Insiders Are Buying Firstmerit Corp (FMER) & Horizon Bancorp (HBNC)

Tracking insider purchases is a fundamental task for any good investor, as it can provide great ideas that go beyond usual options. Let’s, thus, take a look at two U.S. national commercial banks that saw their insiders buy their stock this week.

Firstmerit Corp (NASDAQ:FMER) is a $3.16 billion market cap bank holding company. On April 24, Russ Strobel, Board Director, acquired 5,000 shares of the company’s, for $19.08 apiece. He now owns 16,578 shares of the company.

Firstmerit insider trading

Despite the fact that the company’s fundamentals do not look good (margins and returns are below industry averages), and growth prospects, just fine, but not amazing, Mr. Strobel seems bullish about this company. Opinion among analysts is quite divided, although recommendations tend towards a “buy.” In addition, several major hedge funds are betting on this stock. Ken Fisher‘s Fisher Asset Management is the largest hedge fund shareholder, with 3.43 million shares, worth more than $65 million. Ken Gray and Steve Walsh‘s Bryn Mawr Capital, for its part, upped recently its stakes by 7%, to 479,581 shares. Moreover, Jim Simons‘ Renaissance Technologies started a position in the stock over the last reported quarter, with 479,141 shares, while Israel Englander’s Millennium Management initiated one with 384,495 shares.

The second company in this list is Horizon Bancorp (NASDAQ:HBNC), a $172 million market cap bank holding company that provides various banking services in Northwestern and Central Indiana and Southwestern Michigan through its bank subsidiary, Horizon Bank, N.A. and other affiliated entities. In this case, there are two Board Directors that seem to feel bullish about this stock. On April 24, Robert Swinehart acquired 1,000 shares of Common Stock for $20.45 per share. Following this transaction, the insider owns 32,120 shares of the company, worth more than $640,000. On the following day, Lawrence Burnell purchased another 1,000 shares of Common Stock, for $20.50 each. His holdings now add up to 11,838 shares.

In this case, the purchase makes sense from a fundamental point of view. The company’s margins and –especially- returns surpass industry averages comfortably, while its stock still trades below mean valuations (at 9.3x P/E, and 2.1x P/B).

 

HBNC

Source: Morningstar

And, although there are not many major funds betting on this micro-cap company yet, the firm does count with the backup of Jim Simons, who last reported having increased his stakes by 3%, to 59,289 shares. With Jim Simons and insiders trusting this stock, should you too?

Disclosure: Javier Hasse holds no position in any stocks mentioned

Recommended Reading:

Insider Purchases at Four Jim Simons’ Small and Micro-Cap Picks

Two Banking Stocks That Insiders Are Buying

Five Stocks That Insiders Have Been Buying Recently

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. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

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!