Fresh Del Monte, BlackRock and Other Stocks Insiders Are Buying
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.
Avanir Pharmaceuticals (NASDAQ: AVNR): The CEO, a vice president and a director purchased 18,000 shares this week. That was worth more than $47,000. This California-based company focuses on therapeutic products for the treatment of central nervous system disorders. It has a market cap of $375.5 million. Short interest is 19.6% of the float. The share price has dropped more than 8% in the past month but is still up about 38% year to date. The stock has underperformed the likes of Bristol-Myers Squibb (NYSE: BMY) and Eli Lilly (NYSE: LLY) over the past six months.
BlackRock (NYSE: BLK): Some 11,500 shares, worth more than $2.2 million, were purchased last week by one of the investment manager's directors. The New York-based company has a market cap of $35.3 billion and posted better-than-expect Q4 EPS. Its long-term EPS growth forecast is 16.3% and the dividend yield is 3.1%. The share price pulled back a bit this past week but is still more than 11% higher year to date. Over the past six months, the stock outperformed competitors State Street (NYSE: STT) and UBS (NYSE: UBS), as well as the broader markets.
Builders FirstSource (NASDAQ: BLDR): Two directors and Warburg Pincus have bought up more than 374,000 shares recently. That was worth more than $1.1 million. The market cap of his building products manufacturer is $307.9 million and its long-term EPS growth forecast is 15.0%. It posted a narrower-than-expected loss in the most recent quarter. Shares have traded mostly between $2.80 and $3.20 since early February, but the share price is up almost 56% year to date. Over the past six months, the stock has outperformed the broader markets.
Cenveo (NYSE: CVO): The CEO of this diversified printing company purchased 46,000 shares worth more than $200,000 this week. Other insiders bought shares throughout December. Cenveo has a market cap of $297.9 million and an operating margin better than its industry average. It posted better-than-expected Q4 EPS. The share price is up more than 38% year to date but still down more than 31% from the 52-week high. Over the past six months, the stock has outperformed competitors such as Quad/Graphics (NYSE: QUAD) and R.R. Donnelley (NASDAQ: RRD).
Fresh Del Monte Produce (NYSE: FDP): One director recently purchased more than 82,900 shares, worth over $7 million. Shares tumbled in late February after the company posted a wider fourth-quarter net loss due in part to economic weakness in Europe. The company has a forward earnings multiple that is less than the industry average P/E. Its dividend yield is 1.8%. Shares have traded between $22 and $23 since the decline and are down more than 10% year to date. The stock has outperformed Chiquita Brands (NYSE: CQB) and Dole Food (NYSE: DOLE) over the past six months.
See also: Fresh Del Monte Posts Q4 Loss
Opko Health (NYSE: OPK): The CEO has been frequently scooping up batches of between 5,000 and 500,000 shares since November. This Miami-based health care company announced last week it bought a stake in BioZone Pharmaceuticals. Opko has a market cap of $1.4 billion. Shares have traded mostly between $4.50 and $5.50 since October. The share price has pulled back more than 8% in the past month. Over the past six months, the stock has outperformed competitor Allergan (NYSE: AGN), but its performance has been in line with the S&P 500.
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 about 10% higher year to date.
Traders may prefer to consider these alternative positions to some of the stocks listed above:
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