I screened with Open Insider for insider buy transactions filed on October 15. From this list, I chose the top 5 stocks with insider buying in dollar terms. Here is a look at these 5 stocks:
1. Diamondback Energy (FANG) is an independent oil and natural gas company focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. Diamondback Energy's activities are primarily focused on the Clearfork, Spraberry, Wolfcamp, Cline, Strawn and Atoka formations, which is referred collectively as the Wolfberry play.
The company reported the second-quarter financial results with the following highlights:
|Net income||$13.6 million|
The company received $204.6 million from the initial public offering which closed on October 12.
The stock started trading on October 12. There was one insider buy transaction and there were not any insider sell transactions in the IPO. The stock is trading at a P/E ratio of 30.76. I have a neutral bias for the stock currently.
2. 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 59,796 shares on October 11, 80,755 shares on October 10, 335,000 shares on October 9 and 186,023 shares on October 8. Fpr Partners currently controls 5,193,383 shares of ViaSat. ViaSat has 43,525,952 shares outstanding which makes Fpr Partners a 11.9% 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 four insider buy transactions and 25 insider sell transactions this year. The stock is trading at a forward P/E ratio of 27.68. The company has a book value of $20.43 per share. I have a neutral bias for the stock currently.
3. Wausau Paper (WPP) produces and markets specialty papers for industrial, commercial and consumer end markets as well as a complete line of away-from-home towel and tissue products.
Starboard Value LP purchased 250,000 shares on October 11-12, 250,000 shares on October 3-5, 742,327 shares on September 21-25, 82,673 shares on September 4-5 and 350,000 shares on August 16-17. Starboard Value LP currently controls 7,100,000 shares of Wausau Paper. Wausau Paper has 49,322,921 shares outstanding, which makes Starboard Value LP a 14.4% owner of Wausau Paper.
The company reported the second-quarter financial results on July 30 with the following highlights:
|Adjusted net earnings per share||$0.09|
Henry C. Newell, president and CEO commented on October 1:
"In the near-term, Paper segment profitability challenges will significantly affect second-half adjusted earnings. Consequently, we are reducing our full-year adjusted earnings guidance to $0.28 to $0.30 per share, and anticipate mid-single digit adjusted earnings per share in both the third and fourth quarters."
The company's previous guidance was for full-year adjusted net earnings in the $0.39 to $0.41 per share range versus prior-year adjusted net earnings of $0.33 per share.
The stock has a $17 price target from the Point and Figure chart. There have been six insider buy transactions and there have not been any insider sell transactions this year. The stock is trading at a forward P/E ratio of 20.52. The stock has not traded at $17 since 2005. I am cautiously bullish on the stock currently.
4. Reed's, Inc. (REED) makes the top-selling natural sodas in the natural foods industry sold in over 13,000 natural food markets and supermarkets nationwide. Its six award-winning non-alcoholic Ginger Brews are unique in the beverage industry, being brewed, not manufactured and using fresh ginger, spices and fruits in a brewing process that predates commercial soft drinks. The company owns the top-selling root beer line in natural foods, the Virgil's Root Beer product line, and the top-selling cola line in natural foods, the China Cola product line. In 2012, the company launched Reed's Culture Club Kombucha line of organic live beverages. Other product lines include: Reed's Ginger Candies and Reed's Ginger Ice Creams. In 2009, Reed's started producing private label natural beverages for select national chains. Reed's products are sold through specialty gourmet and natural food stores, mainstream supermarket chains, retail stores and restaurants nationwide, and in Canada, as well as through private label relationships with major supermarket chains.
- James Linesch purchased 62,338 shares on October 11. James Linesch serves as CFO of Reed's.
- Thierry Foucaut purchased 41,299 shares on October 11. Thierry Foucaut has been Reed's Chief Operating Officer since May 2007.
The company reported the second-quarter financial results on August 13 with the following highlights:
|Net income||$0.4 million|
Chris Reed, Founder and CEO of Reed's, Inc., commented on August 13:
"This is our 11th quarter of double-digit revenue growth and has resulted in the company moving into a profitable position. The second quarter results are confirmation that our 2012 business plan remains on track. Our branded and private label categories continue expand. We believe our momentum will continue in the second half of the year. Our new Kombucha line continues to roll out nationally. Early results are positive."
The stock has a $10.5 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 is trading at a forward P/E ratio of 60.69. The stock has not traded at $10 since 2007. I am cautiously bullish on the stock currently.
5. PrivateBancorp (PVTB), through its subsidiaries, delivers customized business and personal financial services to middle-market companies, as well as business owners, executives, entrepreneurs and families in the markets and communities the company serves. As of September 30, 2012, the company had 35 offices in 10 states and $13.3 billion in assets.
Bruce Hague purchased 4,000 shares on October 11 and currently holds 149,742 shares of the company. Bruce Hague is President, National Commercial Lending, for The PrivateBank and a member of the Executive Management Committee.
The company reported the third-quarter financial results on October 10 with the following highlights:
|Net income||$19.6 million|
|Book value||$15.49 per share|
|Tangible book value||$14.00 per share|
The stock has a $22.5 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 is trading at a P/E ratio of 23.10 and a forward P/E ratio of 14.17. The stock has not traded at $20 since 2009. The 200 day moving average is currently at $15 which could act like a support for the stock. It is also important to note that the book value is $15.49 per share which could make the support stronger.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in PVTB over the next 72 hours.