These Companies’ Insiders Buy More Shares Despite Growing Concerns About U.S. Economy

DST Systems Inc. (NYSE:DST) also saw a member of its Board of Directors purchase shares this past week. Director Charles E. Halderman acquired 5,000 units of common stock on Thursday at prices that ranged from $103.31 to $113.99 per unit and lifted his overall holding to 10,688 shares. The Director also holds an indirect ownership stake of 2,001 shares through Directors Deferred Fee Plan. The company utilizes proprietary software applications to offer information processing and servicing solutions to the asset management, brokerage, retirement, insurance, and healthcare markets. For instance, certain software applications enable customers to analyze and report their investors’ transactions. At the end of 2015, DST sealed an agreement to purchase full-service provider of specialized hedge fund administration services Kaufman Rossin Fund Services LLC for $95.0 million. This transaction is expected to close during the first quarter of 2016. DST shares are down nearly 11% thus far in 2016, sending them into negative territory for the past 12-month period. The company generated total revenues of $2.83 billion for 2015, up from $2.75 billion reported a year earlier. However, its diluted earnings per share dropped to $9.83 from $14.66 year-on-year. DST Systems also recently announced a quarterly cash dividend of $0.33 per share, which was up by $0.03 or 10%. To sum up, the stock appears to be relatively undervalued at the moment given that it trades at a forward P/E of 13.85, which compares to the average of 35.2 for application software companies and 15.87 for the companies included in the S&P 500 Index. Scopia Capital, founded by Matt Sirovich and Jeremy Mindich, acquired a stake of 1.11 million shares of DST Systems Inc. (NYSE:DST) during the July-September period.

Mack Cali Realty Corp (NYSE:CLI) has seen intensifying insider buying activity in recent months, so insiders surely anticipate positive developments at the company in the upcoming months. Executive Vice President and Chief Investment Officer Ricardo Cardoso purchased a 23,000-share block on Thursday at prices varying from $19.46 to $19.55 per share, and currently owns a stake of 35,000 shares. Mack Cali Realty is a real estate investment trust that provides leasing, management, construction and tenant-related services for its properties and other parties. The REIT owns or has interests in 274 properties as of September 30, which consist of 146 office and 109 flex properties, and 19 multi-family rental properties that comprise 5,644 residential units. The shares of the REIT are 20% in the red year-to-date, so it is not surprising that the CIO purchased shares last week given that no major firm-specific news or announcements surfaced so far in 2016. In September 2015, Mack Cali Realty revealed transformation plans to become a more concentrated owner of New Jersey Hudson River waterfront and transit-oriented office properties and a regional owner of luxury multi-family residential properties. Some of the company’s ten core office markets were weak throughout 2015 while others recovered and stabilized, as revealed by the company’s occupancy rates. 85.8% of the company’s operating commercial properties were leased at the end of September, as compared to 82.3% at the end of June 2015 and 83.7% at the end of September 2014. In mid-January, Stifel reiterated its ‘Buy’ rating on the stock and lifted its price target to $26 from $25. Jim Simons’ Renaissance Technologies reported owning 1.07 million shares of Mack Cali Realty Corp (NYSE:CLI) through its 13F for the September quarter.

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