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I screened with Finviz for companies that trade with a forward P/E of less than 5 and checked if the companies had any insider buys during the last 3 months. Here are five companies that I found:

1. American Axle & Manufacturing Holdings (AXL) is a world leader in the manufacture, engineering, design and validation of driveline and drivetrain systems and related components and modules, chassis systems and metal-formed products for light trucks, sport utility vehicles, passenger cars, crossover vehicles and commercial vehicles. In addition to locations in the United States (Michigan, Ohio, Pennsylvania and Indiana), AAM also has offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, Scotland, South Korea, Sweden and Thailand.

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Insider buys

  • Thomas Walker purchased 3,000 shares on June 5th and currently controls 3,400 shares of the company. Thomas Walker has been a Director of the company since 1999.
  • Michael Simonte purchased 2,500 shares on May 9th and 5,000 shares on May 2-4th. Michael Simonte currently holds 51,951 shares of the company. Michael Simonte joined AAM in December 1998 as Director, Corporate Finance. He was named Vice President and Treasurer in June 2004, and was appointed Vice President - Finance & Chief Financial Officer on January 1, 2006.
  • Steven Hantler purchased 5,000 shares on February 7th. Steven Hantler has served as a Director since 2011.

Financials

The company reported the second quarter financial results on July 27th with the following highlights:

Revenue$740 million
Earnings per share$0.06
Cash$85 million

In the second quarter of 2012, AAM's results reflect the impact of special charges and restructuring costs of $36.5 million (or $0.49 per share), related to the closure of our Detroit Manufacturing Complex and Cheektowaga Manufacturing Facility.

New business backlog

AAM's three-year backlog of new business launching from 2012 through 2014 has grown to $1.2 billion in future annual sales. The growth in new business backlog reflects the impact of expanded awards from multiple global vehicle manufacturers for programs in North America and the growth markets of Brazil and Thailand.

My analysis

The stock has a $16.5 price target from the Point&Figure chart. I believe the target price is achievable during the next 12-24 months.

2. Best Buy (BBY) is a leading multi-channel global retailer and developer of technology products and services.

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Insider buys

Mike Mikan purchased 100,000 shares on May 23rd and currently holds 106,000 shares of the company. Mike Mikan is the interim Chief Executive Officer of Best Buy. Mike, who will remain on the board while serving as interim CEO, has been a Best Buy director since April 2008.

Financials

The company reported fiscal first quarter 2013 financial results on May 22nd with the following highlights:

Revenue$11.6 billion
Earnings$0.47 per share
Cash$1.4 billion

Outlook

The company is maintaining its fiscal 2013 outlook of adjusted (non-GAAP) diluted EPS in the range of $3.50 to $3.80, including the impact of expected share repurchases and excluding fiscal 2013 restructuring costs.

My analysis

The stock has a $10 price target from the Point&Figure chart. If the price target is achieved I would be looking to be a buyer of the stock.

3. Cliffs Natural Resources (CLF) is an international mining and natural resources company. A member of the S&P 500 Index, the company is a major global iron ore producer and a significant producer of high- and low-volatile metallurgical coal. Cliffs' strategy is to continually achieve greater scale and diversification in the mining industry through a focus on serving the world's largest and fastest growing steel markets. Driven by the core values of social, environmental and capital stewardship, Cliffs associates across the globe endeavor to provide all stakeholders operating and financial transparency.

The company is organized through a global commercial group responsible for sales and delivery of Cliffs products and a global operations group responsible for the production of the minerals the company markets. Cliffs operates iron ore and coal mines in North America and two iron ore mining complexes in Western Australia. In addition, Cliffs has a major chromite project, in the feasibility stage of development, located in Ontario, Canada.

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Insider buys

  • James Michaud purchased 500 shares on May 21st and currently controls 5,805 shares of the company. James Michaud serves as SVP, Human Resources according to SEC filings.
  • Andres Gluski purchased 1,290 shares on May 11th and currently holds 5,744 shares of the company. Mr. Gluski has served as a Director of the company since 2011.
  • Kelly Tompkins purchased 1,500 shares on May 10th and currently controls 23,506 shares of the company. Mr. Tompkins is executive vice president - Legal, Government Affairs and Sustainability, and chief legal officer.

Financials

The company reported second quarter financial results on July 25th with the following highlights:

Revenue$1.6 billion
Earnings$1.81 per share
Cash$159 million

Outlook

Cliffs expects its primary end markets to remain stable for the second half of the year. Continued increases in steel production, along with monetary action taken by the Chinese government to spur accelerated economic growth, are anticipated to support Cliffs' annual Chinese crude steel production expectation of approximately 730 million tons. The company continues to anticipate modest growth in the U.S. economy, which will position Cliffs' U.S. Iron Ore business to generate healthy results. Due to the year-to-date spot price for 62% Fe seaborne iron ore averaging $142 per ton, Cliffs is modestly decreasing its average full-year 2012 seaborne iron ore spot price expectation to approximately $145 per ton (C.F.R. China) from its previous expectation of $150 per ton.

My analysis

The stock has met its $38 price target from the Point&Figure chart. I believe the current share price is a good entry point for the stock.

4. Cenveo (CVO) is a leading global provider of print and related resources, offering world-class solutions in the areas of envelopes, custom labels, specialty packaging, commercial print, publisher solutions and business documents. The company provides a one-stop offering through services ranging from design and content management to fulfillment and distribution.

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Insider buys

  • Leonard Green purchased 2,000 shares on June 7th and currently controls 866,028 shares of the company. Leonard Green serves as a Director of the company.
  • Ian Scheinmann purchased 2,000 shares on June 1st and currently holds 24,757 shares of the company. Mr. Scheinmann became Cenveo's Vice President, Legal Affairs in August of 2010.
  • Robert Burton purchased 5,000 shares on May 23th and holds 518,871 shares of the company. Mr. Burton has been Cenveo's Chairman and Chief Executive Officer since September 2005.
  • Robert Obernier purchased 4,424 shares on May 22nd and 10,300 shares on May 21st. Robert Obernier currently holds 235,021 shares of the company. Mr. Obernier serves as a Director of the company.
  • Harry Vinson purchased 5,000 shares on May 16th and currently holds 295,419 shares of the company. Mr Vinson serves as the President of Cenveo Print.
  • Mark Griffin purchased 5,000 shares on May 15th and currently holds 125,144 shares of the company. Mr. Griffin serves as a Director of the company.
  • Mark Hiltwein purchased 5,000 shares on May 14th and currently holds 332,158 shares of the company. Mr. Hiltwein serves as an Executive Vice President and Chief Financial Officer of the company.
  • Dean Cherry purchased 10,000 shares on May 11th and currently holds 264,744 shares of the company. Mr. Cherry serves as an Executive Vice President of Operations.
  • Gerald Armstrong purchased 8,000 shares on May 11th and currently holds 95,971 shares of the company. Mr. Armstrong serves as a Director of the company.

Financials

The company reported first quarter financial results on May 9th with the following highlights:

Revenue$455 million
Operating income$14.2 million
Non-GAAP operating income$31.6 million

Outlook

Mr. Burton concluded:

"As we look forward to 2012 and beyond, we believe that our future success will be based on our current operating plan: to invest in our market leading businesses in niche markets; to leverage our low-cost, highly efficient operating platform; and to make disciplined accretive strategic acquisitions. We will continue to focus on de-leveraging our balancing sheet by driving cash flow, improving working capital, and by continuing to push for operational improvement. Based on the current business climate and factoring in our recent divestitures, I expect $230 million to $240 million in Adjusted EBITDA, and approximately $100 million to $110 million free cash flow and expect to end the year with net leverage between 4.5 and 4.7x. I look forward to our conference call tomorrow to discuss in more depth our positive 2012 outlook for Cenveo."

My analysis

I believe the stock could have made a low at May 2012. With the recent insider buying by nine different insiders I could consider taking a position in the stock.

5. Delta Air Lines (DAL) serves more than 160 million customers each year. With an industry-leading global network, Delta and the Delta Connection carriers offer service to nearly 350 destinations in 65 countries on six continents. Headquartered in Atlanta, Delta employs 80,000 employees worldwide and operates a mainline fleet of more than 700 aircraft. A founding member of the SkyTeam global alliance, Delta participates in the industry's leading trans-Atlantic joint venture with Air France-KLM and Alitalia. Including its worldwide alliance partners, Delta offers customers more than 13,000 daily flights, with hubs in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita.

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Insider buys

Paula Reynolds purchased 10,000 shares on May 2nd and currently holds 47,973 shares of the company. Paula Reynolds serves as a Director of the company.

Financials

The company reported the second quarter financial results on July 25th with the following highlights:

Revenue$9.7 billion
Net income excluding special items$0.69 per share
Liquidity$5.3 billion

Outlook

Richard Anderson, Delta's chief executive officer:

"Moving forward, we expect to have strong profitability in the September quarter with a 10 - 12% operating margin as we continue to reap the benefits of investments we've made in our operation and customer experience."

My analysis

The stock has a $21 price target from the Point&Figure chart. I believe the price target is achievable during the next 12-24 months.

Source: 5 Companies Trading At A Forward P/E <5 With Recent Insider Buying