|A First Look At Post Q2 Earnings Insider Buying
This week we wanted to take an early look at some of the names that saw a notable
amount of insider buying following their Q2 release. We recently wrapped up our
Insider Earnings Calendar. On the balance, we found that corporate insiders that
bought stock prior to their Q2 results, saw their respective stocks perform well
following their latest quarterly report. With that said, we wanted to see who has been buying following the latest quarter.
We also found that stocks with corporate insider buying, which excludes those purchases from large institutions, performed particularly well. As such, we focused on stocks with corporate buyers. Below we breakout several of the more notable post-earnings buyers.
|| Earnings Reporting Date
||Number of Shares Purchased
||Total Dollar Amount
||Q2 beat, Q1 restated lower
||Q2 EPS miss, revenue beat
|Valley National Bancorp
||slight Q2 EPS miss
||Q2 EPS and rev miss
||CEO, CFO CAO, EVP, and Directors (2)
||Q2 EPS miss
||CEO, CFO, COO, CCO, EVPs (3), and Directors (5)
||Q2 EPS miss
|Green Mountain Coffee Roasters
||Q3 EPS beat and lowered guidance
|| Directors (2) and unit President
||Q2 inline with downside preannouncement
||CEO and Director
||Q2 miss and lowered guidance
||CEO, Treasurer, VPs (2), and Directors (2)
||mixed Q2 results
||mixed Q2 results
||COO, Director, and EVP
||Q3 miss and guidance reaffirm
||wider-than-expected Q2 EPS loss, beat on revs (limited coverage)
||CEO and Director
Below we provide a brief recap of some of the more interesting names seeing insider buying and provide some context behind the purchases:
- JP Morgan (JPM) - We would be remiss if we didn't mention Jamie Dimon's huge stock purchase following JPM's Q2 report. Between July 19 and 20, JPM's chief bought half a million shares at an average price of $34.22 which values the purchase at over $17 million. It marked the first open market stock purchase from an insider since Director James Crown bought ~194K shares in August 2011. Many perceived Dimon's purchase as a vote of confidence in JPM. This comes after the company reported sizable losses from the London whale fallout and the subsequent negative press that followed. Dimon's purchase also served as a catalyst for the stock, which rallied 9% the week following the buy. In spite of the stock's recent run, JPM still trades well below its highs in spring, prior to when the London whale trade blew up. While Dimon's 500K share purchase made headlines, it's worth noting that he also disclosed selling preferred stock in the same SEC filing. He sold 12,142 series I preferred stock at $1,100/share for a total of ~$13.5 million. So, net-net, Dimon paid roughly ~$3.6 million out of pocket for the purchase.
- Regional Banks
- IberiaBank (IBKC) - Southwestern regional bank IBKC has been dragged lower this past year on a series of disappointing quarters. The company, which has been in turnaround mode for some time, has suffered from high operating expense ratios associated with the company's investments longer-term growth initiatives that have overshadowed otherwise decent loan growth. IBKC's recent acquisition of Florida Gulf Bancorp marks the company's latest move to help expand its footprint amid the current low interest rate environment. As the stock carved out new lows in early August following IBKC's disappointing Q2 results, 2 Directors stepped into buy nearly $1 million in stock
- Valley National (VLY) - VLY, which operates in New York and New Jersey, is another regional bank that has seen its stock decline over the past several months. Like IBKC, VLY has struggled recently. Yet, VLY has still been able to grow its loan portfolio by roughly 10% in its most recent quarter. Also like IBKC, 2 VLY Directors bought stock on weakness following the company's earnings release.
- Green Mountain Coffee Roasters (GMCR) - Former high-flyer GMCR, a name most traders are familiar with, has been in a perpetual state of decline since the stock peaked about a year ago (GMCR reached almost $116 in September 2011). After enjoying years of explosive growth, GMCR saw its margins erode as capital expenditures began to outpace that growth. In addition, the company begun to face increased competitive pressures as the single serve coffee space grew. Since 2011 highs, insiders have largely remained sellers of GMCR stock -- along with the rest of the market. That changed, however, following the company's most recent quarterly results, which weren't stellar but "less-bad" than most investors were anticipating. The stock gapped up on the Q3 report in early August. Subsequent insider buying from 3 insiders only extended those gains. Yet, GMCR still trades at an 80% discount to 2011 highs.
- Harte-Hanks (HHS) - Direct marketing company HHS saw a precipitous drop in its stock price in July after the company preannounced lower Q2 earnings and revenue guidance. HHS saw sales declines across its tech, pharma, and financial verticals. To make things worse, HHS customer JC Penny's (JCP) recent marketing shift toward broadcasting and away from traditional mail marketing, also put a dent on the company's outlook. This was certainty a blow to the company and as a result the stock was punished; losing a third of its value over the next couple weeks before reaching 52 week lows in early August. After the company announced formal Q2 results on August 2, HHS insiders began to buy stock. Since then, the stock has recovered off of lows, but remains well below its prior trading range.
- Enpro (NPO) - NPO, which makes a host of sealing products and bearings commonly used used in heavy duty engines, traded to lows in August following disappointing Q2 results. The company saw particular weakness from customers in Europe as well as a drag from FX. These dynamics, coupled with a cautious outlook on the domestic front, led management to lower its earnings guidance for FY12 and FY13 as well. With the shares trading at 2012 lows in the wake of the results, insiders began to buy -- a fair number of them in fact. Over the next two weeks, six insiders -- including the CEO -- bought nearly $800K in stock. The spate of insider buying didn't go unnoticed by the investment community. NPO is up 12% since reporting its Q2 results.
- XPO Logistics (XPO) - Carrier logistics provider XPO is another under-the-radar name seeing a lot of recent insider buying that caught our eye. After reaching 52 week highs in June near the $19.50 level, XPO fell has much as $7 by early August on no company-specific news. The stock began to stage a turnaround earlier this month, buoyed by a stronger-than-anticipated Q2 report on August 6. Moreover, the company's earnings suggest that its business is trending ahead of expectations heading into the back half of the year. After the Q2 release 3 insiders bought $800K worth of XPO stock.
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