Insider executives have an inside track on what is happening with a company. Sometimes, these take the form of hedge fund managers that have bought positions sizable enough to earn them a more involved stake than other investors would get; other times it is a vice president or a departmental director that gets the chance to profit on something forthcoming. Keeping an eye on insider executive purchases is usually a good sign of upcoming changes.
After taking a look at the SEC filings for October 3, 2011, 5 stocks garnered attention. It seems these insiders made a good choice. Not only did the stock value increase, but each increased enough for its investor to earn a tidy sum over the last week.
Apache Corp (NYSE:APA) is an independent energy company that explores, develops and refines crude oil and natural gas. Jon A. Jeppesen, the executive vice president, invested over $405,000 in the company when he bought 5,000 shares at $81.08 each. APA rose from $82.43 at open to $86.23 at close, an increase of over 4%. The company also has a dividend yield of .70% and a price to earnings ratio of just 8.70. Considering that Jeppesen just bought the stockless than 48 hours ago, he made $25,750 in two days.
Owens-Illinois, Inc. (NYSE:OI) makes glass packaging products for alcoholic beverages, food, tea, juice and pharmaceuticals. David H. Y. Ho, a director at the company, bought 1,210 shares on Wednesday, October 5. He paid $14.67 a share, for a total investment of $17,751. The investment may be small, but since his purchase, Ho has made more than $1,900, or a return over 10%. Another director at OI, Helge Wehmeier, also bought stock in the company on October 5, buying 1,809 shares at $14.67. After the stock closed on Thursday at $16.25, Wehmeier made over $2,800 on the position.
Kronos Worldwide, Inc. (NYSE:KRO) is a global manufacturer of titanium dioxide products. Senior Vice President of Development Douglas C. Weaver bought 3,280 shares at $15.19 a share on October 3, 2011, for a total investment just under $50,000. KRO closed the market on Thursday, October 6, at $19 a share, netting a gain of approximately $12,500 in three days – a return of 25%.
Compx International, Inc. (NYSEMKT:CIX) is worldwide manufacturing company that produces everything from locks to the slides in filing cabinets, flat screen mounts to boat gauges. Harold C. Simmons, a 10% owner in the company, bought 2,588 shares in the company on October 3, 2011 at $12.50 a share. CIX was trading at $13.78 a share at the close of business on Thursday, October 6, meaning a gain of over $3,300, approximately a 10% return.
SandRidge Energy, Inc. (NYSE:SD) is an oil exploration and production company. Its director, Roy T. Oliver Jr., bought 100,000 shares in the company at $5.93 a share. At close of business on October 6, SD was trading at $6.14 a share, earning Oliver a profit of $21,000. Oliver bought in SD on September 29, 2011. He reported his purchase on October 3.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.