Investing without an edge is like throwing darts on a board. Retail investors often complain that they can’t have an edge or can’t beat the markets like institutional investors as they lack the resources those institutional investors have at their disposal. That might be true, but there is always a way to do things in a more cost-efficient way and investing on the basis of insider trades is one of them. We at InsiderMonkey are always on lookout for trades that insiders are making and bring it to the notice of our readers. Two companies that have recently seen good amount of buying coming in from insiders are – Interface, Inc. (NASDAQ:TILE) and Hudson Global Inc (NASDAQ:HSON).
Interface, Inc. (NASDAQ:TILE) is a $960 million market cap company, which prides itself in being the world’s largest manufacturer of modular carpets. On October 9, Christopher G Kennedy, a director of Interface, Inc. (NASDAQ:TILE), purchased 18,000 shares of the company at an average price of $13.81 per share. With this acquisition, Kennedy’s total ownership stands at over 108,000 shares. On the same day, Raymond S Willoch, Sr. Vice President of Interface, Inc. (NASDAQ:TILE) purchased 725 shares at an average price of $13.75 per share, this was the first purchase of the company’s stock by Willoch.
On October 10, Interface, Inc. (NASDAQ:TILE) announced early redemption of $27.5 million worth of its 7 5/8%senior notes. For the second quarter of 2014, the company declared revenues of over $260 million and EPS of $0.20, compared to over $243 million in revenue and EPS of $0.17 in the same period last year. It currently trades at around 16 times its forward earnings. Mariko Gordon’s Daruma Asset Management is one of the largest shareholders of the company, which as of june 30, 2014, owns over 3.3 million shares. Chuck Royce’s Royce & Associates is also bullish on the company, increasing its stake by 11% to over 1.2 million shares during the second quarter.
Hudson Global Inc (NASDAQ:HSON) is a $114 million market cap, talent management and recruitment company. Between August 19 and October 13, Jeffrey E. Eberwein, a director of Hudson Global Inc (NASDAQ:HSON), and as the manager of Lone Star Value Investors GP, LLC, purchased 149,308 shares of the company in several tranches at an average price of $3.74 per share. Including for this purchase, Eberwein now owns over 2 million shares.
The company recently announced that its third quarter revenue is expected to be flat year over year at around $163 million, below the range of $165 million and $175 million that it announced on July 31, 2014 and the adjusted EBITDA is expected to be a loss in the range of $4.4 million to $4.6 million, compared to a range of breakeven to aloss of $2 million that it announced on July 31, 2014. Hudson Global Inc (NASDAQ:HSON) trailing operating margin is -0.02, compared to industry average of 0.04. Dan Friedberg’s Sagard Capital Partners Management Corp is one of the largest investors in Hudson Global Inc (NASDAQ:HSON), which held over 4.65 million shares or around 14% of all common stock of the company during second quarter.
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