Insiders Have Bought Winnebago Industries, Inc. (WGO), The Wet Seal, Inc. (WTSL), and More

Page 1 of 2

Economic theory, through the principle of diversification, suggests that it is irrational for company insiders to buy shares of the company and therefore increase their company-specific risk unless they are particularly confident in the stock’s prospects. Of course, sometimes insiders are wrong (or potentially buy the stock for other reasons), but overall stocks bought by insiders narrowly outperform the market (read our analysis of studies on insider trading). This is why we track insider purchases as well as maintain our database of hedge fund filings which we use to research investing strategies (including our top small cap picks among hedge funds strategy). Read on for five stocks which insiders have been buying recently.

Chuck Royce

A member of Winnebago Industries, Inc. (NYSE:WGO)’s Board of Directors purchased 4,000 shares of stock in mid April at prices generally between $17.50 and $18 per share. Winnebago Industries, Inc. (NYSE:WGO)’s revenue grew by 35% in its most recent fiscal quarter compared to the same period in the previous fiscal year, and the company earned $6.3 million in net income as opposed to a net loss. The stock is up 93% in the last year, and currently trades at 14 times forward earnings estimates. Chuck Royce’s Royce & Associates owned 2.2 million shares of Winnebago Industries, Inc. (NYSE:WGO) at the end of December (research more stocks Royce owns).

A Form 4 filed with the SEC showed a The Wet Seal, Inc. (NASDAQ:WTSL) Board member buying a little over 60,000 shares at an average price of $3.19 per share. The women’s and girl’s apparel retailer has been reporting declining same-store sales, and actually experienced an operating loss in the last fiscal year. The sell-side is not particularly optimistic, with Wet Seal, Inc. (NASDAQ:WTSL) expected to post negative earnings per share this year as well. When we looked at the company, we didn’t think that it looked like a good buy, and that value investors might be better served by considering peers such as Jones Group (NYSE:JNY) or Ann Inc (NYSE:ANN).

One of AGCO (NYSE:AGCO)’s company officers bought close to 4,000 shares of stock on April 16th. For a couple months a company related to a Board member has been buying shares, so we now have multiple insiders buying AGCO; consensus insider purchases are stronger, though not perfect, bullish signals. As with many agriculture related companies, AGCO posts fairly low earnings multiples- the trailing and forward P/Es are 9 and 8, respectively. Revenue has been up, though in Q4 net income was down by quite a bit versus a year earlier and we’d have to look into that before considering it as a value stock.

Page 1 of 2

Dividend Stock Alert - Billionaire Robbins' Top Dividend Idea With 70% Upside Potential

Get Paid 3.5% Per Year While Waiting For The Stock Appreciate 70%

Larry Robbins' Glenview Capital Opportunity Fund returned 101.7% in 2013 and Robbins personally made $750 million. The same fund returned 25.3% in 2014. In this FREE REPORT we will share Robbins' top dividend idea that yields 3.5% and has been increasing its dividends for 39 consecutive years. Robbins thinks the stock has the potential to appreciate 70%.

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!