Insiders are Buying Western Asset Mortgage Capital Corp (WMC) and Callon Petroleum Company (CPE)

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

First off is Callon Petroleum Company (NYSE:CPE), a $358 million market cap company engaged in the exploration, development, acquisition and production of oil and natural gas properties. On Apil 7th, Gary Newberry, Senior Vice President at the company´s Operations division, acquired 14,616 shares of the company’s Common Stock, for $8.30 per share. The shares went to his 401(k) Account, which now contains 37,309 shares, valued at more than $326,000.

Callon Petroleum Company

Despite the fact that the company’s fundamentals do not look good, and growth prospects, just fine, but not great, Mr. Newberry 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. Richard C. Patton´s Courage Capital recently upped its stakes in the company by 50%, to 994,620 shares, and Richard Driehaus´ Driehaus Capital started a position over the last reported quarter, with 455,859 shares. Other prominent investors like Israel Englander, who upped his stakes by 57% lately, also seem to feel bullish about this stock.

The second company in this list is Western Asset Mortgage Capital Corp (NYSE:WMC), a $388 million market cap residential real estate finance company that invests in residential mortgage assets in the United States. Once again, despite weak fundamentals, the company’s President and CEO, Gavin James, seems to feel confident about its future. On April 9th, Mr. James acquired 7,000 shares of Common Stock for $14.54 per share. Following this transaction, the insider owns 28,227 shares of the company, worth roughly $400,000.

I would interpret Mr. James’ purchase as more of an income investment than as a bet on long-term growth. The company pays out more than 18% of the current stock price in the form of quarterly dividends. So, holding this stock is certainly profitable. Moreover, several major hedge funds, like Daniel S. Och‘s Oz Management, Matthew Hulsizer´s Peak6 Capital Management, and D. E. Shaw seem to feel the same way as Mr. James. So, if you are looking for a stock that returns money constantly, this might be your choice.

Disclosure: Javier Hasse holds no position in any stocks mentioned

Recommended Reading:

Insiders are Buying Shares of Francesca’s Holdings Corp (FRAN) & Gladstone Commercial Corporation (GOOD)

Strong Insider Activity Continues at Oiltanking Partners LP (OILT)

5 Small-Cap Stocks That Hedge Funds and Insiders Like

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 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

The 10 Longest Wars of All Time

The 13 Worst Looking Foods that Taste Great

The 6 Most Gruesome Injuries Suffered During a Sports Match

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!