; a $1.4 million sale by SVP & GM Christian Henry, pursuant to a 10b5-1 plan, at Illumina Inc. (NASDAQ:ILMN), a developer of integrated systems for the large-scale analysis of genetic variation and biological function; a $1.3 million sale by two insiders, Vice Chairman Steven Altman and Chairman & CEO Paul Jacobs, pursuant to 10b5-1 plans, at Qualcomm Inc. (NASDAQ:QCOM), a designer of CDMA-based, RF, and power management IC's for system software used in wireless handsets, modem cards, and networks; a $2.2 million sale by Director Robert Finocchio at fabless semiconductor company Altera Corp. (NASDAQ:ALTR); a $3.6 million sale by CTO Kevin Lynch at diversified software company Adobe Systems Inc. (NASDAQ:ADBE) that offers a line of creative, business, Web and mobile software and services; and a $9.7 million sale by Chief Innovation and Branding Officer Dennis (Chip) Wilson, pursuant to a 10b5-1 plan, at Lululemon Athletica (NASDAQ:LULU), an operator and franchiser of yoga inspired athletic apparel stores for women, men and female youth in North America and Australia.

Credit: Fundamental data in this article were based on SEC filings, I-Metrix® by Edgar Online®, Zacks Investment Research, Thomson Reuters and The information and data is believed to be accurate, but no guarantees or representations are made.

Disclosure: I am long DAL.

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