A Board Member Bought About $50,000 Worth of IHS

Page 1 of 2

According to a Form 4 filed with the SEC, Jean-Paul Montupet, a Board member at IHS Inc. (NYSE:IHS) purchased 500 shares of the stock on January 22nd through a trust at an average price of $99.26. Montupet also owns a little over 3,400 shares of IHS directly. IHS is an information, analysis, and consulting company with a market capitalization of $6.8 billion. Studies show that stocks bought by insiders tend to outperform the market (read more about studies on insider trading) and we think that this is because insiders face such strong incentives to avoid buying the stock that it is a bullish signal to see them going against these incentives. IHS had been the target of multiple insider purchases in late September and early October 2012, at prices of about $90 per share. See our records of these insider purchases.

IHS’s fiscal year ended in November, with the company reporting a 15% increase in revenue from the previous fiscal year (the previous year’s growth rate on the top line had been 25%). Sales were up 12% in the fourth quarter of the fiscal year versus a year earlier, so we’d conclude that while the business is growing its growth rates are slowing down. Earnings have also been up- they increased 17% in the last fiscal year, helped by very strong margins in the fourth quarter.

IHS Inc (NYSE:IHS)The market is very optimistic about the company, with the stock trading at 44 times trailing earnings. Certainly IHS Inc. has been growing nicely, but it did appear to us that its growth rates were slowing and a P/E of 44 suggests very high growth expectations. Wall Street analysts are forecasting high growth for the next couple years; the forward price-to-earnings multiple, based on the fiscal year ending in November 2014, is 20. We would avoid the stock given the trendline in revenue growth- it’s not as likely that the company will hit its targets as would be desirable.

Conatus Capital Management, managed by David Stemerman, increased its stake in IHS Inc. by 16% during the third quarter of 2012 to a total of about 520,000 shares. Stemerman had previously worked at billionaire and Tiger Cub Stephen Mandel’s Lone Pine Capital (see more of Stemerman’s stock picks). Robert Caruso’s Select Equity Group reported a position of 1.2 million shares at the end of September (find Caruso’s favorite stocks). Caxton Associates, founded by billionaire Bruce Kovner, sold its stake in the company during the third quarter (here are more stocks Caxton was trading).

We also looked at some similar companies, which are trading at a discount to IHS:

Page 1 of 2
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

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

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!