Seeking Alpha
Long/short equity, insider ownership
Profile| Send Message|
( followers)  

I screened with Open Insider for insider buy transactions filed on October 12. From this list, I chose the top 5 stocks with insider buying in dollar terms. Here is a look at these 5 stocks:

1. DaVita (NYSE: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.

(click to enlarge)

Insider buys

Berkshire Hathaway purchased 217,597 shares on October 10-12, 67,946 shares on October 9 and 282,403 shares on September 26-28. Berkshire Hathaway currently holds 10,483,112 shares of DaVita. DaVita has 94.6 million shares outstanding which makes Berkshire Hathaway a 11.1% owner of DaVita.

Financials

The company reported the second-quarter financial results on August 1 with the following highlights:

Revenue$1.9 billion
Net income$95.3 million
Cash$273.4 million

Outlook

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.

My analysis

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 20.15 and a forward P/E ratio of 16.03. I am cautiously bullish on the stock currently.

2. Janus Capital Group (NYSE: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.

(click to enlarge)

Insider buys

Dai Ichi Life Insurance Company purchased 538,096 shares on October 11-12, 601,598 shares on October 9-10, 758,282 shares on October 5-8, 497,900 shares on October 3-4, 1,535,407 shares on October 1, 2,748,666 shares on September 27-28, 1,209,429 shares on September 25-26, 1,145,147 shares on September 21-24 and 1,055,052 shares on September 19-20. Dai Ichi Life Insurance Company currently controls 30,497,546 shares of Janus. Janus has 201,329,431 fully diluted shares outstanding which makes Dai Ichi Life Insurance Company a 15.1% owner of Janus.

Financials

The company reported the second-quarter financial results on July 26 with the following highlights:

Revenue$206.0 million
Net income$23.4 million
Cash$638.6 million

My analysis

The stock has a $18 price target from the Point and Figure chart. There have been nine insider buy transactions and three insider sell transactions this year. The stock is trading at a P/E ratio of 15.05 and a forward P/E ratio of 14.68. The company has a book value of $7.25 per share. The 200 day moving average is currently at $8 which could act like a support for the stock.

3. ViaSat (NASDAQ: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.

(click to enlarge)

Insider buys

Fpr Partners purchased 80,755 shares on October 10, 335,000 shares on October 9 and 186,023 shares on October 8. Fpr Partners currently controls 5,133,587 shares of ViaSat. ViaSat has 43,525,952 shares outstanding which makes Fpr Partners a 11.8% owner of ViaSat.

Financials

The company reported the first-quarter fiscal 2013, which ended June 29, financial results on August 2 with the following highlights:

Revenue$241.8 million
Net loss$14.4 million
Cash$129.9 million

My analysis

The stock has met its bearish $38 price target from the Point and Figure chart. There have been three insider buy transactions and 25 insider sell transactions this year. The stock is trading at a forward P/E ratio of 27.96. The company has a book value of $20.43 per share. I have a neutral bias for the stock currently.

4. Ramtron International Corporation (RMTR), headquartered in Colorado Springs, Colorado, is a fabless semiconductor company that designs, develops and markets specialized semiconductor memory and integrated semiconductor solutions used in a wide range of product applications and markets.

(click to enlarge)

Insider buys

Cypress Semiconductor Corporation (NASDAQ:CY) purchased 647,001 shares on October 10-12 pursuant to a tender offer.

On September 19, 2012 Cypress Semiconductor Corporation and Ramtron International Corporation entered into a definitive merger agreement under which Cypress will acquire all outstanding stock of Ramtron at a price of $3.10 per share in cash. The transaction, valued at approximately $109.8 million (excluding assumed debt and options and including shares previously acquired by Cypress), represents a premium of 71% to Ramtron's closing price of $1.81 per share on June 11, 2012, the day before Cypress publicly disclosed its offer for Ramtron. The Boards of Directors of both Cypress and Ramtron have approved the transaction. Ramtron's Board of Directors unanimously recommends that Ramtron stockholders tender their shares in Cypress's increased tender offer.

5. PIMCO Corporate & Income Opportunity Fund (NYSE:PTY) seeks maximum total return through a combination of current income and capital appreciation.

(click to enlarge)

Insider buys

William Gross purchased 56,134 shares on October 11 and 391,561 shares on October 10. Mr. Gross is a founder, managing director and co-CIO of PIMCO. Mr. Gross's net worth was $2.3 billion as of September 2012.

Financials

The fund's Net Asset Value was $17.19 per share as of October 11. The fund is trading currently at a 15.88% premium to its Net Asset Value.

My analysis

The stock has a $27 price target from the Point and Figure chart. There have been two insider buy transactions 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 $18.30 which could be a good entry point for the stock.

Source: 5 Stocks With Insider Buys Filed On October 12 To Consider