In the past week three companies have reported significant
insider buys as their prices have fallen to 52-week lows. It is
interesting to note these buys because they can help you find
undervalued, small-cap stocks that are oftentimes overlooked by
Wall Street. The following companies represent the insider buys
at 52-week lows with the highest total transaction amounts.
ARMOUR Residential REIT (
With share prices dropping about 30% this month, ARMOUR is
currently sitting at a 10-year low price. Both CEOs of ARMOUR
decide to take advantage of these lows and
increased their stake
in the REIT.
Co-CEO, President and Secretary Jeffery Zimmer bought 5,000
shares at $4.97 per share. This buy cost the Co-CEO a total of
$24,850. Zimmer now holds on to at least 66,858 shares. Since his
buy, the price per share has dropped an additional -0.4%.
Co-CEO and CIO Scott Ulm also added 5,000 shares to his stake. He
purchased these shares at an average price of $5.02 per share.
This cost Ulm a total of $25,100. Ulm now holds on to at least
139,725 shares of ARMOUR. Since his buy, the price has dropped an
ARMOUR has seen increased insider buying as the price has dropped
as seen in the graph below.
ARMOUR Residential Management invests mainly in hybrid adjustable
rate, adjustable rate and fixed rate residential mortgage backed
securities issued or guaranteed by a U.S. Government-chartered
analysis on ARMOUR
� The company's revenue has been in decline over the
past three years.
� ARMOUR has issued 2.6 billion worth of new shares in
the past three years. This usually results in the dilution of
� The company has issued $18.2 billion of debt in the
past three years.
� The dividend yield is at a 3-year high.
� The price is at a 10-year low.
� The P/E and P/B ratios are near 3-year lows of 5.16
and 0.65 respectively.
ARMOUR's decline comes after the company has expanded from $1.2
billion in assets at the end of 2010. ARMOUR is currently leading
the declines in mortgage REITs as concern grows that the central
bank will slow its bond-buying program as soon as this month.
With its recent decline in share prices, the Peter Lynch
Valuation Chart shows that ARMOUR currently appears to be
ARMOUR, which has about $22.5 billion of government-backed
home-loan debt, has lost over 16% this year, including reinvested
dividends, trailing all real estate investment trusts that buy
mortgage bonds in a Bloomberg index of 33 companies. The other
REIT that Zimmer and co-head Scott Ulm run-Javelin Mortgage
Investment-is the second-worst.
Despite the poor performance, Zimmer wrote in an email-"This
year, we are likely to be the number one return on equity player
as far as taxable REIT income goes."
ARMOUR Residential has a market cap of $1.86 billion; its shares
were traded at around $4.95 with a P/E ratio of 5.30 and a P/S
ratio of 3.80.
Carnival Corp (
Carnival has been under a lot of pressure from the media this
past year. With the company's ships going up in flames, stranding
passengers on a boat with no electricity and a variety of
mechanical issues, it's no surprise that the company's share
price has dwindled to a near 52-week low. Taking advantage of
this low in price, Director Randall Weisenburger made a rather
large buy of company stock.
Weisenburger added 40,000 shares at $32.95 per share. This buy
cost the director a total of $1,318,000. Weisenburger now owns at
least 78,477 shares of company stock. Since his buy, the price
per share of Carnival has dropped an additional -2.28%.
Weisenburger's buy notes the first insider buy for Carnival Corp
Carnival is a cruise company and one of the largest vacation
companies in the world. It has a portfolio of widely recognized
cruise brands and is a provider of cruises to all major vacation
destinations. Its mission is to deliver exceptional vacation
experiences through some of the world's best-known cruise brands
that cater to a variety of different geographic regions and
The analysis on Carnival reports:
� The revenue has been in decline over the past year.
� The operating margin has been in a 5-year decline.
The average rate of decline per year is -11.2%.
� The CCL stock dividend yield is close to a 3-year
� The company's P/E and P/B ratio is nearing 1-year
lows of 15.77 and 1.07 respectively.
According to the Peter Lynch Valuation, Carnival appears to be
Carnival Corporation has a market cap of $26.24 billion; its
shares were traded at around $32.20 with a P/E ratio of 17.00 and
P/S ratio of 1.60. The dividend yield is 3.10%. The company had
an annual average earnings growth of 3.7% over the past ten
There are currently thirteen gurus that hold stake in Carnival.
Click here to see the holding history of all of the gurus.
Silver Bay Realty Trust (
Recently incorporated Silver Bay Realty Trust reported three
insider buys last week as its share prices dropped beneath its
Director Brian Taylor made two different buys, adding a total of
5,568 shares. The shares traded at an average price of $17.93 per
share. These buys cost the director a total of $99,696. Taylor
now owns 35,449 shares of Silver Bay. Since his most recent buy,
the price per share has dropped an additional 1.4%.
General Counsel and Secretary Timothy O'Brien bought 3,000 shares
of Silver Bay at $18.06 per share. This cost O'Brien a total of
$54,180. He now owns 7,714 shares of company stock. Since his buy
the price per share has dropped an additional 2.27%.
Silver Bay Realty focuses on the acquisition, renovation, leasing
and management of single-family properties for rental income and
long-term capital appreciation. The company's primary source of
revenue comes from the leasing of single-family homes in Arizona,
California, Florida, Ohio and Texas.
Silver Bay has a market cap of $687.8 million; its shares were
traded at around $17.65 with a P/S ratio of 183.40.
There are currently four gurus holding shares of Silver Bay
Realty Trust, with Steven Cohen holding the most stake in the
company. Cohen currently holds 5.77% of shares outstanding. To
view the gurus' holding history of Silver Bay, click here.
You can view all insider trades of companies at 52-week lows by
using our all-in-one screener. To view all insider buys and
sells in the past week, click here.
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