Insiders Have Bought Alcoa, Darden, and More This Year

Real estate investment trust Newcastle Investment Corp. (NYSE:NCT) had two company insiders participate in a secondary offering in early 2013 at $9.35 per share; each of the two bought about $1 million worth of stock. Newcastle pays a 9% dividend yield, going by its most recent dividend payments and stock price, but the company- which invests in mortgage backed and asset backed securities- dropped 93% in 2008 and had to halt its dividend payments for almost three years. As such, we’d consider Newcastle to be a risky stock and while investors could consider it further they should not be blinded by the high yield.

Trusts connected to a Board member at Synageva Biopharma Corp (NASDAQ:GEVA) bought 21,000 shares of the stock earlier this month at an average price of $47.53. Synageva is a development-stage biotech company, so it does not have any earnings and the Street expects negative profits for 2013 as well. However, the stock had a very good 2012. Baker Brothers- one of whose managers serves on Synageva’s Board as well- had the stock as one of their top picks in the fund’s most recent 13F filing (research more stocks Baker Brothers owns).

An insider at AngioDynamics, Inc. (NASDAQ:ANGO) directly purchased 2,700 shares at an average of $11.85 per share. AngioDynamics is a $410 million market cap medical instruments company (with a little over $1 million in daily dollar volume). The company’s revenue was up strongly in its most recent fiscal quarter versus a year earlier, though net income was down and the forward P/E of 22 does not look particularly attractive.

Disclosure: I own no shares of any stocks mentioned in this article.