When insiders buy shares on the open market, their companies are usually undervalued. Corporate insiders often have the inside track on their companies' prospects. Insiders probably wouldn't risk investing too much of their own money into their own companies unless they thought the stock might rise.
I screened for companies where at least one insider made a buy worth over $400,000 filed on July 30. Here are three stocks that I found:
1. Nokia Corporation (NOK) is a global leader in mobile communications whose products have become an integral part of the lives of people around the world. Every day, more than 1.3 billion people use their Nokia to capture and share experiences, access information, find their way or simply to speak to one another. Nokia's technological and design innovations have made its brand one of the most recognized in the world.
Click to enlarge
Insider buys
- Risto Siilasmaa purchased 333,000 shares on July 30th and currently holds 732,592 shares of the company. Mr. Siilasmaa is Chairman of the Board of Directors of Nokia Corporation.
- Bruce Brown purchased 22,000 shares on July 30th and currently holds 42,850 shares of the company. Mr. Brown has been Board member since May 3, 2012.
- Helge Lund purchased 17,000 shares on July 30th and currently holds 46,596 shares of the company. Mr. Lund has been Board member since May 3, 2011.
- Mårten Mickos purchased 67,500 shares on July 30th and currently holds 88,350 shares of the company. Mr. Mickos has been Board member since May 3, 2012.
- Kari Stadigh purchased 170,404 shares on July 30th and currently holds 400,000 shares of the company. Mr. Stadigh has been Board member since May 3, 2011.
- Stephen Elop purchased 275,000 shares on July 27th and currently holds 425,000 shares of the company. Mr. Elop is President and CEO of Nokia Corporation.
- Henning Kagermann purchased 136,060 shares on July 27th and currently holds 187,977 shares of the company. Henning Kagermann serves as Director of the company.
My analysis
I wrote an article about Nokia on July 19th. I believe we could see a $3-$5 share price during the next 6-9 months.
2. Teledyne Technologies Inc (TDY) is a leading provider of sophisticated instrumentation, digital imaging products and software, aerospace and defense electronics, and engineered systems. Teledyne Technologies' operations are primarily located in the United States, Canada, the United Kingdom and Mexico.
Insider buys
Robert Mehrabian purchased 10,000 shares on July 30th and currently holds 190,107 shares of the company. In November 1999, Mehrabian became president and chief executive officer of Teledyne Technologies, after its spin-off from Allegheny Technologies, and became chairman of the board in December 2000.
Financials
The company reported its second quarter financial results on July 26th with the following highlights:
| Revenue | $519 million |
| Earnings per share | $1.06 |
| Cash flow | $69 million |
Outlook
The company is affirming full year 2012 GAAP earnings outlook of $3.98 to $4.04 per share.
My analysis
The stock has a $76 price target from the Point&Figure chart. I believe the target price is achievable during the next 12 months.
3. Opko Health Inc (OPK) is a publicly traded healthcare company involved in the discovery, development, and commercialization of pharmaceutical products, vaccines and diagnostic products.
Insider buys
Phillip Frost has purchased 390,000 shares during the last five trading days and currently controls 129,782,900 shares of the company. The company has 297,543,066 shares outstanding - which makes Mr. Frost a 43.6% owner of the company. Mr. Frost is the CEO and Chairman of the company. Philip Frost has been a buyer almost everyday this year. Mr. Frost's net worth is $2.3 billion as of March 2012.
Financials
The company reported its first quarter results on May 10th with the following highlights:
| Cash | $62.1 million |
| Net loss per share | $0.03 |
| Cash per share | $0.21 |
Upcoming milestones
- The company expects to begin marketing its test for Alzheimer's disease in 2013. The company believes that this test could initially be useful in stratifying patients for ongoing clinical trials of potential Alzheimer's drugs, as well as to confirm the diagnosis in a clinical setting and to track the progression of the disease or effectiveness of a therapeutic in a clinical trial.
- The company has already obtained a CE Mark for its point-of-care diagnostic test for prostate specific antigen (PSA) using its system in Europe and the company intends to launch the PSA test in Europe in the second half of 2012.
- In December 2011, the company commenced a multi-center study in the U.S. for the PSA test which is designed for 510(k) clearance and potential waiver under The Clinical Laboratory Improvement Amendments of 1988. The company intends to submit its application to the Food and Drug Administration for clearance of the PSA test in 2012 and expects to begin marketing the test in the U.S. in 2013.
My analysis
The stock has a $7.13 price target from the Point&Figure chart. I believe the target price is achievable during the next 12 months.
