Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned dollars to make a purchase, is that they expect to make money. Today we look at two noteworthy recent insider buys.
The Daily Ticker’s Aaron Task interviews Yale economist Robert Shiller
In trading on Tuesday, computer peripherals shares were relative leaders, up on the day by about 2.1%. Leading the group were shares of Lexmark International (LXK), up about 17.4% and shares of Nam Tai Electronics (NTE) up about 2.2% on the day.
Bank of Montreal (BMO) announced that quarterly profit increased by 37 percent, beating expectations. The company earned $970 million Canadian, or $1.42 cents per share Canadian, versus $708 million Canadian, $1.09 Canadian per share in the same period last year.
Rubber and fuel company TPC Group Inc. has come to a deal to be acquired by two separate investment firms, taking it private. For the two firms, First Reserve Corp. and SK Capital Partners, the deal is worth close to $627 million. The agreement sees the two investment firms paying $40 a share to stockholders, a 1% premium over Friday’s close price. The deal has not been approved yet, with only 22% of shareholders giving it the OK as of right now. According to Bloomberg, TPC plans a special meeting to seek the approval of its remaining shareholders.
Computer giant IBM has announced it will buy software company Kenexa. The deal will cost IBM $1.3 billion in cash, paying shareholders a 42% premium on Friday’s closing, making it $46 a share. Kenexa creates recruiting software that works through social networks and helps get companies in touch with talent. It also works to help employees collaborate on projects through similar tools. According to the New York TImes, this move is IBM’s attempt to make a bigger impact in the social networking sphere, with other tech giants like Microsoft making similar social media acquisitions.
Treehouse (THS) was upgraded by Citigroup (C) to buy from neutral as the private-label K-cup launch should add to the bottom line. A $61 price target was set.
Lowes Companies Incorporated (LOW) maintained its quarterly dividend of 16 cents per share. The dividend is payable November 7, 2012, to shareholders of record as of October 24, 2012.
Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned cash to make a purchase, is that they expect to make money. Today we look at two noteworthy recent insider buys.
In trading on Monday, music & electronics stores shares were relative leaders, up on the day by about 1.9%. Leading the group were shares of Best Buy (BBY), up about 7.6% and shares of Conns (CONN) up about 2.9% on the day.
