I screened with Open Insider for insider buy transactions filed on October 16. From this list, I chose the top five stocks with insider buying in dollar terms. Here is a look at these five stocks:
1. Intercept (ICPT) is a biopharmaceutical company focused on the development and commercialization of novel therapeutics to treat orphan and more prevalent liver diseases utilizing its expertise in bile acid chemistry. The company's lead product candidate, obeticholic acid, or OCA, is a bile acid analog and first-in-class agonist of the farnesoid X receptor [FXR]. OCA is initially being developed for the second line treatment of primary biliary cirrhosis [PBC] in patients with an inadequate response to, or who are unable to tolerate, ursodiol, the only approved therapy for this indication. PBC is a chronic autoimmune liver disease that may progress to cirrhosis and liver failure, and it is currently the fifth leading indication for liver transplant in the United States. OCA has orphan drug designation in both the United States and Europe for the treatment of PBC. Intercept owns worldwide rights to OCA outside of Japan and China, where it has outlicensed the product candidate to Dainippon Sumitomo Pharma [DSP].
Orbimed Advisors purchased 333,334 shares on October 16 pursuant to the initial public offering. Orbimed Advisors currently controls 2,150,634 shares of Intercept. Intercept has 15,733,483 shares outstanding after the IPO which makes Orbimed Advisors a 13.7% owner of Intercept.
The company reported the first-half 2012 financial results with the following highlights:
|Net loss||$9.3 million|
|Cash pro forma after IPO||$108.0 million|
The company is conducting a Phase 3 clinical trial of OCA in PBC, which is called the POISE trial, that Intercept anticipates will serve as the basis for seeking regulatory approval in the United States and Europe. As of September 30, 2012, the company had enrolled approximately two-thirds of the total number of patients targeted for its POISE trial, and the company currently expects results from the trial to be available by mid-2014. OCA has received orphan drug designation in the United States and Europe for the treatment of PBC.
The stock started trading on October 11 and is currently trading well above its IPO price of $15. There were two insider buy transactions and there were no insider sell transactions in the IPO. The next major catalyst for the stock will be the results from the POISE trial by mid-2014. I am cautiously bullish on the stock for the long term.
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 200,000 shares on October 12, 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 5,393,383 shares of ViaSat. ViaSat has 43,525,952 shares outstanding which makes Fpr Partners a 12.4% 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 five insider buy transactions and 25 insider sell transactions this year. The stock is trading at a forward P/E ratio of 27.82. The company has a book value of $20.43 per share. I have a neutral bias for the stock currently.
3. 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 800,000 shares on October 15-16, 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 31,297,546 shares of Janus. Janus has 201,329,431 fully diluted shares outstanding which makes Dai Ichi Life Insurance Company a 15.5% 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. There have been 10 insider buy transactions and three insider sell transactions this year. The stock is trading at a P/E ratio of 15.22 and a forward P/E ratio of 14.25. 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.
4. Cracker Barrel Old Country Store (CBRL) was established in 1969 in Lebanon, Tenn. and operates 615 company-owned locations in 42 states. Cracker Barrel Old Country Store provides a friendly home-away-from-home in its old country stores and restaurants. Guests are cared for like family while relaxing and enjoying real home-style food and shopping that's surprisingly unique, genuinely fun and reminiscent of America's country heritage … all at a fair price. The restaurant serves up delicious, home-style country food such as meatloaf and homemade chicken n' dumplings as well as its made from scratch biscuits using an old family recipe. The authentic old country retail store is fun to shop and offers unique gifts and self-indulgences.
Sardar Biglari purchased 34,000 shares on October 12-15, 26,528 shares on September 17-18 and 48,244 shares on July 23-25. Sardar Biglari currently controls 4,121,037 shares of the company. The company has 23.5 million shares outstanding which makes Sardar Biglari a 17.4% owner of Cracker Barrel Old Country Store. Sardar Biglari has purchased 1,837,050 shares since January 2012.
The company reported the full-year fiscal 2012 (ended August 3, 2012) financial results on September 19 with the following highlights:
|Net income||$103.1 million|
For fiscal 2013, the company expects total revenue of between $2.6 billion and $2.65 billion and earnings per diluted share of between $4.50 and $4.70. The increased revenue projection for fiscal 2013 reflects the expected opening of 12 new Cracker Barrel stores and projected increases in comparable store restaurant and retail sales in a range of 2.0% to 3.0%. Despite expectations for increases in food commodity costs of between 5.0% and 6.0% for the year, the company projects an operating income margin of between 7.3% and 7.5% of revenues. The company expects depreciation expense of between $66 million and $68 million, net interest expense of between $36 million and $38 million, and an effective tax rate of between 32% and 33%. The company expects capital expenditures during fiscal 2013 to be between $90 million and $100 million.
The company expects to report earnings per diluted share for the first quarter of 2013 of between $1.00 and $1.05.
The stock has a $101 price target from the Point and Figure chart. There have been 21 insider buy transactions and 19 insider sell transactions this year. The stock is trading at a P/E ratio of 15.27 and a forward P/E ratio of 12.23. The stock is currently trading at all time highs. I am cautiously bullish on the stock.
5. Unifi (UFI) is a diversified producer and processor of multi-filament polyester and nylon textured yarns and related raw materials. The company adds value to the supply chain and enhances consumer demand for its products through the development and introduction of branded yarns that provide unique performance, comfort and aesthetic advantages. Key Unifi brands include, but are not limited to: AIO -all-in-one performance yarns, SORBTEK, A.M.Y., MYNX UV, REPREVE, REFLEXX, MICROVISTA and SATURA. Unifi's yarns and brands are readily found in home furnishings, apparel, legwear, and sewing thread, as well as industrial, automotive, military, and medical applications.
Kenneth Langone purchased 95,000 shares on October 12 and currently holds 900,495 shares of the company. Kenneth Langone serves as a director of the company.
The company reported the fiscal year ended June 24, 2012 financial results on July 25 with the following highlights:
|Net income||$11.5 million|
Bill Jasper, Chairman and CEO, commented on July 26 earnings conference call:
Considering an economy and consumer demand that is slowly recovering and raw material costs that will likely increase slowly over the next few months, the company expects adjusted EBITDA for the first quarter of fiscal 2013 to be in the $13 million to $14 million range, and we anticipate adjusted EBITDA to be in the low $50 millions for the 2013 fiscal year, an improvement of about $10 million compared to the 2012 fiscal year.
The stock has a $14 price target from the Point and Figure chart. There has been one insider buy transaction and there have been two insider sell transactions this year. The stock is trading at a P/E ratio of 24.54 and a forward P/E ratio of 7.19. I have a neutral bias for the stock currently.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in JNS over the next 72 hours.