Insiders made noteworthy buys (see definition below) in five finance and industrial sector stocks this past week (May 21st to 25th, 2012), and sold four others. These were selected based on a review of over 1,600 separate SEC Form 4 (insider trading) filings last week, as part of our daily and weekly coverage of insider trades. The filings are noteworthy based on the dollar amount sold, the number of insiders buying or 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):
Blackrock Inc. (BLK): BLK is one of the largest investment management firms in the U.S., and manages fixed income, cash, equity and alternative investment products for institutional and individual investors. On Thursday, two insiders filed SEC Forms 4 indicating that they purchased 53,000 shares for $8.5 million, with the large majority of 50,000 shares purchased by Director James Grosfeld. In comparison, insiders purchased 26,452 shares in the past year.
In its latest Q1 (March) that BLK reported in mid-April, revenues came in-line and it beat analyst earnings estimates ($3.16 v/s $3.02), while long-term assets under management rose 7% to $3.345 trillion. Its shares are currently trading near the middle of their 52-week range, down 4% YTD, at 11-12 forward P/E and 1.2 P/B compared to averages of 12.1 and 2.8 for its peers in the investment management group.
Besides BLK, insiders also made purchases in the following four other industrial and financial stocks:
- Sinclair Broadcasting Group (SBGI), a TV broadcasting company that owns or provides programming, operating or sales services to TV stations and other commercial broadcasting groups in the U.S., in which President David Smith purchased 40,000 shares for $0.34 million, in comparison to insiders purchasing 0.15 million shares in the past two years;
- AES Corp. (AES), that is a global power company operating in North America, Latin America, Europe, Asia and the Middle East, in which COO of Utilities Andrew Vesey purchased 8,400 shares for $100,632, in comparison to 74,257 shares purchased by insiders in the past two years;
- AFLAC Inc. (AFL), that is a provider of health, accident, disability and life insurance in the U.S. and Japan, in which SVP Eric Kirsch purchased 1,875 shares for $73,897, in comparison to 16,875 shares purchased by insiders in the past two years; and
- Public Service Enterprise Group Inc. (PEG), a holding company providing utility services in the northeastern and mid-Atlantic U.S., in which Director Caroline Dorsa purchased 1,700 shares for $52,592, in comparison to 3,700 shares purchased by insiders in the past two years.
On top of these, insiders also reported noteworthy sales last week in the financial and industrial sectors in:
- Visa (V), that provides a global retail electronic payments network in support of the credit and debit payment programs of financial institutions, in which four insiders filed SEC Forms 4 indicating that they sold 0.36 million shares for $41.1 million (part of the shares sold came from the exercise of options), in comparison to 0.97 million shares sold by insiders in the past two years;
- Ventas Inc. (VTR), that is a publicly-owned real estate investment trust (REIT) that engages in the investment, management, financing and leasing of hospitals, skilled nursing facilities, senior housing facilities, medical office buildings, and other healthcare related facilities in the U.S. and Canada, in which two insiders filed SEC Forms 4 indicating that they exercised options and sold the resulting 173,617 shares for $10.1 million, in comparison to 0.94 million shares sold by corporate insiders in the past two years;
- CSX Corp. (CSX), that operates a 21,000 mile rail system in 23 states, the District of Columbia and the Canadian provinces of Ontario and Quebec, and also offers services for the transport of intermodal containers and trainers, in which Chairman & CEO Michael Ward filed SEC Form 4 indicating that he sold 300,000 shares for $6.2 million, in comparison to 0.64 million shares sold by insiders in the past year; and
- Cummins Inc. (CMI), that manufactures diesel and natural gas engines, electric power generation systems and engine-related component products for OEMs worldwide, in which two insiders filed SEC Forms 4 indicating that they 11,700 shares for $1.2 million, in comparison to 87,729 shares sold by insiders in the past year.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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