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Small cap companies are usually not followed by analysts, which makes choosing the right small-cap (market cap < $2 billion) more difficult. Choosing the right small companies to invest in can be daunting; however, insider purchases provide a good starting point. Insiders, especially executives and directors of small companies, tend to know their companies very well. Tracking their stock purchase activities can generate lucrative returns.

Below is a list of notable insider purchases of small-cap stocks filed at the Securities and Exchange Commission today. Following Seeking Alpha's small cap policy, all the stocks in the table are greater than $1 per share or $100 million market cap.

I have written a short analysis of each company's financial records. However, these are not buying and selling recommendations. It is also important to pay attention to how much the insiders buy, especially with respect to the size of their company and their regular income. I have filtered out those transactions with a total value of less than $10,000.

AAR Corp. (NYSE:AIR) is an aerospace/defense products and services company. It has a market cap of $510.40 million. The company pays a dividend of 2.40%. According to today's SEC filing, AAR has one insider who purchased a total of 7,500 shares at the total value of $88,650. At a P/E ratio of 7.28, the stock appears fairly cheap in valuation. This company's value seems reasonable with a sub-one PEG ratio, suggesting its growth is outpacing its valuation. Its price/book ratio is 0.55. The company is selling below book value, something worth further investigation. AAR has an enterprise value / EBITDA ratio of 5.59. The EV/EBITDA ratio indicates this company is cheap. Its profit margin was 3.89% over the past year. I believe AAR's operating margin of 7.32% is acceptable. The company had a net income of $75.23 million and EBITDA of $216.05 million on revenue of $1.96 billion. Both its revenue and earnings grew in double digits over the latest quarter, by 16.60% and 15.30%, respectively. This stock is not a bad choice for your watch list.

Genesco Inc. (NYSE:GCO) is a apparel stores company. It has a market cap of $1.445 billion. According to today's SEC filing, Genesco has one insider who purchased a total of 3,600 shares at the total value of $211,496. Its P/E ratio of 16.46 is on the expensive side. Investors should use some cautious because of this valuation. I like this company with an undervalued stock, reflected in a low PEG ratio. Its price/book ratio is 1.86. Genesco has an enterprise value / EBITDA ratio of 6.24. Since EV/EBITDA ratio already considers the debt burden, the valuation is quite cheap. The company had a net income of $88.61 million on revenue of $2.41 billion. Both its revenue and earnings grew in double digits over the latest quarter, by 24.60% and 39.30%, respectively. This month, 1.65 million shares are being shorted. Comparing to 1.58 million shares shorted over the previous month, the shared short has increased by 4%. The short ratio of Genesco is 2.90, accounting for 8.20% of floating shares. A lot of caution should be used while watching new progress.

Lexmark International Inc. (NYSE:LXK) is a computer based systems company. It has a market cap of $1.884 billion. The company pays a dividend of 4.60%. According to today's SEC filing, Lexmark International has one insider who purchased a total of 896 shares at the total value of $23,690. Its price shows near term weakness, close to 52-week low (only 8.08% higher). At a P/E ratio of 6.77, the stock appears fairly cheap in valuation. Lexmark International has an enterprise value / EBITDA ratio of 2.24. It has a profit margin of 7.22%. Its return on assets is 7.78%. Its return on equity is 20.23%. The company had a net income of $298.40 million and EBITDA of $694.20 million on revenue of $4.13 billion. Its revenue declined by 4.10%, and its net income declined by 27.00% during the most recent quarter. Obviously, printing is declining business. Lexmark has attracted many short sellers. This month, 7.00 million shares are being shorted. Comparing to 7.29 million shares shorted over the previous month, the shared short has decreased by 3%. The short ratio of Lexmark International is 7.40, accounting for 11.20% of floating shares. I would watch this stock with caution.

Omega Protein Corp. (NYSE:OME) is a processed and packaged goods company. It has a market cap of $152.50 million. According to today's SEC filing, Omega Protein has 2 insiders who purchased a total of 3,038 shares at the total value of $22,115. Multiple insider purchase occasions are usually a positive sign. At a P/E ratio of 4.92, the stock appears fairly cheap in valuation. Its price/book ratio is 0.71. The company is selling below book value, something worth further investigation. Omega Protein has an enterprise value / EBITDA ratio of 3.15, again very cheap. Both its revenue and earnings declined in double digits over the latest quarter, by 29.60% and 69.30%, respectively. I would watch this stock with caution.

Synta Pharmaceuticals Corp. (NASDAQ:SNTA) is a diagnostic substances company. It has a market cap of $332.40 million. According to today's SEC filing, Synta Pharmaceuticals has 3 insiders who purchased a total of 1,063,000 shares at the total value of $5,778,155. Multiple insider purchase occasions are usually a positive sign. One concern is the company isn't profitable at this point. It had EBITDA of $-47.78 million on revenue of $6.59 million. Over the past ten days, Synta Pharmaceuticals has seen significantly higher than average trading volume. This month, 5.44 million shares are being shorted. Comparing to 4.04 million shares shorted over the previous month, the shared short has increased by 34%. The short ratio of Synta Pharmaceuticals is 8.30, accounting for 14.70% of floating shares. I may put it on my watch list, but definitely not on top of the list.

Tyler Technologies, Inc. (NYSE:TYL) is a technical and system software company. It has a market cap of $1.23 billion. According to today's SEC filing, Tyler Technologies has 3 insiders who purchased a total of 579 shares at the total value of $19,857. Multiple insider purchase occasions are usually a positive sign. Its price shows near term strength, close to 52-week high (only 1.83% lower). Its P/E ratio of 48.56 is on the expensive side. The PEG ratio is way above one, something to be cautious about. Tyler Technologies has an enterprise value / EBITDA ratio of 21.10. The valuation is a little too expensive for my taste. It has a profit margin of 8.63%. The company had a net income of $27.51 million, EBITDA of $57.57 million, and gross profit of $141.91 million on a revenue of $318.72 million. Its revenue grew by 12.70%, and its net income declined by 0.80% during the most recent quarter. This month, 1.43 million shares are being shorted. The short ratio of Tyler Technologies is 8.60, accounting for 5.70% of floating shares.

Source: Small Cap Insider Buys Today