Higher Rates Fail To Scare Away These Companies’ Insiders

W. R. Grace & Co (NYSE:GRA) had one of its executives make a sizable purchase this week. Keith N. Cole, Vice President, Government Relations and EHS (Environment, Health, and Safety), snapped up 3,000 shares on Monday at $93.5 apiece and currently holds 5,344 shares, which include 2,344 unvested shares. The producer of specialty chemical and materials has seen its shares gain nearly 3% and the company is poised to grow should analysts’ earnings estimates be accurate. The company generated sales of $2.29 billion for the nine months that ended September 30, down by 6% year-on-year. This decrease was mainly attributable to unfavorable currency translation and depressed sales volumes, which were in turn offset by improved pricing. W. R. Grace & Co’s GAAP earnings per share (EPS) for the nine-month period of 2015 totaled $1.69, down from $3.40 reported a year ago. Nonetheless, its adjusted EPS (adjusted for costs related to Chapter 11 and other costs that are not representative of business trends) increased to $3.38 from $3.06 year-on-year. A total of 47 hedge fund from our database were invested in the company at the end of the third quarter, accumulating 41.20% of its outstanding common stock. John Griffin’s Blue Ridge Capital held its position in W. R. Grace & Co (NYSE:GRA) unchanged during the third quarter at 3.19 million shares.

Spirit Airlines Incorporated (NASDAQ:SAVE) had the President and CEO buying shares this week. B. Ben Baldanza reported buying a block of 5,000 shares on Monday for $42.59 each. After the recent purchase, the CEO currently holds a stake of 176,165 shares, which includes 73,576 restricted stock units. The ultra-low-cost airline reported operating revenues of $574.8 million for the third quarter of this year, up $55.1 million or 10.6% year-over-year. This increase was mainly attributable to increased traffic, which was in turn offset by lower passenger yields mainly due to higher competition from domestic network carriers that substantially discounted fare prices. A number of airline companies have announced initiatives aimed at strengthening market share against budget airlines like Spirit Airlines, including the sale of bare-bones tickets. Spirit’s total revenue per available seat mile totaled $0.1027 for the third quarter, which marked a decrease of 17.5% year-on-year. Meanwhile, the shares of this ultra-low-cost carrier are 45% in the red thus far in 2015 and trade at a very appealing P/E ratio of 10.07. Despite the fast-increasing competitive pressures in the industry, some financial hubs have great expectations about the company’s future prospects. For instance, Cowen recently reiterated its ‘Outperform’ rating on the stock and raised its price target to $55 from $50, which yields an upside of at least 32%. Israel Englander’s Millennium Management added a 737,402-share position in Spirit Airlines Incorporated (NASDAQ:SAVE) to its portfolio during the September quarter.

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