Argus Research: Tracking Insiders

07/05/2017 2:50 am EST

Focus: STOCKS

Stephen Biggar

Director, Product Strategy, Argus Research Corporation

Insider sentiment remains bearish, but had been in a bullish trend for the past month. Now, after four consecutive weeks of improvement, Vickers’ short-term (one-week) sell/buy ratios have worsened, notes Stephan Biggar of Argus Research, who looks at two stocks with recent insider buying.

Insiders at TheStreet (TST) have been increasing their holdings. Margaret DeLuna, the president at TheStreet.com, purchased a total of 7,500 shares, accounting for the entirety of her holdings. Director Lawrence Kramer purchased 25,000 shares, increasing his total reported holdings to 508,652.

Chief Executive Officer David Callaway purchased 25,000 shares, accounting for the entirety of his holdings. Shares were purchased at prices ranging from $0.88-$0.94.

TheStreet is a $31.9 million market-cap Financial Exchanges & Data company, trading around $0.88 per share within a 52-week range of $0.61-$1.28. The company is expected to post a loss in 2017 and 2018 and EPS estimates for 2018 are falling.

Revenue is expected to rise in 2018. Cash on the balance sheet is $22.66M; debt is zero. The company’s P/E is meaningless given the loss estimates. The company trades at a price/sales ratio of 0.5, at the low end of its five-year range of 0.4-1.8.

Thomas Bancroft of Wesco Aircraft (WAIR) purchased 1,396,510 shares, increasing his total reported holdings to 9,571,818.

The shares were purchased at prices ranging from $8.16-$9.84. Wesco is a $996.8 million market-cap Aerospace & Defense company, trading around $10.25 per share within a 52-week range of $7.46-$15.77.

The company is expected to post a profit in 2017 and 2018. EPS estimates for 2018 are falling. Revenue is expected to rise in 2018 to $1.52 billion.

Cash on the balance sheet is $53.97M; debt is 15-times cash at $859.97M. Standard & Poor’s rates the company B+/Stable.

The company’s P/E ratio is 12.1 compared to a five-year range of 9.8-19.1. The price/sales ratio is 0.7 compared to a five-year range of 0.6-2.3. The price/book ratio is 1.1 compared to a five-year range of 0.9-2.4.

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