Analysis Of Thursday's Noteworthy Insider And Institutional 5% Ownership Filings

by: GuruFundPicks

Insiders reported on Thursday that they bought and sold stock in over 180 separate transactions in over 100 different companies. These transactions have to be reported within two days of the trade, so the transactions occurred sometime earlier this week. We culled through these 180 or so insider buys and sells (based on SEC Forms 3, 4, and 5 filings), as part of our daily and weekly coverage of insider trades, and present here the most notable trades reported on Thursday; notable based on the dollar amount sold, the number of insiders selling, and based on whether the overall buying or selling represents a strong pick-up based on historical buying and selling in the stock. Also, included below are the most significant SEC 13-D/G institutional filings on Thursday, that are required to be filed within ten days (for more info on how to interpret insider trades, and on Forms 13-D and 13-G, please refer to the end of this article):

DHT Holdings Corp. (NYSE:DHT): DHT operates a fleet of double-hull crude oil tankers on international routes. On Thursday, New York-based activist hedge fund MMI Investments, run by Clay Lifflander, filed SEC Form 13 D/A indicating that it now holds 1.3 million or 2.0% of outstanding shares, a decrease of 4.7 million shares from the 6.0 million shares they held at the end of Q3, and also a decrease from an earlier 13D/A filing on December 14th when they indicated holding 4.4 million shares.

MMI investments, described generally as having the "buyout touch" because of its having owned positions in several companies prior to their buyout, has been reportedly liquidating its investments in several portfolio companies and winding down. DHT has been in a free fall, down over 80% in the past year, and it trades at a current 3-4 P/E on a TTM basis, but earnings are projected to collapse from 24c in 2011 to 10c in 2012 to 4c in 2013.

Pharmacyclics Inc. (NASDAQ:PCYC): PCYC is a development stage biotech company that is focused on discovering and developing innovative small-molecule drugs for the treatment of cancer and immune mediated diseases. On Thursday, 10% owner New York-based biotech-focused hedge fund Baker Bros. Life Sciences Capital, with over $2.3 billion in equity assets per its latest 13-F Q3 filing, filed SEC Form 4 indicating that it purchased 599,590 shares for $10.8 million, increasing its holdings to 8.6 million shares.

This is an increase from the 7.0 million shares that Baker Bros. reported owning at the end of Q3 per its 13-F filing. PCYC shares have been among the strongest performers in the biotech sector, up almost four-fold in the past year, and now trading at ten-year highs. Even so, analysts are still optimistic about the prospects for the company, with a mean target of $20. Also, last month, Wedbush added PCYC to its "Best Ideas" list, raising the price target to $25 from $17, still well above Friday's closing price of $18.74.

HCA Holdings Inc. (NYSE:HCA): HCA is a leading provider of health care services, operating a network of hospitals and freestanding surgery centers in the U.S. and U.K. On Thursday, Bank of America Corp. (NYSE:BAC) filed SEC Form 4 indicating that it sold 171,623 shares for $4.4 million, ending with 3.4 million shares after the sale. At the end of Q3, Bank of America reported holding 7.1 million shares, which was a decrease of 80.8 million shares from the prior quarter. HCA shares trade at 7-8 forward P/E compared to the 9.5 average for its peers in the hospital group, while earnings are projected to rise at a 17.5% annual rate from $2.49 in 2010 to $3.44 in 2012.

Dana Holding Corp. (NYSE:DAN): DAN is a manufacturer of modules, axles, chassis, suspension and drive-shafts for automotive OEMs. On Thursday, hedge fund Owl Creek Asset Management, headed by Jeffrey Altman, with over $3.1 billion in equity assets per its latest 13-F Q3 filing, filed SEC Form SC 13G/A indicating that it holds 8.0 million or 5.3% of outstanding shares, an increase of 0.3 million shares from the 7.7 million shares it held at the end of Q3. DAN trades at a discount 7-8 forward and 2.2 P/B compared to the averages of 8.7 and 2.7 for its peers in auto/truck OEM group.

KeyCorp (NYSE:KEY): KEY operates as a holding company for KeyBank National Association that provides various investment management, retail and commercial banking, consumer finance, and investment banking products to corporate, individual and institutional clients via 1,033 branches in 14 states. On Thursday, Director William Gisel filed SEC Form 4 indicating that he bought 2,600 shares for over $20,000, a new position for him. Although small, the buying is significant in that it is the first buy in over five months, and one of only three buys by insiders this year; and overall, insiders bought a total of 24,600 shares in the past year. KEY trades at 9-10 forward P/E and 0.8 P/B compared to averages of 9.2 and 0.9 for its peers in the major regional banks group.

Interdigital Inc. (NASDAQ:IDCC): IDCC designs and develops digital wireless technology solutions, and it also holds patents related to the fundamental technologies that enable wireless communications. On Thursday, three insiders, CEO William Merritt (6,828 shares), Director Steven Clontz (10,000 shares), and EVP Janet Point (1,500 shares), filed SEC Forms 4 indicating that they bought a total of 18,328 shares for $0.67 million. IDCC gapped down severely last week, down 17.2% for the week, after announcing on Monday after the market-close that it had concluded its "review of strategic alternatives", but failing to produce a sale; and this despite a positive Q4 pre-announcement on Tuesday before market-open in which it beat both consensus revenue and earnings estimates. The stock currently trades at 18-19 forward P/E and 3.7 P/B compared to averages of 31.6 and 3.2 for its peers in the wireless equipment group, while earnings are projected to rise modestly from $1.91 in 2011 to $2.02 in 2012.

On top of these, some additional large insider trades last week included a $7.7 million sale, pursuant to a 10b5-1 plan, by COO Arne Sorenson at Marriott International Inc. (NYSE:MAR); a $1.2 million sale, pursuant to a 10b5-1 plan, by Director Douglas Pasquale at healthcare REIT Ventas Inc. (NYSE:VTR); a $5.7 million sale by two insiders, CEO Steven Berglund (79,999 shares) and VP Bryn Fosburgh (46,185 shares), pursuant to 10b5-1 plans at GPS, laser and optics-based advanced positioning technologies provider Trimble Navigation Ltd. (NASDAQ:TRMB); a $1.0 million sale, pursuant to a 10b5-1 plan, by Director Raymond Dittamore at global biotech research tools and reagents provider Life Technologies Corp. (NASDAQ:LIFE).

Credit: Fundamental data in this article were based on SEC filings, I-Metrix® by Edgar Online®, Zacks Investment Research, Thomson Reuters and The information and data is believed to be accurate, but no guarantees or representations are made.

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

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