I screened with Open Insider for insider buy transactions filed on September 24. I then checked with Stock Charts if the stocks had bullish Point and Figure counts. From this list I chose the top 5 stocks with insider buying in dollar terms. Here is a look at the top 5 stocks:
1. Janus Capital Group (JNS) is a global investment firm offering strategies from three individual investment boutiques: Janus Capital Management, INTECH Investment Management and Perkins Investment Management. Each manager employs a research-intensive approach that is distinct within its respective asset class. This multi-boutique approach enables the firm to provide style-specific expertise across an array of strategies, including growth, value and mathematical equities, fixed income and alternatives through one common distribution platform. At the end of June 2012, JCG managed $152.4 billion in assets for shareholders, clients and institutions around the globe. Based in Denver, JCG also has offices in Frankfurt, The Hague, Paris, London, Milan, Munich, Zurich, Singapore, Hong Kong, Tokyo and Melbourne.
Dai Ichi Life Insurance Company purchased 1,145,147 shares on September 21-24 and 1,055,052 shares on September 19-20. Dai Ichi Life Insurance Company currently holds 22,608,168 shares of Janus. Janus has 201,329,431 fully diluted shares outstanding which makes Dai Ichi Life Insurance Company a 11.2% owner of Janus.
The company reported the second-quarter financial results on July 26 with the following highlights:
|Net income||$23.4 million|
The stock has a $18 price target from the Point and Figure chart. Dai Ichi Life Insurance Company has been the only insider buying the shares this year. There have been three insider sell transactions this year by other insiders. The stock is trading at a forward P/E ratio of 15.00 and has a book value of $7.25 per share. I would expect the book value of $7.25 per share to act like a support for the stock.
2. Acme United Corporation (ACU) is a leading worldwide supplier of innovative cutting, measuring and safety products to the school, home, office, hardware and industrial markets. Its leading brands include Westcott, Clauss, Camillus, PhysiciansCare and Pac-Kit.
North Star Investment Management Corporation purchased 11,511 shares on September 24 and currently holds 337,788 shares of the company. Acme has 3,103,227 shares outstanding which makes North Star Investment Management Corporation a 10.9% owner of Acme.
The company reported the second-quarter financial results on July 20 with the following highlights:
|Net income||$2.1 million|
The stock has a $15 price target from the Point and Figure chart. North Star Investment Management Corporation has purchased 28,555 shares of Acme since June 2012. There has not been any insider selling since June 2012. The stock is trading at a forward P/E ratio of 8.82. The company has a book value of $9.48 per share which I would expect to act like a support for the stock.
3. The Home Depot (HD) is the world's largest home improvement specialty retailer with fiscal 2011 retail sales of $70.4 billion and earnings of $3.9 billion. The Home Depot has more than 2,200 retail stores in the United States (including Puerto Rico and the U.S. Virgin Islands and the territory of Guam), Canada, Mexico and China.
Ronald Sargent purchased 1,667 shares on September 21 and currently holds 3,467 shares of the company. Ronald Sargent serves as a director of the company.
The company reported the second-quarter financial results on August 14 with the following highlights:
|Net income||$1.5 billion|
The company confirmed that it expects fiscal 2012 sales will be up approximately 4.6 percent from the prior year on a 53-week basis. Based on its year-to-date performance, the company raised its fiscal 2012 diluted earnings-per-share guidance and now expects diluted earnings per share to be up approximately 19 percent to $2.95 for the year. This earnings-per-share guidance includes the benefit of the company's year-to-date share repurchases and the company's intent to repurchase $1.4 billion in additional shares over the remainder of the year.
The stock has a $95 price target from the Point and Figure chart. There have been two insider buy transactions and 13 insider sell transactions this year. The stock is trading at a forward P/E ratio of 17.62. I am only cautiously bullish on the stock currently based on the insider trading activity this year.
4. Repligen Corporation (RGEN) is a life sciences company focused on the development, production and commercialization of products used in the process of manufacturing biological drugs. The company's bioprocessing products are sold to major life sciences and biopharmaceutical companies worldwide. The company is a leading manufacturer of Protein A, a critical reagent used to manufacture monoclonal antibody-based therapeutics. The company also supplies several growth factor products used to increase cell culture productivity in biomanufacturing. In the burgeoning area of disposable biomanufacturing technologies, the company has developed and markets a series of OPUS (Open Platform User Specified) single-use chromatography columns used in the biologics purification process. In addition to the core bioprocessing business, the company has a portfolio of clinical-stage partnering assets, including two central nervous system orphan drug candidates and a pancreatic imaging agent in Phase 3 development.
Glenn Cooper purchased 10,000 shares on September 21 and currently holds 26,038 shares of the company. Glenn Cooper serves as a director of the company.
The company reported the second-quarter financial results on August 2 with the following highlights:
|Net income||$1.6 million|
The company raised its revenue guidance for fiscal year 2012 from its previous estimate of $52 million to $55 million to its current estimate of $55 million to $57 million. Included in this total revenue estimate is bioprocessing revenue, for which the company increased its previous estimate of $39 million to $41 million to its current estimate of $41 million to $43 million. The company also adjusted its estimate for net profit to $5 million to $7 million for fiscal year 2012; an increase based in part on anticipated reductions in research and development costs associated with its diagnostic and orphan drug assets.
The stock has a $10.75 price target from the Point and Figure chart. There have been two insider buy transactions and there has been one insider sell transaction this year. The stock is trading at a forward P/E ratio of 32.11. I believe it is possible that the stock reaches $10 during the next 12-24 months.
5. Smithfield Foods (SFD) is a $13 billion global food company and the world's largest pork processor and hog producer. In the United States, the company is also the leader in numerous packaged meats categories with popular brands including Smithfield, Eckrich, Farmland, Armour, Cook's, Gwaltney, John Morrell, Kretschmar, Curly's, Carando, Margherita, and Healthy Ones. Smithfield Foods is committed to providing good food in a responsible way and maintains robust animal care, community involvement, employee safety, environmental, and food safety and quality programs.
Richard Crowder purchased 2,000 shares on September 20 and currently holds 3,500 shares of the company. Richard Crowder serves as a director of the company.
The company reported the fiscal 2013 first-quarter (ending July 29) financial results on September 4 with the following highlights:
|Net income||$61.7 million|
C. Larry Pope, president and chief executive officer, commented on September 4:
"Despite headwinds in our hog production business, improving fresh pork results combined with robust packaged meats profitability and higher packaged meats volumes, as well as strong international segment profitability should fuel solid results in fiscal 2013."
The stock has a $39.5 price target from the Point and Figure chart. There have been six insider buy transactions and there has been one insider sell transaction this year. The stock is trading at a forward P/E ratio of 8.62. The company has a book value of $21.89 per share. The stock is currently trading below the book value which could be a good entry point for the stock.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in SFD over the next 72 hours.