We present here seven noteworthy insider buys sells from Friday's (April 27th, 2012) over 260 separate SEC Form 4 (insider trading) filings, as part of our daily and weekly coverage of insider trades. The filings are noteworthy based on the dollar amount sold, the number of insiders buying or selling, and based on whether the overall buying or selling represents a strong pick-up based on historical buying and selling in the stock (for more info on how to interpret insider trades, please refer to the end of this article):
Texas Instruments (NYSE:TXN): TXN is a global manufacturer of analog ICs and digital signal processors used in cell phones, navigation systems and PCs. On Friday, four insiders filed SEC Forms 4 indicating that they exercised options and sold the resulting 1.06 million shares for $33.7 million. Of these, one million shares were sold by Chairman & CEO Richard Templeton, who ended up with 1.30 million shares in direct and indirect holdings after the sale (not including derivative holdings). In comparison, insiders sold 1.56 million shares in the past year.
TXN just reported its Q1 (March) quarter last week, on Monday, beating analyst revenue and earnings (32c v/s 29c) estimates, and guiding Q2 revenues and earnings in-line. The street reaction to the beat has however been muted, with shares slightly down since the report based on a number of concerns. This includes a drop in wireless connectivity and OMAP sales, that is feeding worries that it is losing share to rival Broadcom (BRCM), an increase in inventory days, and over doubts whether the order pickup is based on end user demand or short-term based on inventory stocking at distributors. Its shares trade at 13-14 forward P/E and 3.3 P/B compared to averages of 15.3 and 3.4 for its peers in the general semiconductors group, while earnings are projected to grow modestly from $2.22 in 2011 to $2.38 in 2013.
Air Products & Chemicals (NYSE:APD): APD is a provider of industrial and specialty gases, chemicals and equipment to the metals, chemical, food, steel and other markets. On Friday, SVP Lynn Minella filed SEC Form 4 indicating that she exercised options to acquire 62,280 shares, and sold 58,008 of those shares for $5.1 million, ending with 53,459 shares in direct and indirect holdings after the sale (not including derivative holdings). In comparison, insiders sold 112,269 shares in the past year.
APD reported its Q2 (March) quarter last week, on Tuesday, missing analyst revenue and earnings estimates and lowering Q3 and FY EPS guidance. Its shares plummeted over 8% at the lows on Wednesday, and are currently trading over 4% lower since the report. The shares currently trade at 13-14 forward P/E and 2.9 P/B compared to averages of 11.2 and 2.8 for its peers in the diversified chemicals group, while earnings are projected to rise at a respectable 7.3% annual rate from $5.55 in 2011 to $6.39 in 2013.
Norfolk Southern Corp. (NYSE:NSC): NSC via Norfolk Southern Railway operates a 20,000-mile railroad in 22 states and D.C. On Friday, two insiders filed SEC Forms 4 indicating that they exercised options to acquire 48,527 shares and sold those and an additional 16,211 shares for $4.7 million, with EVP John Rathbone selling 48,527 shares and COO Mark Manion selling 16,211 shares. In comparison, insiders sold 0.16 million shares in the past year.
NSC reported a strong Q1 last week, on Tuesday after the market closed, beating analyst revenue and earnings estimates ($1.23 v/s $1.15); its shares gapped up the next day and are currently up over 4% since the report. They are undervalued, trading at 11-12 forward P/E and 2.4 P/B compared to averages of 14.2 and 2.2 for its peers in the rail transportation group, while earnings are projected to rise at a 10.8% annual rate from $5.35 in 2011 to $6.57 in 2013.
On top of these, some additional large insider sales on Friday include:
- a $5.5 million sale by four insiders at Seagate Technology (NASDAQ:STX), that manufactures hard disk drives for the enterprise, desktop, mobile computing and consumer electronics markets;
- a $2.3 million sale by three insiders at electric and gas utility Wisconsin Energy Corp. (NYSE:WEC), that provides services in WI and MI; and
- a $1.3 million sale by SVP Laura Brown at Grainger WW Inc. (NYSE:GWW), that distributes tools, lighting, plumbing and other maintenance products in the U.S., Canada, Japan, Mexico, India, Puerto Rico, China, Colombia and Panama;
Furthermore, insiders also reported a noteworthy buy on Friday in Rambus Inc. (NASDAQ:RMBS), that engages in the creation, design, development and licensing of patented innovations, technologies and architectures to digital electronics products and systems, in which Director Thomas Bentley purchased 20,000 shares for $97,899, in comparison to 63,224 shares purchased by insiders in the past year.
Credit: Fundamental data in this article were based on SEC filings, Zacks Investment Research, Thomson Reuters and Briefing.com. 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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