Top Insiders Report $100,000 Buys
Over the past seven days we’ve seen several CEOs making sizeable buys as well as several coming from the companies’ CFOs. It is interesting to note when a CEO, or even a CFO, buys because these insiders supposedly have the most intimate knowledge of their company's workings.
The following two company leaders each come from various sectors of the market, but they each reported insider buys with transaction amounts valued at over $100,000. According to GuruFocus Insider Data these are the largest CEO buys occurring over the past week.
Waterstone Financial (WSBF)
Over the past week, the CFO of Waterstone Financial, Allan Hosack made a sizeable buy back into his company’s stock. The insider added 15,500 shares of the company’s stock at $11.46 per share. This buy cost the CFO a total of $177,630. Since this buy the price per share has increased an additional 0.7%. Hosack now holds on to at least 15,500 shares of the company’s stock.
This is the last insider transaction for Waterstone since the company’s COO and General Counsel made a minor sell during June of 2014. The chart below shows that Waterstone Financial is not a highly active insider company and that its price per share has been on an uptrend since 2012.
Waterstone Financial is a one-bank holding company with two operating segments - community banking and mortgage banking. The bank is mainly engaged in the business of attracting deposits from the general public and using such deposits to originate real estate, business and consumer loans.
Waterstone Financial’s historical revenue and net income:
The analysis on Waterstone reports that the company has issued $19.442 million of debt over the past three years, its revenue per share has been in decline over the past year and its Piotroski F-Score is low. The analysis also notes that the company’s price is near a 5-year high and that its P/E and P/S ratios are also near historical highs.
Jim Simons (Trades, Portfolio) and Michael Price (Trades, Portfolio) are currently the only gurus that hold a stake in Waterstone Financial.
The Peter Lynch Chart suggests that the company is currently overvalued:
The company recently released its second quarter results which reported:
- Net income of $3.8 million, up from $1.9 million last quarter
- Net income per diluted share of $0.11 in comparison to $0.14 last year
- Total nonperforming assets stayed constant at 3.78%
Waterstone Financial has a market cap of $394 million. Its shares are currently trading at around $11.45 with a P/E ratio of 37.10 and a P/S ratio of 3.40. The dividend yield of Waterstone Financial is at 0.90%.
Bob Evans Farms (BOBE)
There were two insiders making buys into Bob Evans Farms this week. These insiders come from the top rings of the company’s management and include CEO and COB Steven Davis as well as the Executive VP of Supply Chain Management Richard Hall.
On Aug. 29, EVP Richard Hall added a minor 356 shares to his stake. The insider bought these shares at $43.73 per share for a total transaction amount of $15,568. Since this buy the price per share has dropped approximately -1.74%. Hall now holds on to at least 708 shares of the company’s stock.
The more sizeable buy came from Bob Evans’ CEO Steven Davis who added 15,000 shares to his holdings on Sept. 2. The CEO added these shares at $43.12 per share for a total transaction amount of $646,800. Since his buy the price per share has fallen a minor -0.35%.
As can be seen on the chart above, these buys come as the price per share has dropped to near its 52-week low.
Bob Evans is a full-service restaurant company that operates Bob Evans Restaurants. It is also a producer and distributor of pork sausage product and complementary home-style refrigerated side dishes and frozen food items under the Bob Evans, Owens and Country Creek brand names.
Bob Evans Farms’ historical revenue and net income:
The analysis on Bob Evans reports that the company’s revenue per share has been in decline over the past five years, it has issued $327.053 million of debt over the past three years and its cash flow has severe divergence from reported net income. On the other hand, it also notes that the company’s operating margin is expanding, its dividend yield is near a 5-year high and its P/S ratio is near a 1-year high.
There are currently five gurus that hold a position in Bob Evans. Check out their holding histories here.
The company reported its first quarter fiscal 2015 results which highlighted:
- Net sales of $326.3 million, a decrease of $3.1 million from last year.
- The company’s $100 million repurchase authorization increased to $150 million.
- Company reaffirms fiscal 2015 diluted EPS range of $1.90 to $2.20
The Peter Lynch Chart suggests that the company is currently overvalued:
Bob Evans Farms has a market cap of $1.02 billion. Its shares are currently trading at around $43.26 with a P/E ratio of 46.30 and a P/S ratio of 0.80. The company’s dividend yield is at 2.90%, and it had an annual average earnings growth of 2.80% over the past ten years.
Check out more CEO and CFO buys on the GuruFocus Insider Trades Page here.
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