Insiders may sell shares for any number of reasons, but there
is really only one reason insiders buy shares of a company --
they believe the stock price will move higher and they want to
profit from it. Pullbacks and sell-offs provide a perfect
opportunity for investors who have faith in a company to snap up
shares. Here are some stocks that have seen insider buying
recently.
Center Bancorp
(NASDAQ:
CNBC
): Three directors and the corporate secretary have bought up
more than 79,000 shares in the past week. That was worth more
than $80,000. The market cap of his New Jersey-based regional
bank is $163.3 million. Its P/E and PEG ratios are less than the
industry average and the dividend yield is 1.2%. The share price
is up more than 2% since the beginning of the year despite a
recent pullback. Over the past six months, the stock has
underperformed competitors New York Community Bancorp (NYSE:
NYB
) and Valley National Bancorp (NYSE:
VLY
).
See also:
Center Bancorp Announces Appointment of Chief
Lending Officer
.
Cracker Barrel Old Country Store
(NASDAQ:
CBRL
): Sardar Biglari purchased 51,000 more shares this week. That
was worth more than $2.8 million. The Texas-based activist
investor has spent more than $60 million on the stock so far this
year. Cracker Barrel has a market cap of $1.3 billion. Its P/E
ratio is less than the industry average and the return on equity
is 28.3%. Shares have traded mostly between $55 and $57 since
late February, but the stock has outperformed competitors Denny's
(NASDAQ:
DENN
) and IHOP parent DineEquity (NYSE:
DIN
) over the past six months.
Glimcher Realty Trust
(NYSE:
GRT
): A director and an executive vice president of this Columbus,
Ohio-based REIT purchased 12,000 shares, worth about $205,000,
this past week. It has a market cap of $860.7 million and a
dividend yield of 3.9%. It is expected to report year-over-year
EPS and sales growth for the fourth quarter on April 25. The
share price is up about 11% year to date and less than 3% below
the 52-week high. But over the past six months, the stock has
underperformed competitors such as CBL & Associates (NYSE:
CBL
) and General Growth Properties (NYSE:
GGP
).
See also:
Glimcher Realty Trust Announces Pricing of 20
Million Common Shares
.
Ladenburg Thalmann Financial Services
(NYSE:
LTS
): Some 80,000 shares, worth more than $147,000, were purchased
recently by the CEO, COO, two directors and an executive VP. The
Miami-based investment bank has a market cap of $318.5 million
and posted strong Q4 results due to an acquisition. The share
price has fallen more than 41% from the 52-week high back in late
December, but it is still more than 39% higher than a year ago.
Over the past six months, the stock underperformed competitors
such as LPL Investment Holdings (NASDAQ:
LPLA
), as well as the broader markets.
See also:
Biographical Profiles in Investing: Dr. Phillip
Frost
.
Opko Health
(NYSE:
OPK
): The chairman, vice chairman and an executive VP have bought
more than 150,000 shares in the past week. The chairman has been
frequently buying shares since November. This Miami-based health
care company has a market cap of $1.4 billion. Short interest is
19.8% of the float. Shares have traded mostly between $4.50 and
$5.50 since October, and the share price is about 3% lower that
at the beginning of the year. Over the past six months, the stock
has underperformed competitor Allergan (NYSE:
AGN
) and the broader markets.
See also:
Opko Health Acquires Chilean Pharmaceutical
Company
.
Paramount Gold and Silver
(NYSE:
PZG
): The CEO, CFO and a beneficial owner recently purchased more
than 1.2 million shares, worth over $2.5 million. The mining
company recently agreed to issue 8.9 million shares of common
stock in a private placement transaction to fund its current
exploration and development plans in Mexico and the U.S. Shares
jumped more than 9% in the past week, following the announcement,
but the share price is still about 37% lower than a year ago. The
stock has outperformed competitors such as Allied Nevada Gold
(NYSE:
ANV
) over the past six months.
See also:
Paramount Gold and Silver Finds Exceptional
Grades and Widths
.
ACTION ITEMS:
Bullish:
Investors interested in exchange traded funds focused on
insider sentiment might want to consider the following
trades:
- Direxion All Cap Insider Sentiment Shares (NYSE:
KNOW
) is more than 12% higher year to date.
- Guggenheim Insider Sentiment (NYSE:
NFO
) is more than 12% higher year to date.
Bearish:
Traders may prefer to consider these alternative positions
to some of the stocks listed above:
- MAKO Surgical (NASDAQ:
MAKO
) is up more than 65% year to date.
- Ruth's Hospitality Group (NASDAQ:
RUTH
) is up about 47% year to date.
- Pennsylvania Real Estate Investment (NYSE:
PEI
) is up about 44% year to date.
- Molycorp (NYSE:
MCP
) is up more than 38% year to date.
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