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Why do insiders purchase shares of their companies? As Peter Lynch pointed out in his book, One Up On Wall Street, insiders sell for various reasons, which is usually not very informative unless they are dumping shares like there is no tomorrow. Insiders buy for one reason: they are signaling that they have confidence in the company's future performance. Insiders, especially executives and directors of companies tend to know their company very well. Tracking their stock purchase activities is a very good point to start for lucrative returns.

This article analyzes insider purchase activities when they buy at least $1,000,000 worth of shares during the past week, filed at the Securities and Exchange Commission. I have written a short analysis of each company. However, these are not buying and selling recommendations. Of course, insiders could be wrong. It is nevertheless a good starting point to add those stocks to a watch list.

Bank of America Corporation (BAC) is a financial company, specifically in the industry of regional - mid-Atlantic banks. It has a market cap of $85,140.00 million. Its stock closed at $7.84 per share last Friday. Over the past week, Bank of America has 2 insiders who purchased a total of 490,239 shares at the total value of $3,607,339. Multiple insider purchase occasions are usually a positive sign. Low recent trading volume can be negative or positive. It can be negative because it will be difficult for people to discover this company. It can be positive because ignored stocks tend to be undervalued. What to do: I don't think the company's overall financial record to be very solid.

Cracker Barrel Old Country Store, Inc. (CBRL) is a services company, specifically in the industry of restaurants. It has a market cap of $1,390.00 million. Its stock closed at $59.91 per share last Friday. Over the past week, Cracker Barrel Old Country Store had one insider who purchased a total of 46,800 shares at the total value of $2,787,844. Its stock price is about 3.20% below its 52-week high, usually a positive technical indicator on the company. Low recent trading volume can be negative or positive. It can be negative because it will be difficult for people to discover this company. It can be positive because ignored stocks tend to be undervalued. My thoughts: I don't think the company's overall financial record to be very solid.

Dollar Thrifty Automotive Group Inc. (DTG) is a services company, specifically in the industry of rental and leasing services. It has a market cap of $2,280.00 million. Its stock closed at $81.24 per share last Friday. Over the past week, Dollar Thrifty Automotive Group had one insider who purchased a total of 28,000 shares at the total value of $2,224,993. Its stock price is about 3.15% below its 52-week high, usually a positive technical indicator on the company. Based on its PEG ratio of 0.54, the stock appears undervalued. Dollar Thrifty Automotive Group Inc. has a very healthy operating margin of 24.07%. The recent trading volume is below average. The final words: I would put this company on my watch list.

Granite City Food and Brewery Ltd. (OTCPK:GCFB) is a services company, specifically in the industry of restaurants. It has a market cap of $10.24 million. Its stock closed at $2.23 per share last Friday. Over the past week, Granite City Food and Brewery Ltd. has 4 insiders who purchased a total of 12,500,000 shares at the total value of $26,000,000. Multiple insider purchase occasions are usually a positive sign. The shares purchased account for 253.91% of the company's market cap. The company is currently losing money operationally. Its business has to turnaround for the situation to become more positive. The trading volume has been consolidating recently. The conclusion: I don't think the company's overall financial record to be very solid.

Isramco Inc. (ISRL) is a basic materials company, specifically in the industry of independent oil and gas. It has a market cap of $242.57 million. Its stock closed at $89.27 per share last Friday. Over the past week, Isramco had one insider who purchased a total of 18,133 shares at the total value of $1,601,077. Given that its price is only 8.76% lower than its 52-week high, the overall market sentiment appears positive. Thinning trading volume suggests that trading interest in the company is waning. My thoughts: I would not buy the stock at this point.

Navistar International Corporation (NAV) is a consumer goods company, specifically in the industry of trucks and other vehicles. It has a market cap of $2050.00 million. Its stock closed at $29.94 per share last Friday. Over the past week, Navistar International has 2 insiders who purchased a total of 1,043,200 shares at the total value of $26,019,008. Multiple insider purchase occasions are usually a positive sign. The shares purchased account for 1.27% of the company's market cap. Over the past ten days, Navistar International has seen significantly higher than average trading volume. In conclusion: The company appears attractive.

Providence Service Corp. (PRSC) is a healthcare company, specifically in the industry of specialized health services. It has a market cap of $177.15 million. Its stock closed at $13.63 per share last Friday. Over the past week, Providence Service had one insider who purchased a total of 132,828 shares at the total value of $1,840,508. The shares purchased account for 1.04% of the company's market cap. Given that its price is only 14.49% lower than its 52-week high, the overall market sentiment appears positive. Thinning trading volume suggests that trading interest in the company is waning. My conclusion: I'd avoid this company at this price level.

Stone Energy Corp. (SGY) is a basic materials company, specifically in the industry of independent oil and gas. It has a market cap of $1,200.00 million. Its stock closed at $24.54 per share last Friday. Over the past week, Stone Energy had one insider who purchased a total of 20,000 shares at the total value of $2,060,000. I like Stone Energy's operating margin of 36.74%, a good sign for the company's financial health. The trading volume has been consolidating recently. In summary: A lot of caution should be used while watching new progress.

Tempur Pedic International Inc. (TPX) is a consumer goods company, specifically in the industry of home furnishings and fixtures. It has a market cap of $1540.00 million. Its stock closed at $23.99 per share last Friday. Over the past week, Tempur Pedic International had one insider who purchased a total of 112,000 shares at the total value of $2,808,960. Its price is near the bottom, at around 13.97% off its 52-week low. I like this company with an undervalued stock, reflected in a low PEG ratio. Tempur Pedic International Inc. has a very healthy operating margin of 23.79%. Over the past ten days, Tempur Pedic International has seen significantly higher than average trading volume. My conclusion: The company appears attractive.

VMware, Inc. (VMW) is a technology company, specifically in the industry of technical and system software. It has a market cap of $38890.00 million. Its stock closed at $91.15 per share last Friday. Over the past week, VMware had one insider who purchased a total of 74,900 shares at the total value of $6,994,794. I like VMware's operating margin of 20.08%, a good sign for the company's financial health. Recently, the stock is not traded actively. My conclusion: I would not buy the stock at this point.

Source: Million Dollar Insider Buys Last Week