This past week we have seen a significant increase in CEOs
spending some big money on their own companies. GuruFocus
research points out that top corporate executives like the CEOs
and CFOs are the best performers when studying insider trading.
These executives are expected to be the best informed about their
companies and in result, their trades have turned out to be the
The following four companies reported insider buys coming from
their CEOs with transaction amounts totaling over $100,000. These
companies come from various sectors of the market, and all of
their insider buys have been reported as the companies release
their first quarter financials.
CYS Investments (
Coming as the price has hit a 52-week low, CYS Investments
reported a costly
coming from the company's Chairman, CEO, CIO and President Kevin
On May 6, Grant added a total of 30,058 shares at an average
price of $11.96 per share. This cost the CEO a total of $359,494.
Since Grant's buy, share prices have risen 0.75%. The CEO now
holds on to at least 555,970 shares of CYS Investments.
Another insider, Director Jeffrey Hughes, bought 50,000 shares of
CYS on May 7. His shares traded at $12 for a total transaction
amount of $600,000. He now holds on to 174,869 shares of the
These two insider buys come as the company's price nears a
three-year low price of $11.63.
on CYS shows that the company's dividend yield is close to a
two-year low. The company has offered quarterly dividends since
2009. Its most recent dividend (declared March 21) was $0.32 per
share, dropping from the $0.92 per share dividend declared in
December 2012. The company has also seen a decline in per share
revenue, operating margin and gross margin for the past five
CYS Investments is a finance company that invests on a leveraged
basis in residential mortgage securities for which the principal
and interest payments are guaranteed by the Federal National
Mortgage Association. The company has elected to be taxed as an
The company recently announced its
first quarter 2013 results
� GAAP net loss of $17.7 million, or $0.10 per diluted
� Net realized gain from investments of $46.7 million
� Operating expenses equal to 0.94% of average net
� Net asset value per common share of $12.87 per share
after declaring a dividend of $0.32 on March 31.
George Soros and Jeremy Grantham hold shares in CYS Investments.
To see the shares these gurus hold, click here.
With its shares down 0.66%, CYS Investments trades at $12.03.
Walter Energy (
Walter Energy reported a cluster buy this week, occurring on May
6. This buy was led by the company's CEO and CFO. Walter Energy's
CEO Walter Scheller made the largest buy of the day adding a
total of 8,585 shares at an average price of $17.57 per share.
This transaction cost him $150,838. Since his buy, share prices
have gone up 8.88%. Scheller now holds on to 42,291 shares of
Four other insiders made buys on May 6. These insiders included
Director David Beatty, Senior VP and CFO William Harvey, Director
Mary Henderson and General Counsel and Secretary Earl Doppelt.
These insiders added a combined total of 17,000 shares at an
average price of $17.59 each. Their combined total purchase price
These buys came as the company's price hit a three-year low.
Also, as the chart above shows, the insiders at Walter Energy
have significantly increased their stake in the company as the
price continues to drop.
The analysis on Walter Energy shows that the company has issued
$2.3 billion of debt in the past three years. The company has
also seen a decline in the per share revenue during the past
On April 25, Walter Energy declared a $0.125 quarterly dividend
per common share payable on June 7 to shareholders of record as
of the close of business May 10, 2013. Walter has offered a
quarterly dividend every year since its IPO in 1999.
Walter Energy is a producer and exporter of metallurgical coal
for the global steel industry. The company also produces thermal
coal, anthracite, metallurgical coke and coal bed methane gas.
The company maintains 15 mines in 3 countries. They produced 11.7
million metric tons of coal with sales of $2.4 billion.
Most recently, Guru Steven Cohen increased his position in Walter
Energy by over 101%. He now owns 3,348,472 shares of the coal
Six other gurus hold stake in Walter Energy. To see the full list
of these gurus and the stake they hold, click here.
With its shares down 1.82%, Walter Energy trades at $18.88.
Pitney Bowes Inc. (
Pitney Bowes reported the largest insider buy this past week as
the company's CEO, Marc Lautenbach, added over 60,000 shares to
his stake. Lautenbach bought 66,000 shares on May 7 at an average
price of $15.36 per share. This cost the CEO a total of
$1,013,760. The shares are currently trading up 0.59% since this
buy. Lautenbach's buy marks the first insider transaction for the
company since May 2012.
This buy came as the price of the company is nearing a 52-week
high price of $15.90.
Lautenbach made his buy a week after the company released its
first quarter financials which reported:
� A revenue of $1.2 billon
� Adjusted EPS from continuing operations of $0.42 per
� GAAP EPS from continuing operations of $0.34 per
� A first quarter FCF of $107 million
On April 30, Pitney Bowes declared a reduced second quarter
dividend of $0.188 per share. This represents a 50% cut from its
previous quarterly dividend; it also represents the first time
since 1982 that the company has decreased its dividend yield. The
company cut the dividend in half in order to provide additional
capital to invest in operations. With this most recent cut, the
company's dividend yield is at a 10-year low.
Pitney Bowes provides business communications software, mailing
systems and services that integrate physical and digital
communications channels. Pitney Bowes helps other companies grow
through advanced customer communications management. The company
is best known for its production of postage meters.
The GuruFocus analysis on Pitney Bowes shows that the company's
per share revenue has been in decline for the past five years. It
also notes its operating margin has also been in a 5-year
decline. The average rate of decline is at -8.3% per year.
There are nine gurus that currently hold stake in Pitney Bowes.
With its shares up 1.42%, Pitney Bowes trades at $15.67.
Genworth Financial (
This week Genworth Financial reported that their President and
CEO Thomas McInerney bought 10,000 shares of the company's
stock.McInerney bought 10,000 shares on May 7 at $10.89 per
share. This cost the CEO a total of $108,900. Since this buy the
price of the stock is down -1.84%.
Genworth Financial's first quarter earnings reports:
- A net income of $103 million, or $0.21 per diluted share.
- Net investment losses, net of tax and other adjustments were
$28 million compared to the net investment gains of $17 million
in the first quarter of 2012.
- The net operating income was at $151 million compared to $17
million in the first quarter of 2012.
The company also announced that they would be selling their
Wealth Management business for $412.5 million.
Genworth Financial is a Fortune 500 company with more than $100
billion in assets and maintains operations in 25 countries.
The company is an insurance company headquartered in the US, with
an expanding international base, serving the life and lifestyle
protection, retirement income, investment and mortgage insurance
needs of more than 15 million people. The company operates out of
three segments: retirement and protection, international and U.S.
There are fourteen gurus that currently own shares of Genworth
With its shares down 2.15%, Genworth Financial trades at $10.45.
The insider buys for CEOs seen above are only the four
highest costing CEO buys of the week. To see the complete list
of CEOs making insider buys and sells, click here.
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