3 Companies Where Insiders Were Loading Up On Shares Last Week

Both insider buying and selling activity weakened last week relative to the previous one, as U.S equity markets had a holiday-shortened session on Friday after being closed on Thursday for the Thanksgiving holiday. The volume of insider buying halved week-over-week, while the volume of insider selling slightly diminished over the same period. As a result, last week’s ratio of insider selling over insider buying increased significantly relative to the prior one. Insider buying activity is generally perceived as a bullish sign, as it points to insiders’ confidence in the future performance of their companies. For that reason, this article will disclose and discuss the insider buying activity registered at three companies and will attempt to pinpoint specific firm-related developments that might have propelled insiders to purchase shares.

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Universal Insurance Holdings Inc. (NYSE:UVE) had three different insiders acquire stock last week. To start with, Secretary and Chief Administrative Officer Stephen J. Donaghy snapped up 19,705 shares on Wednesday for $20.30 each, boosting his overall holdings to 459,242 shares. Frank Wilcox, Chief Financial Officer and Principal Accounting Officer since October 2013, purchased 2,300 shares on Tuesday at $21.23 apiece and currently holds 94,324 shares. Last but not least, Director Michael A. Pietrangelo bought 2,000 shares on the same day at a weighted average price of $20.26, lifting his stake to 61,248 shares.

The shares of the vertically integrated insurance holding company plummeted by 31% on November 17 after Anthony Bozza of Lakewood Capital Management pitched the company as a short opportunity at the Robin Hood Investor’s Conference. Universal Insurance Holdings Inc. (NYSE:UVE)’s stock was up by 46% for the year through November 16 and is now 1% in the red year-to-date. It is also worth pointing out that the stock is trading at an eye-catching trailing price-to-earnings ratio of 7.38, which is significantly below the average of 23.18 for the S&P 500 benchmark. Meanwhile, 18 hedge funds from our database were invested in the company at the end of the third quarter, stockpiling a mere 5.60% of the company’s outstanding shares. Ron Bobman’s Capital Returns Management owns 262,077 Universal Insurance shares as of September 30.

The second page of this daily insider trading article discusses the insider buying witnessed at VirnetX Holding Corporation (NYSEMKT:VHC) and Hercules Technology Growth Capital Inc. (NYSE:HTGC).

Let’s now refocus our discussion on the insider buying activity at VirnetX Holding Corporation (NYSEMKT:VHC). Director Robert D. Short III purchased 3,004 shares on November 24 at a weighted average cost of $2.79, lifting his stake to 56,384 shares. The Director also holds an indirect ownership stake of 50,332 shares through the Short Revocable Living Trust. The developer of software and technology solutions for securing real-time communications over the Internet has seen its shares decline by 51% since the beginning of the year. The company’s business strategy involves licensing its patents and technology to other companies, so its revenue is derived from intellectual property licensing fees and royalties. VirtnetX currently owns 47 U.S and 65 foreign patents with over 75 pending applications. Only five smart money investors tracked by Insider Monkey had positions in the company at the end of September, accumulating 1.00% of its outstanding common stock. D. E. Shaw & Co. L.P., founded by David E. Shaw, was among the largest equity holders of VirnetX Holding Corporation (NYSEMKT:VHC) within our database, owning 300,108 shares.

Lastly, we will take a meticulous look at the insider trading registered at Hercules Technology Growth Capital Inc. (NYSE:HTGC) last week. Director Thomas J. Fallon reported acquiring 10,000 shares last Monday at a weighted average price of $11.16, enlarging his stake to 20,937 shares. The specialty finance company that focuses on offering senior secured loans to high-growth, innovative venture capital-backed companies had a great third quarter in terms of financial performance. Hercules’ third-quarter net investment income added up to $23.6 million, an increase of 40.6% quarter-over-quarter. The company also pays out a quarterly cash dividend of $0.31, offering a current dividend yield of 10.92%. The number of smart money investors with stakes in the specialty finance company declined to 13 from 14 during the September quarter, with them aggregately owning 4.80% of the company’s shares. Lee Munder Capital Group, founded by Lee Munder, added a 1.13 million-share position in Hercules Technology Growth Capital Inc. (NYSE:HTGC) to its portfolio during the third quarter.

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