Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

CIM Commercial Trust Corp (CMCT), Tri Pointe Homes Inc (TPH), Select Income REIT (SIR): Three Companies With Big Insider Purchases

Research recently conducted by InsiderMonkey has shown that stocks with multiple insider purchases outperformed the market by an average of 7 percentage points per year. Over the past few days, a few small-cap companies saw several of their insiders acquire their stock –or one of them purchase a big chunk of it. Let’s look into some of the most interesting transactions.

Tri Pointe Homes

Since the beginning of the month, CIM Commercial Trust Corp (NASDAQ:CMCT) saw four of its insiders acquire more than $11.8 million in stock. Three Board Directors and Large Shareholders, Avraham ShemeshShaul Kuba, and Richard Ressler, each acquired 121,405 shares of Common Stock, pursuant to a Rule 10b5-1 trading plan, adopted on Jan. 29 2014. In addition, member of 10% owner group, CIM Service Provider, LLC bought the same amount of stock over July.

Although insiders seem to love CIM Commercial Trust Corp (NASDAQ:CMCT), this $1.44 billion market cap real estate investment trust (that mainly originates loans to small businesses, mainly in the limited service hospitality industry) has only one major hedge fund supporter. This is James Dondero’s Highland Capital Management, which recently disclosed having started a position at CIM Commercial Trust Corp (NASDAQ:CMCT), with 27,500 shares.

Tri Pointe Homes Inc (NYSE:TPH), a $2.43 billion market cap homebuilder and constructive services provider, saw one Large Shareholders (which qualifies as an insider) purchase almost $5 million in stock over the first couple of days of the month. Carlson Capital, a hedge fund managed by Clint Carlson, purchased 321,300 shares of Tri Pointe Homes Inc (NYSE:TPH), for prices ranging from $15.46 per share to $15.60 per share. Following the reported transactions, this Large Shareholder (more than 10% owner) holds 4.23 million shares of the company.

Other hedge fund that seem bullish about Tri Pointe Homes Inc (NYSE:TPH) are Robert Henry Lynch’s Aristeia Capital, which started a position over Q1, with 1.6 million shares; D. E. Shaw, which upped its stake by 7%, to 775,000 shares; and Chuck Royce’s Royce & Associates, which almost doubled its exposure, and now owns 645,672 shares.

Finally, there’s a company that saw a big insider purchase in the past few days: Select Income REIT (NYSE:SIR), a $1.76 billion market cap real estate investment trust that primarily owns and invests in single tenant properties. This REIT saw Barry Portnoy, Director and Large Shareholder, spend more than $15.75 million in its stock on July 9. The insider acquired 500,000 shares of Select Income REIT (NYSE:SIR) for $31.51 per share, and now owns 302,369 shares of the company.

On top of Mr. Portnoy, several major hedge funds are betting on Select Income REIT (NYSE:SIR), a company that boasts industry-leading margins and above average returns, but still trades at less than half its peers’ mean valuation. Derek C. Schrier’s Indaba Capital Management, the largest hedge fund shareholder of record, last upped its stake by 45%, to 1.38 million shares, while Israel Englander’s Millennium Management increased its exposure by 77%, to 329,986 shares.

Disclosure: Javier Hasse holds no position in any stocks or funds mentioned

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...
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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!