While one insider buying a company’s stock might not make the stock a sure shot winner, academic study on insider trading have shown that stocks that are bought by multiple insiders outperform the overall market by 7% on an average each year. Two stocks that have recently seen buying by multiple insiders are Intevac, Inc. (NASDAQ:IVAC) and OMNOVA Solutions Inc. (NYSE:OMN), let’s explore each of them in detail.
Intevac, Inc. (NASDAQ:IVAC) is a $159 million market cap company that is organized into two business sectors – process equipments and photonics. On October 2, 3 and 6, Matthew A Drapkin, a director of Intevac, Inc. (NASDAQ:IVAC) and Founder of Becker Drapkin Management purchased several shares of the company. On October 2, Drapkin acquired 20,762 shares at an average of $6.77 per share, on October 3 he bought 14,903 shares at an average of $6.84 per share, and on October 6 he bought 21,200 shares at an average of $6.96 per share. With these three purchases, Drapkin now owns a total of 2,199,218 shares of Intevac, Inc. (NASDAQ:IVAC).
According to the last declared quarterly results, the company has an EPS of negative $0.44 and 90% of all shares of the company are currently owned by institutions. Jean-Marie Eveillard’s First Eagle Investment Management and Chuck Royce’s Royce & Associates are two of the largest shareholders of the company. As of June 30, 2014, First Eagle Investment Management owns over 3.5 million shares and Royce & Associates owns over 1.5 million shares of Intevac, Inc. (NASDAQ:IVAC).
OMNOVA Solutions Inc. (NYSE:OMN) is a $257 million market cap company that produces emulsion polymers and specialty chemicals. On September 30 and October 6, the company’s stock was purchased by three insiders. On October 29, OMNOVA Solutions Inc. (NYSE:OMN)’s Sr. VP & CFO, Paul F Desantis, purchased 11,000 shares of the company at an average of $5.57 per share, and David J Dantoni, a director of OMNOVA Solutions Inc. (NYSE:OMN), bought 10,000 shares at an average of $5.55 per share. With their respective purchases, Desantis now owns a total of 36,000 shares and Dantoni now owns a total of 20,023 shares of OMNOVA Solutions Inc. (NYSE:OMN). On October 6, OMNOVA Solutions Inc. (NYSE:OMN)’s President of Board & CEO, Kevin M McMullen, purchased 23,150 shares at an average of $5.47 per share. Accounting for this purchase, McMullen now owns a total of 930,124 shares of the company.
Based on last declared quarterly results, OMNOVA Solutions Inc. (NYSE:OMN) has an EPS of $0.31 and trades at 17.54 times earnings. Mario Gabelli’s Gamco Investors and Jim Simons’ Renaissance Technologies are two hedge funds that are bullish on the stock. As of June 30, 2014, Gamco Investors owns over 1.4 million shares and Renaissance Technologies owns over 450,000 shares of OMNOVA Solutions Inc. (NYSE:OMN).
Disclosure: None
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