Insider Buying Metric Points To Strong Future Prospects At These 3 Companies

Gladstone Investment Corporation (NASDAQ:GAIN) had an executive buy stock this week. Chairman and Chief Executive Officer David J. Gladstone snapped up 90,000 shares on Monday at a cost of $7.53 per share, boosting his holding to 616,973 shares. The business development company that primarily invests in debt and equity securities of established private businesses in the U.S. has invested $470.4 million in 28 new debt and equity deals since October 2010. The company’s total investment income for the third quarter totaled $13.74 million, up 51.5% year-over-year. This increase was attributable to an increase in both interest income and other income, mainly owing to the increased sized of its portfolio. Meanwhile, shares of Gladstone are nearly 10% in the green year-to-date and are trading at a cheap forward price-to-earnings ratio of 10.16, which compares with the average of 17.35 for the companies included in the S&P 500 Index. Nonetheless, this valuation metric solely relies on the accurateness of analysts’ earnings estimates. Moreover, the company’s current market price is trading below the net asset value of $9.05 per share as of September 30, which hinders the company’s ability to raise additional capital without stockholder approval. Israel Englander’s Millennium Management owns a mere 63,000 shares in Gladstone Investment Corporation (NASDAQ:GAIN) as of September 30.

Last but not least, Mobile Mini Inc. (NASDAQ:MINI) had a director make two big purchases this week. Director Michael L. Watts purchased a block of 4,586 shares and one of 10,800 shares on Tuesday at a weighted average price of $31.47. After the recent purchases, the Director holds an ownership stake of 67,697 shares. The provider of portable storage and specialty containment solutions has seen its shares decline by 22% this year. The company mainly focuses on renting its portable storage units rather than selling them (approximately 93% of its revenues are generated from rental revenues), as this strategy offers predictable revenue streams. In the meantime, Mobile Mini’s business is highly correlated with the overall health of the economy, while roughly 41% of its rental revenue is derived from the construction industry. Hence, the company is anticipated to grow in the upcoming years, thanks to the high expectations on the construction sector. Mobile Mini generated total revenue of $396.26 million for the nine-month period that ended September 30, up from $322.26 million generated for the same period a year ago. Mobile Mini had $663.4 million in debt on September 30, but the company recently announced that it had entered into an amended revolving credit facility at reduced interest rates. The new $1.0 billion facility offers increased financial flexibility that will enable the company to drive future growth. Royce & Associates, founded by Chuck Royce, cut its position in Mobile Mini Inc. (NASDAQ:MINI) by 12% during the September quarter to 709,500 shares.

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