Insiders may sell shares for any number of reasons, but there is really only one reason insiders buy shares of a company — they believe the stock price will move higher and they want to profit from it. Pullbacks and sell-offs provide a perfect opportunity for investors who have faith in a company to snap up shares. Here are some stocks that have seen insider buying recently.
Center Bancorp (NASDAQ: CNBC): Three directors and the corporate secretary have bought up more than 79,000 shares in the past week. That was worth more than $80,000. The market cap of his New Jersey-based regional bank is $163.3 million. Its P/E and PEG ratios are less than the industry average and the dividend yield is 1.2%.
The share price is up more than 2% since the beginning of the year despite a recent pullback. Over the past six months, the stock has underperformed competitors New York Community Bancorp (NYSE: NYB) and Valley National Bancorp (NYSE: VLY).
See also: Center Bancorp Announces Appointment of Chief Lending Officer.
Cracker Barrel Old Country Store (NASDAQ: CBRL): Sardar Biglari purchased 51,000 more shares this week. That was worth more than $2.8 million. The Texas-based activist investor has spent more than $60 million on the stock so far this year. Cracker Barrel has a market cap of $1.3 billion. Its P/E ratio is less than the industry average and the return on equity is 28.3%.
Shares have traded mostly between $55 and $57 since late February, but the stock has outperformed competitors Denny’s (NASDAQ: DENN) and IHOP parent DineEquity (NYSE: DIN) over the past six months.
Glimcher Realty Trust (NYSE: GRT): A director and an executive vice president of this Columbus, Ohio-based REIT purchased 12,000 shares, worth about $205,000, this past week. It has a market cap of $860.7 million and a dividend yield of 3.9%. It is expected to report year-over-year EPS and sales growth for the fourth quarter on April 25.
The share price is up about 11% year to date and less than 3% below the 52-week high. But over the past six months, the stock has underperformed competitors such as CBL & Associates (NYSE: CBL) and General Growth Properties (NYSE: GGP).
See also: Glimcher Realty Trust Announces Pricing of 20 Million Common Shares.
Ladenburg Thalmann Financial Services (NYSE: LTS): Some 80,000 shares, worth more than $147,000, were purchased recently by the CEO, COO, two directors and an executive VP. The Miami-based investment bank has a market cap of $318.5 million and posted strong Q4 results due to an acquisition.
The share price has fallen more than 41% from the 52-week high back in late December, but it is still more than 39% higher than a year ago. Over the past six months, the stock underperformed competitors such as LPL Investment Holdings (NASDAQ: LPLA), as well as the broader markets.
See also: Biographical Profiles in Investing: Dr. Phillip Frost.
Opko Health (NYSE: OPK): The chairman, vice chairman and an executive VP have bought more than 150,000 shares in the past week. The chairman has been frequently buying shares since November. This Miami-based health care company has a market cap of $1.4 billion. Short interest is 19.8% of the float.
Shares have traded mostly between $4.50 and $5.50 since October, and the share price is about 3% lower that at the beginning of the year. Over the past six months, the stock has underperformed competitor Allergan (NYSE: AGN) and the broader markets.
See also: Opko Health Acquires Chilean Pharmaceutical Company.
Paramount Gold and Silver (NYSE: PZG): The CEO, CFO and a beneficial owner recently purchased more than 1.2 million shares, worth over $2.5 million. The mining company recently agreed to issue 8.9 million shares of common stock in a private placement transaction to fund its current exploration and development plans in Mexico and the U.S.
Shares jumped more than 9% in the past week, following the announcement, but the share price is still about 37% lower than a year ago. The stock has outperformed competitors such as Allied Nevada Gold (NYSE: ANV) over the past six months.
See also: Paramount Gold and Silver Finds Exceptional Grades and Widths.
ACTION ITEMS:
Bullish: Investors interested in exchange traded funds focused on insider sentiment might want to consider the following trades:
- Direxion All Cap Insider Sentiment Shares (NYSE: KNOW) is more than 12% higher year to date.
- Guggenheim Insider Sentiment (NYSE: NFO) is more than 12% higher year to date.
Bearish:
Traders may prefer to consider these alternative positions to some of the stocks listed above:
- MAKO Surgical (NASDAQ: MAKO) is up more than 65% year to date.
- Ruth’s Hospitality Group (NASDAQ: RUTH) is up about 47% year to date.
- Pennsylvania Real Estate Investment (NYSE: PEI) is up about 44% year to date.
- Molycorp (NYSE: MCP) is up more than 38% year to date.
This article is written by Nelson Hem. Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.
