Tracking insider transactions is an important component of our investment strategy. While performing this task, I came across three very interesting (and big) insider purchases. Let’s take a look at them:
Republic Services, Inc. (NYSE:RSG) is a provider of services in the domestic non-hazardous solid waste industry, with a market cap of $14.2 billion. After a year and a half with no insider purchases, last Thursday, June 12, Bill Gates’ Cascade Investments LLC, more than 10% shareholder, acquired 221,382 shares of Common Stock for prices ranging from $36.57 per share to $36.74 per share. Having spent more than $8.1 million on stock in one day, Cascade Investments owns 89,856,142, which accounts for more than 25% of the company’s Class A Common Stock.
In addition to this group, several funds are long on this company. Mario Gabelli’s Gamco Investors last declared holding more than 2.56 million shares, worth about $87.5 million, while D. E. Shaw disclosed ownership of approximately 2.2 million shares.
Prospect Capital Corporation (NASDAQ:PSEC) is a $3.5 billion market cap financial services company that primarily lends to and invests in middle market privately-held companies. On June 12, the company saw intense insider activity as well: four insiders spent more than $1.59 million in stock. John F. Barry, CEO, bought 100,000 shares of Common Stock for $10.33 per share and now owns over 4 million shares of the company; Brian H. Oswald, CFO, COO and Secretary, purchased 30,000 shares for $10.25 each and now holds 121,700 shares; Grier M Eliasek, COO, acquired 24,00 shares for $10.28 each and currently owns 167,196 of them; and Eugene Stark, Board Director, bought 1,000 shares for $10.27 each.
On top of all this insider bullishness, hedge funds also seem to love this company. Over the last reported quarter, John Overdeck And David Siegel’s Two Sigma Advisors, increased its stake in Prospect Capital by 2337%, to 3.31 million shares, worth about $35.8 million by the end of Q1.
Finally, there’s Spectrum Brands Holdings, Inc. (NYSE:SPB), a $4.2 billion market cap consumer products company that saw a 10% owner group (which includes a couple of Board Directors*) spend $3.80 million in its stock. On June 11, the group acquired 50,000 shares of Common Stock for an average price of $75.90 per share, and now owns over 30.9 million shares. This makes Phil Falcone’s Harbinger Group, the largest hedge fund shareholder (amongst those we keep track of) by far, holding a stake worth more than $2.4 billion.
* “Mr. David M. Maura and Mr. Omar Asali serve on the board of directors of the Issuer. Mr. Maura is an Executive Vice President and a director of HGI. Mr. Asali is President and a director of HGI. As a result, the persons listed herein may be deemed directors of the Issuer by deputization” (SEC.gov).
Disclosure: Javier Hasse holds no position in any stocks mentioned