Insider buying can be a great indication that a company is doing well, purely because it indicates that those involved in its operations are happy to take a position on its growth. Here are five of the latest standout insider buys, alongside a brief analysis of the companies involved.
The Gap, Inc. (NYSE:GPS)
First up we’ve got some huge insider buying in Gap. Most reading this will be familiar with the company, but for those not, it a close to fifty-year-old global clothing chain based out of California. As of August 28, 2015, three brothers, board members and sons of the company’s founder picked up a combined 13 million shares. William, John and Robert Fisher bought 4.92 million, 5.02 million and 3.08 million shares respectively for a combined value of just over $430 million. Gap is a strong buy across a range of analysts at the moment, having recently beat earnings estimates to post $3.65 billion Q2 2015 revenues and net income of $239 million. Furthermore, stock can currently be had for a circa 25% discount on yearly highs.
Opko Health, Inc. (NYSE:OPK)
Dr. Phillip Frost is renowned for his financial support for companies in which he is involved, and a recent insider purchase of Opko reinforces this reputation. On September 3, 2015, Frost picked up a total of 9,000 shares valued between $10 and $11 to bring his total Opko holding to a little over 157 million shares. Opko is down close to 50% on yearly highs, having lost more than 30% of its market capitalization during August alone, but the company has an impressive pipeline, and with the pending FDA decision on Rolapitant, its lead cancer therapy expected this week, could be due an upside pop. Wednesday or Thursday is the slated announcement date, so Frost is likely piling up his exposure in anticipation of an approval. Fortunes have been made piggy backing Frost’s allocations, and now could be a good time to do just that.
Regis Corp. (NYSE:RGS)
Regis is a global hair salon company that has had a tough few weeks. The company missed on Q4 earnings estimates pretty much across the board, and is currently trading about 25% down on August highs as a result. Its Director, Patrick Williams, however, looks to be taking an opportunity to pick up cheap shares on the dip – as illustrated by a 10,000 total buy over 48 hours (2nd and 3rd September, 2015). The buy averaged out at $11.28 apiece and brings his total holdings to just shy of 50,000 shares. $11 marks strong historic support on this one, so with the last close a little over $12 now might be a good time to grab an exposure in anticipation of a medium term reversal.
Dollar General Corporation (NYSE:DG)
When Dollar General hit markets back in 2009, the company priced at $21 a share and looked well positioned as a discount retail outlet to take advantage of the recession. Fast forward six years and the company hit 2015 highs of a little of $80 in July, before dropping 10% on the recent market-wide selloff. Michael Calbert, member of the board of Directors at Dollar bought a total of 38,000 shares at between $72and $72 on the 1st and 2nd of this month, adding to the 10,000 he picked up at IPO for $21 to bring his total holding to a little over 55,000. The company missed on its Q2 earnings last month, but with $282 million net income on more than $5 billion of sales Dollar looks strong – an impression shared and demonstrated by the recent insider pickups. At a time when global markets are looking fragile, this company could again benefit from a weak economy, and looks to be a good allocation as we head into the final quarter of 2015.
Epizyme, Inc. (NASDAQ:EPZM)
Bringing things back to biotech to close out the list is Epizyme – a cancer focused pharma that specializes in gene therapy. Over the last few weeks the company’s chief development officer Tai-Ching Peter Ho has picked up a little over 2500 shares at between $16-17 apiece to bring his total holding to 3522. While not a massive buy, it demonstrates confidence in the company’s lead investigational therapy tazemetostat, the acceptance by the FDA of an IND for which was the driver behind a 10% jump that saw the company avoid the broader market selloff last week. $20 flat is the level to keep an eye on with this one. This price has offered up both support and resistance in the past, and a break below it early August makes the company an opportune target for a discounted allocation.