8 Recent CFO Buys of Small-Cap Stocks

by: The Keating Letter

There was a lot of insider buying over the past week, especially for CEOs and CFOs. My CEO article yesterday had 22 buys of at least $100,000. I had to break up the CFO buys into three articles, this one focusing on small caps, one focusing on mid and large cap stocks, and one for micro caps. Here are eight small cap stocks with recent CFO buys of at least $20,000. The information is courtesy of SECForm4.com.

Hillenbrand (NYSE:HI): CFO Cynthia Lucchese bought 1,200 company shares on August 11 for $19.07 per share. The total transaction was just under $23,000. She was joined by five other insiders who bought last week, including the CEO. Hillenbrand has two businesses, a casket and urn company, and material handling equipment manufacturer. Shares currently yield 3.8%.

Deltek (NASDAQ:PROJ): Deltek is a $448 million market cap enterprise software company. Shares have slumped recently along with the overall market. Deltek has struggled to turn a profit over the past few years after a strong period after going public in late 2007. CFO Michael Corkery seems to have some optimism though. He bought 10,000 shares between August 5 and 9 at prices between $6.36 and $6.74. Corkery’s purchase was the only open market buy I’ve seen for the company going back to at least 2009. Of course, there have been a lot of options grants.

Chemtura (NYSE:CHMT): Chemtura is another one with multiple recent insider buys, including from the CEO. CFO Steven Forsyth bought 10,000 shares on August 9 at $12.32 per share. The stock of this $1.4 billion market cap specialty chemical maker has already jumped by nearly $2 since Forsyth’s purchase.

Halozyme Therapeutics (NASDAQ:HALO): CFO Kurt Gustafson spent about $47,000 buying company shares on August 9. He picked up 8,000 shares at an average purchase price of $5.88. Like many other stocks over this time period, Gustafson’s investment has paid off. Shares are up nearly 20% since his purchase. Halozyme is biopharma company focusing on the human enzyme family hyaluronidases. It sports a $692 million market cap and has yet to turn a profit.

Old Dominion Freight Line (NASDAQ:ODFL): Old Dominion is a North Carolina-based carrier offering less than truckload freight services. It has a $1.9 billion market cap and a P/E of 17. CFO Wes Frye, or I should his wife, bought 1,398 company shares on August 8 and 9 at an average purchase price of $29.83. Shares are up 8% since then.

Glatfelter (GLT): CFO John Jacunski bought 5,000 shares on August 8 at $12.50 per share. The stock price for this $635 million market cap specialty paper maker is already up 11% since then. The company has a low P/E of 8 and a dividend yield of 2.6%. I had highlighted the CEO’s insider buys from earlier this year back in March.

Portfolio Recovery Associates (NASDAQ:PRAA): This company outsources receivables management related services, which you would think would be attractive in this economic environment. Shares have been fairly volatile this year but appear fairly priced right now with a P/E of 14. The stock has a market cap of $1.3 billion. CFO Kevin Stephenson spent $140,000 on shares on August 8. His purchase price was $70 per share.

Chesapeake Lodging Trust (NYSE:CHSP): This REIT is another one that had a large number of insider buys, including the CEO and CFO. It currently has a market cap of $456 million and a dividend yield of 5.7%. CFO Douglas Vicari joined six other insiders by recently buying shares. Vicari bought 4,000 shares on August 4 at an average price of $16.02.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.