Insiders made noteworthy buys and sells in many stocks last week, the bulk of which were covered in our prior articles on the basic materials sector, energy sector, healthcare sector, technology sector, consumer and retail sectors and the financial sector. In this article, we detail one noteworthy buy and six noteworthy sells last week, mostly in sectors not covered in the prior articles mentioned above, including the industrial, transportation and utility sectors. 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 our instablog discussion on insider trading):
JB Hunt Transport Services Inc. (JBHT): JBHT is a diversified transportation services and logistics provider, operating in intermodal, dedicated contract services, full-load dry-van and integrated capacity solutions segments. Last week, seven insiders filed SEC Forms 4 indicating that they sold 119,175 shares for $6.5 million, with all but 2,320 of the shares sold having been acquired from the exercise of options. The largest seller was Chairman of the Board James Thompson who exercised options to acquire 57,792 shares and sold 48,500 of those shares for $2.6 million, with the remaining 8,875 shares transferred pursuant to a divorce and confidential property settlement. In comparison, insiders sold 1.26 million shares in the past year.
JBHT shares have been among the strongest performers in the trucking group, up over 20% YTD, and trading at 18-19 forward P/E and 10.2 P/B compared to averages of 13.7 and 3.0 for its peers in the trucking group, while earnings are projected to rise strongly at a 19.7% annual rate from $2.13 in 2011 to $3.05 in 2013. In its latest Q1 (March) reported almost two months ago, the company beat analyst revenue and earnings estimates (57c v/s 51c), buoyed by a strong domestic freight environment and increasing demand for its intermodal transportation services. The company trades not only at a premium valuation to the group, but also at the high end of its own historical P/E trading range that has varied approximately between 12 and 30. However, analysts continue to be generally positive on the company, with 14 of the 28 analysts that cover it rating it at buy/strong buy, 13 at hold, and only one at underperform, with a mean price target of $60, above current prices in the $55 range.
In addition to JBHT, noteworthy insider sales reported this past week included the following, the first five of which have also had strong surging prices:
- a $4.3 million sale by SVP Louis Stellato at The Sherwin-Williams Co. (SHW), a manufacturer, distributor and retailer of paints, coatings, and related products to professional, industrial, commercial and retail customers worldwide;
- a $1.8 million sale by EVP Suzanne Shema at Onyx Pharmaceuticals Inc. (ONXX), a biotech company engaged in the development of small molecule drugs designed to target mechanisms that cause cancer cell proliferation and angiogenesis;
- a $1.3 million sale by three insiders at Seattle Genetics Inc. (SGEN), a biotech company focused on the development of monoclonal antibody-based therapeutics for the treatment of cancer and autoimmune diseases;
- a $1.0 million sale by EVP & General Counsel Javade Chaudhri at Sempra Energy (SRE), a holding company engaged in natural gas and electric utility services; and
- a $1.4 million sale by two insiders at InvenSense Inc. (INVN), a provider of micro-electro-mechanical systems gyroscopes for motion processing solutions in consumers electronics, including video game devices, handsets and tablet devices, digital still and video cameras, digital television and set-top box remote controls, 3D mice, portable navigation devices, and household consumer and industrial devices.
On top of these, a noteworthy insider buy last week included the one at Terex Corp. (TEX), a global manufacturer of a broad range of construction and mining related capital equipment, in which Director David Sachs purchased 5,000 shares for $77,250, increasing his holdings to just under 0.4 million shares in direct and indirect shares, and in comparison to insiders purchasing 69,232 shares in the past two years.
Credit: Fundamental data in this article and company descriptions are based on SEC filings, Zacks Investment Research, Yahoo, Thomson Reuters and Briefing.com. The information and data is believed to be accurate, but no guarantees or representations are made.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Disclaimer: Material presented here is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. Further, these are our 'opinions' and we may be wrong. We may have positions in securities mentioned in this article. You should take this into consideration before acting on any advice given in this article. If this makes you uncomfortable, then do not listen to our thoughts and opinions. The contents of this article do not take into consideration your individual investment objectives so consult with your own financial adviser before making an investment decision. Investing includes certain risks including loss of principal.