Top Weekly Insider Buys Include International Flavors & Fragrances Inc (IFF), ProAssurance Corporation (PRA)

ProAssurance Corporation (NYSE:PRA)

Who Bought Shares: Director Magnus Gorrie

How Many Shares Were Bought: 2,000 @ $39.20 per share

Date of the Transaction(s): June 13

The ProAssurance Corporation (NYSE:PRA) director’s purchase of 2,000 shares raised his position in the company to 14,231 shares. It’s not surprising to see insiders start to purchase shares of ProAssurance, which have tumbled by 33% in 2018.

ProAssurance’s first-quarter revenue came in at just $201.03 million, more than 10% worse than estimates, as the retention rate in its physician business continues to decline. At the same time, expenses have been growing, leading to shrinking margins and weaker earnings (which also missed estimates by 10% in Q1). Analysts see ProAssurance Corporation (NYSE:PRA) as one of the riskier plays in the industry at this point due to the unpredictability of its cyclical industry coupled with the soft pricing environment.

International Flavors & Fragrances Inc (NYSE:IFF)

Who Bought Shares: Director Dale Morrison

How Many Shares Were Bought: 4,010 @ $124.60 per share

Date of the Transaction(s): June 12

The director opened a new position in International Flavors & Fragrances Inc (NYSE:IFF), purchasing 4,010 shares for just under $500,000 total. Those shares would’ve cost about $610,000 at the start of the year, as they’ve fallen in value by 18% in 2018.

The latest blow to International Flavors & Fragrances Inc (NYSE:IFF) shares came in early-May after the company announced its $7.1 billion purchase of Frutarom. While management is bullish on the merger, anticipating accelerating free cash flow generation and profitability long-term, the market bristled at the price tag, which amounts to 20.3x Frutarom’s estimated 2018 EBITDA. Argus analyst John Staszak also worries that the company will continue to overpay for growth in order to meet its aggressive 2020 revenue growth projections.

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