Top JPMorgan Chase & Co. (JPM) Executive Makes Huge Stock Purchase, Plus Insider Buying Revealed at 2 Other Companies

Cavium Inc. (NASDAQ:CAVM) had not seen any officers or directors purchase shares since 2011, until this week. Arthur D. Chadwick, Chief Financial Officer and Vice President of Finance and Administration, bought 20,000 shares on Tuesday at a price of $47.77 per share, lifting his overall holding to 68,172 shares. The provider of semiconductor processors for intelligent and secure networks has seen its shares decline by 25% since the beginning of 2016. The company’s just-released fourth quarter earnings report managed to put a halt to the massive selloff.  The company has been very successful in growing its business since its inception, as its net revenue increased to $373.0 million in 2014 from $7.4 million in 2004. The increased demand in the enterprise network and data center markets, and growing demand in the broadband and consumer markets stand behind the company’s top-line growth.

However, the top-line growth has stalled of late, as Cavium reported net revenue of $100.9 million for the fourth quarter of 2015, which was down from $105.1 million quarter-over-quarter and slightly short of the $101.2 million it earned in the fourth quarter of 2014. That said, Cavium’s net revenue for 2015 did reach $412.7 million, prolonging the company’s annual growth streak. There are several features that investors should consider when analyzing a potential investment in the company’s stock. For instance, three of the company’s customers accounted for 41.4% of net revenue in the nine months that ended September 30, which may serve as reason for concern among investors. At the same time, Cavium has a limited history of profitability, which is yet another issue investors should be aware of. Columbus Circle Investors, managed by Clifford G. Fox, cut its stake in Cavium Inc. (NASDAQ:CAVM) by 481,530 shares during the fourth quarter to 572,369 shares.

HCP Inc. (NYSE:HCP) saw two different insiders make sizable purchases earlier this week. To start with, President and Chief Executive Officer Lauralee E. Martin purchased 25,000 shares on Thursday at prices varying between $25.22 and $25.58 per share, boosting her total stake to 252,223 shares. Moreover, J. Justin Hutchens, Executive Vice President and Chief Investment Officer – Senior Housing and Care, bought 10,000 units of common stock a day earlier at prices that ranged from $27.32 to $27.73 per share. After the recent purchase, the CIO currently holds an ownership stake of 35,854 shares.

The shares of the real estate investment trust (REIT) serving the healthcare industry are down by nearly 32% so far in 2016, mainly owing to worsening conditions in the post-acute/skilled nursing industry, which are hurting the REIT’s largest tenant, HCR ManorCare. The ongoing changes in reimbursement models reduce rates and lower census, and these changes are anticipated to continue impacting HCRMC’s financial performance in 2016. Earlier this month, the REIT announced a quarterly dividend of $0.575 per share, which results in an annualized distribution rate of $2.30 per share. This represents a slight uptick from the annual dividend of $2.26 per share paid last year. It should be mentioned that HCP is the only REIT in the S&P 500 Dividend Aristocrats Index, which includes companies that have increased dividends every year for at least 25 consecutive years. Meanwhile, the stock trades at a forward P/E multiple of 13.76, which is below the ratio of 15.87 for the S&P 500 benchmark. Jim Simons’ Renaissance Technologies owns 1.72 million shares of HCP Inc. (NYSE:HCP) as of the end of the fourth quarter.

Disclosure: None