Which Insiders Buy Their Own Stock?

06/07/2016 9:00 am EST

Focus: STOCKS

Stephen Biggar

Director, Product Strategy, Argus Research Corporation

Insider sentiment continues to improve; the Vickers’ benchmark NYSE/ASE One-Week Sell/Buy has moved in a positive direction for three consecutive weeks, reports Stephen Biggar, editor of Argus Research.

At Eli Lilly (LLY), director Jackson Tai purchased 1,080 shares at $75.75 per share, increasing his total reported holdings to 40,600 shares.

Lilly recently reported that revenue grew 5% to $4.87 billion and beat the consensus of $4.85 billion.

Argus believes that LLY is favorably valued relative to peers and notes that the 2.7% dividend yield adds to the total potential return. Argus Research currently maintains a buy rating on the company. Our 12-month target price is $90.

Director Maria Lagomasino at Walt Disney (DIS) purchased 980 shares at $101.98, increasing her total reported holdings to 2,820 shares.

As per Argus Senior Analyst Joseph Bonner, CFA, increased investment in Shanghai Disneyland and other projects has weighed on earnings this year — but Disney is also positioning itself for long-term growth.

Argus’ earnings forecasts imply 10% growth over the next two years. We currently have a buy rating on the company.

A broad range of insiders at Flexion Therapeutics (FLXN) have been snapping up shares of the company. Between May 16th and 19th, insiders purchased a total of 18,000 shares at prices ranging from $9.10-$10.23.

Purchasers include chief medical officer Neil Bodick; president & CEO, Michael Clayman; and Fredrick Driscoll, CFO.

At Cenveo (CVO), four different insiders combined to acquire 289,511 shares at prices ranging from $0.88 to $0.92. The shares were purchased between May 12th and 16th.

Cenveo provides print-related products in the US and internationally. On May 11th, the company reported fiscal year 2016 1st quarter net sales of $432.8 million, up 0.7% from the 1st quarter of fiscal year 2016.

The increase in net sales was driven by higher sales from direct mail envelope and commercial print products. During the first quarter, Cenveo also completed the sale of its Packaging Business for cash proceeds of $94.6 million.

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By Stephen Biggar, Editor of Argus Research

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