I screened with Open Insider for insider buy transactions filed on October 11. From this list, I chose the top 5 stocks with insider buying in dollar terms. Here is a look at these 5 stocks:
1. ViaSat (VSAT) delivers fast, secure communications, Internet, and network access to virtually any location for consumers, governments, enterprise, and the military. The company offers fixed and mobile satellite network services including Exede by ViaSat, which features ViaSat-1, the world's highest capacity satellite; service to more than 1,750 mobile platforms, including Yonder Ku-band mobile Internet; satellite broadband networking systems; and network-centric military communication systems and cyber security products for the U.S. and allied governments. ViaSat also offers communication system design and a number of complementary products and technologies. Based in Carlsbad, California, ViaSat has established a number of worldwide locations for customer service, network operations, and technology development.
Fpr Partners purchased 335,000 shares on October 9 and 186,023 shares on October 8. Fpr Partners currently controls 5,052,832 shares of ViaSat. ViaSat has 43,525,952 shares outstanding which makes Fpr Partners a 11.6% owner of ViaSat.
The company reported the first-quarter fiscal 2013, which ended June 29, financial results on August 2 with the following highlights:
|Net loss||$14.4 million|
The stock has met its bearish $38 price target from the Point and Figure chart. There have been two insider buy transactions and 25 insider sell transactions this year. The stock is trading at a forward P/E ratio of 28.03. The company has a book value of $20.43 per share. I have a neutral bias for the stock currently.
2. Glu Mobile (GLUU) is a leading global developer and publisher of freemium games for smartphone and tablet devices. Glu is focused on creating compelling original IP games such as Blood & Glory, Deer Hunter, Frontline Commando, Gun Bros, and Samurai Vs. Zombies Defense on a wide range of platforms including iOS, Android, Windows Phone, Google Chrome and Mac OS. Glu's unique technology platform enables its titles to be accessible to a broad audience of consumers globally. Founded in 2001, Glu is headquartered in San Francisco with a major office outside Seattle, and international locations in Brazil, Canada, China and Russia.
Hany Nada purchased 3,243,218 shares on October 9-11 pursuant to a trading plan designed to comply with Rule 10b5-1 of the Securities Exchange Act of 1934 that Granite Global Ventures II and GGV II Entrepreneurs Fund entered into on February 28, 2012. Hany Nada has served on Glu Mobile's Board since April 2005. Hany is a co-founder of GGV Capital.
The company reported the second-quarter financial results on August 2 with the following highlights:
|Net loss||$3.0 million|
Eric R. Ludwig, Glu Mobile's Chief Financial Officer commented on October 9:
"When we announced results for the second quarter on August 2, 2012, we stated that we expected non-GAAP revenues for Q3 2012 to be in the range of $20.25 million to $21.25 million, which includes $17.5 million to $18.5 million in non-GAAP smartphone revenues. We also stated that we expected an Adjusted EBITDA loss of between $3.1 million and $4.0 million for Q3 2012. We currently expect that, on our regularly scheduled earnings call on November 1, 2012, we will report third quarter 2012 revenue results that are consistent with that prior guidance. We also expect Adjusted EBITDA results to be slightly favorable to the $3.1 million high end of that guidance."
When the company gave revenue guidance for the third quarter of 2012, only 1 of the 9 titles expected to be launched during the quarter was globally live. The company then commented that it used its "historical batting averages" of success and failures to calculate its revenue guidance on those back-end loaded titles. The company noted that if those 8 then-yet-to-be-launched titles performed better than its historical averages, then its guidance could prove conservative. However, "as shown by the publicly available Apple App Store and Google Play rankings, of the 11 titles actually launched during Q3, we did not have any titles that were successful at the level of some of our prior breakout hits, and we had more titles that underperformed our expectations," noted Mr. Ludwig.
Niccolo de Masi, President and Chief Executive Officer of Glu Mobile commented:
"As we have stated in the past, the revenue contribution across quarters of a title depends on its early peak performance. We did not have any breakout title launches in Q3 and are still evaluating our expectations of their lifetime performance. In the next several weeks, we expect to launch Contract Killer 2 and Death Dome, which titles will be important to Q4 revenue performance. Consequently, we have yet to form an updated view on fourth quarter 2012 results. However, we will manage the business to be Adjusted EBITDA break-even or better for Q4. We will provide an updated view on Q4 guidance along with our final Q3 results at our regularly scheduled earnings call."
The stock tanked after the October 9 guidance update. There have been two insider buy transactions and four insider sell transactions this year. The stock is trading at a forward P/E ratio of 16.06. I have a neutral bias for the stock currently.
3. Office Depot (ODP) provides office supplies and services through 1,680 worldwide retail stores, a field sales force, top-rated catalogs and global e-commerce operations. Office Depot has annual sales of approximately $11.5 billion, employs about 39,000 associates, and serves customers in 60 countries around the world.
Starboard Value LP purchased 4,094,119 shares on October 9-11 and 6,916,981 shares on September 12-14. Starboard Value LP currently holds 42,100,000 shares of Office Depot. Office Depot has 285,160,572 shares outstanding which makes Starboard Value LP a 14.8% owner of Office Depot.
The company reported the second-quarter financial results on August 7 with the following highlights:
|Net loss||$64.3 million|
The company affirmed its outlook on September 5 as follows:
- The company expects to achieve full-year 2012 adjusted EBIT in the $125 to $135 million range, an increase of approximately $5 to $10 million from 2011; and
- The company also expects full-year 2012 free cash flow to be in the $80 to $100 million range from an operational perspective, an increase of approximately $10 to $30 million from 2011.
The stock has a $1.5 price target from the Point and Figure chart which was almost hit in September. There have been three insider buy transactions and there have not been any insider sell transactions this year. The company has a book value of $3.86 per share and a cash position of $1.48 per share. The stock could find some support from the 50 day moving average currently at $2 level which could be a good entry point for the stock.
4. PIMCO Corporate & Income Opportunity Fund (PTY) seeks maximum total return through a combination of current income and capital appreciation.
The fund's Net Asset Value was $17.15 per share as of October 10. The fund is trading currently at a 13.99% premium to its Net Asset Value.
The stock has a $27 price target from the Point and Figure chart. There has been one insider buy transaction and there have not been any insider sell transactions this year. The stock has a 7.77% dividend yield. The 200 day moving average is currently at $18.28 which could be a good entry point for the stock.
5. DaVita (DVA) is a leading provider of kidney care in the United States, delivering dialysis services to patients with chronic kidney failure and end stage renal disease. DaVita strives to improve patients' quality of life by innovating clinical care, and by offering integrated treatment plans, personalized care teams and convenient health-management services. As of June 30, 2012, DaVita operated or provided administrative services at 1,884 outpatient dialysis centers located in the United States serving approximately 149,000 patients. The company also operated 19 outpatient dialysis centers located in four countries outside the United States. DaVita supports numerous programs dedicated to creating positive, sustainable change in communities around the world. The company's leadership development initiatives and social responsibility efforts have been recognized by Fortune, Modern Healthcare, Newsweek and WorldBlu.
Berkshire Hathaway purchased 67,946 shares on October 9 and 282,403 shares on September 26-28. Berkshire Hathaway currently holds 10,265,515 shares of DaVita. DaVita has 94.6 million shares outstanding which makes Berkshire Hathaway a 10.9% owner of DaVita.
The company reported the second-quarter financial results on August 1 with the following highlights:
|Net income||$95.3 million|
The company's operating income guidance for 2012 is in the range of $1,275 million to $1,325 million. The company expects its operating cash flows for 2012 to be in the range of $950 million to $1,050 million.
The stock has a $141 price target from the Point and Figure chart. Berkshire Hathaway has been the only insider buying the shares this year. There have been 19 insider sell transactions since April 2012. The stock is trading at a P/E ratio of 19.98 and a forward P/E ratio of 15.89. I am cautiously bullish on the stock currently.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in ODP over the next 72 hours.