3 Stocks with Multiple Insiders Purchasing: Alcoa Inc (AA), American Realty Capital Properties Inc (ARCP), MVC Capital, Inc. (MVC)

Recently conducted studies reveal that insider purchases can be frequently seen as signals of bullish sentiment among insiders (read more about this). The main reason to believe this is that insiders face a strong incentive to diversify their wealth away from the company they work in. By ignoring the benefits of diversification and buying the stock anyway, they prove to have a high level of confidence in the company. This is why, in addition to using hedge fund filings to develop investing strategies, we also maintain a database of insider purchases and take a brief look at significant insider buys to help investors decide if the company is worth further research. Therefore, in this article, I will look into three companies that have witnessed purchases from several insiders since the beginning of 2014.

The first company I would like to refer to is Alcoa Inc (NYSE:AA), the aluminum giant –its market capitalization surpasses $13 billion. On Jan. 15th, two Board Directors – Ratan Tata and Martin Sorrell- purchased shares of the company. Through two separate transactions, Mr. Tata bought a total of 1,980 shares. He paid $10.535 for the first 200 shares and $ 10.5375 for each of the following 1,780. He now owns 43,359 Alcoa Inc (NYSE:AA) shares.

Alcoa Inc (NYSE:AA)

Mr. Sorrell procured 1,925 shares for $10.5379 each and now holds 17,383 shares of the company. The stock is up more than 15% since their purchases. I should also mention that about 45 of the major hedge funds that we track hold long positions in this stock (a fact that should not pass unnoticed).

Second in my list is American Realty Capital Properties Inc (NASDAQ:ARCP), a REIT with a market cap of more than $2.5 billion and more than 20 major funds holding long position in its stock. Last week, two insiders acquired stock from the company; on Jan. 14th, Brian Block, Executive Vice President, Treasurer, Secretary and Chief Financial Officer, acquired* 4,000 shares of Series F Cumulative Redeemable Preferred Stock at a price of $20.59 per share. In addition to these shares, Mr. Block directly owns 894,694 shares of Common Stock and an extra 5,159 shares of Series F Cumulative Redeemable Preferred Stock.

A few days later, on Jan. 17th, Leslie Michelson, Board Director, acquired 6,900 American Realty Capital Properties Inc (NASDAQ:ARCP) shares of Common Stock in two separate transactions. On the one hand, he acquired 5,500 shares at a price of $13.5399 per share, increasing his holdings to 51,500 shares. In addition, Mr. Michelson bought 1,400 shares for $13.48 each, which are now held by an immediate family member.

Another interesting case is that of MVC Capital, Inc. (NYSE:MVC), which I already mentioned in a previous article (but the issue needs an update, as a new purchase was declared at the SEC on Jan. 22nd). Over the week of Jan. 13th, two insiders, Robert Knapp (Board Director) and Bruce Shewmaker (Managing Director), upped their stakes in the company. On Thursday Jan. 16th, Mr. Shewmaker added 500 shares** to his holdings for an approximate price of $13.83 per share. He now owns 22,865.72 shares of common stock.

Mr. Knapp was even more active. Over the past week, he completed three transactions. On Wednesday, Jan. 15th MVC Capital, Inc. (NYSE:MVC)’s Board Director bought 31,006 shares of the company for $13.77 per share. On Thursday, Jan. 16th, he –once again- purchased the company’s stock. In this occasion he acquired 4,876 shares at a price of $13.87 per share. Finally, on Jan. 17th, he procured another 2,512 shares for $13.89 each.

After the reported transactions, he owns 38,394 shares, indirectly, through a separately managed account and a private fund in which Mr. Knapp is a Principal. In addition, he holds 300,765 shares through Ironsides Holdings LLC, which is fully-owned by him. His total holdings are worth more than $4.8 million at current stock prices, and carry a 3.8% dividend yield. Trading at only 9 times its earnings, compared to an industry average of 23 x P/E, this stock certainly looks like a bargain.

 

* “Purchased by spouse as trustee of trust for the benefit of the reporting person’s children.” (Sec.gov)

** Mr. Shewmaker reported several transactions, both purchases and sales, on this date, but the final balance was an increase in his position by 500 shares. He paid about $13.83 per share.

Disclosure: Javier Hasse holds no position in any stocks mentioned

Recommended Reading:

 

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!