Insiders are buying again at Dun & Bradstreet (DNB), observes Jim Osman — a leading a specialist in spin-offs and special situations investing — and the editor of The Edge Special Situations Report Lite.

In November 2020, insiders CEO Anthony Jabbour and CFO Bryan Hipsher bought shares at the mid-$26 level. Then, on February 11, 2021, both Jabbour (spending $998K) and Hipsher (spending $116K) bought again, this time at the mid-$23 level.

Anthony Jabbour has a successful track record in spin-off investing. He is also the CEO and board member at Black Knight, Inc. (BKI), a previous spinoff from FNF Group (FNF) in Sep 2017 and a major stakeholder in DNB (less than 20%).

Black Knight’s stock price has jumped 103% since then. Mr. Jabbour also has a strong track record of insider buys in terms of overall returns.

As noted above, CFO Bryan Hipsher has also dipped into his own pocket to buy 4,000 shares at $26.39, after having also participated and received shares in the IPO at $22.

This is a major positive indicator for value creation. According to the world’s top insider buying expert George Muzea, insiders buying so soon after an IPO is seen as a positive indicator for potential performance and is worth paying attention to these situations.

Dun & Bradstreet has a long and storied 179-year history including a long history of spin-ffs. Indeed, the company has performed two of its own separations — Neilsen Holdings Plc (NLSN) and Moody's Corporation (MCO).

The next event for the company will be its first quarter earnings call, which is currently expected to take place on May 6, 2021. In our view the company has a base case for potential 33% upside. In a bull case, we see upside of 40%.

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