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 Click to see monthly returns in table format!

Lists

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

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!