Buy Beaten-Down Stocks With Insiders: Three Stocks to Buy at Deep Discounts

Page 2 of 2

Pitney Bowes Inc. (NYSE:PBI) is another company that had an insider acquire shares last week. President and Chief Executive Officer Marc B. Lautenbach acquired a total of 12,007 shares on Friday at a weighted average price of $20.81. Following the purchase, the CEO owns a stake of 132,432 shares, which includes 5,523 shares held in a joint account with his spouse. On October 29, the technology company offering products and solutions that power commerce released its third quarter financial results, which were quite well received by the market. Pitney Bowes Inc. (NYSE:PBI)’s revenues declined by 8% year-over-year to $870 million, while its adjusted earnings per diluted share came to $0.43, compared to $0.51 reported a year ago (also included $0.08 per share of tax benefits). Hence, the company managed to keep its bottom-line flat despite generating lower revenues. However, the stock is relatively cheap at the moment if considering its trailing P/E ratio of 10.73. Iridian Asset Management, founded by David Cohen and Harold Levy, was one of the top shareholders of Pitney Bowes Inc. (NYSE:PBI) at the end of the second quarter, with 14.37 million shares.

Follow Pitney Bowes Inc (NYSE:PBI)

Lastly, Kinder Morgan Inc. (NYSE:KMI) had unusual insider buying activity at the end of the previous trading week. Dax A. Sanders, Vice President of Corporate Development for Kinder Morgan, purchased 1,000 shares of Class P common stock on Friday for $27.40 each, and currently owns a stake of 269,927 shares. Next up is Vice President and General Counsel David R. DeVeau, who acquired 11,000 shares through multiple transactions at prices in the range of $27.39-to-$27.40 and enlarged his holdings to 354,132 shares. Thomas A. Martin, President of the Natural Gas Pipelines Group for Kinder Morgan Inc. (NYSE:KMI), bought a 10,000-share block on Friday at a weighted average price of $27.24, and lifted his direct ownership stake to 985,069 shares. Last but not least, President and Chief Executive Officer Steven J. Kean acquired 18,150 shares at prices between $27.41 and $27.44 apiece, and currently holds a 7.31 million-share stake. The shares of the third-largest energy company in the U.S have plummeted by 37% since the beginning of the year, so it is highly likely that these insiders purchased shares believing that they will appreciate in the months ahead. James Dondero’s Highland Capital Management owned a 2.14 million-share position in Kinder Morgan Inc. (NYSE:KMI) at the end of the June quarter.

Follow Kinder Morgan Inc. (NYSE:KMI)

Disclosure: None

Page 2 of 2