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

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!