High-Profit Stocks with Insider Buying
06/09/2011 8:00 am EST
Sharply increasing margins are boosting the bottom lines for these three companies, and with heavy insider buying as a sign of good future prospects, investors may want to take notice now.
Company insiders (officers or directors and C-level executives) have the best access to company information, which is why many potential investors consider insider buying of a stock when making their own investment decisions.
Here we report three companies seeing significant net insider buying over the last six months. These stocks also have positive growth trends in net margin (or rather, earnings as a percent of revenue).
All three stocks have five-year net profit margin growth above 20% and at least a 20% increase in net margin between the trailing twelve months (TTM) and the prior trailing twelve months. These companies are becoming more profitable by keeping more revenue as earnings.
KKR Financial Holdings LLC (KFN) is in the asset management industry and has a market cap of $1.73 billion.
Net profit margin growth over the last five years is at 49.98% and a TTM net profit margin of 64.32% versus prior TTM net profit margin at 41.13% (an increase of 23.19%).
Net insider purchases over the last six months have been 1,144,000 shares, or 0.77% of the company's float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.69). The stock has gained 33.75% over the last year.
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SandRidge Energy, Inc. (SD) is in the oil and gas drilling and exploration industry with a market cap of $4.28 billion.
Net profit margin growth over the last five years is 27.47% and TTM net profit margin is at -13.13% versus prior TTM net profit margin at -91.77% (an increase of 78.64%).
Net insider purchases over the last six months account for 1,369,450 shares, or 0.37% of the company's float. The stock has gained 62.62% over the last year.
NL Industries Inc. (NL) is in the synthetics industry with a market cap of $918.70 million.
Net profit margin growth over the last five years comes in at 23.71% with TTM net profit margin at 66.22% versus prior TTM net profit margin at -2.09% (an increase of 68.31%).
Net insider purchases over the last six months come in at 52,894 shares, or 0.83% of the company's float. NL has had a couple of great days, gaining 5.06% over the last week.
By the Staff at Kapitall.com