Since the beginning of February, seven insiders at ADT Corp (NYSE:ADT) declared – at the U.S. Securities and Exchange Commission – having purchased stock from the company. This kind of insider bullishness is not very usual, and thus deserves our full attention.
ADT Corp (NYSE:ADT) is a $5.6 billion market cap provider of electronic security, interactive home and business automation and related monitoring services. Its stock has taken a strong beating over the past two weeks -falling almost 19%, after reporting disappointing earnings and being downgraded by Oppenheimer on Thursday Jan. 30th. Insiders seem to have taken advantage of this opportunity to add this stock to their portfolios. Currently valued at around 17 times the company´s earnings, the stock trades at less than half the industry average of 38.3x P/E. However, its margins and returns still surpass, very comfortably, its peers´ mean.
Back to the transactions per se: the first insider to report a purchase, on Feb. 3rd, was Thomas Colligan, a Board Director at ADT Corp (NYSE:ADT). In two separate transactions, he bought a total of 3,000 shares, paying around $30.25 per share. He now owns 12,285 shares of the company.
Also on Feb. 3rd, Alan Ferber, President at ADT Corp (NYSE:ADT)´s Residential division, acquired 1,000 shares of Common Stock for a price $29.81 per share. He now owns 16,866 shares directly, plus the 1,000 shares that he just purchased are held indirectly.
Another Board Director that took advantage of the stock’s low price and was Richard Daly. Through five separate transactions, the insider procured 3,000 shares of ADT Corp (NYSE:ADT) for prices ranging from $30.19 to $30.23 per share.
The last insider that purchased ADT Corp (NYSE:ADT)´s stock on Feb. 3rd was Michael Geltzeiler, Chief Financial Officer, who, also through five separate transactions, added 10,000 shares to his holding. His position currently contains 31,900 shares of Common Stock.
On the days that followed, insider activity continued. On Feb. 4th, Shawn Lucht, Senior Vice President and Chief Customer Officer, acquired 2,500 shares for prices around $29.14 per share. He now owns 26,831 shares of the company.
The next day, Luis Orbegoso, President of ADT Corp (NYSE:ADT)’s Small Business Division, added 1,000 shares to his holdings, which now amount to 6,721 shares. He paid around $29.90 per share, having already perceived a small upside.
Last but not least is Donald Boerema, Chief Corp. Dev. Officer, who acquired in total around 1,000 shares. He now holds 34,365 shares, worth more than $1 million.
In addition to these insiders, several hedge funds hold big stakes in Corp (NYSE:ADT). I would like to highlight, amongst them, Eric Bannasch’s Cadian Capital, who has been bullish on the company and last reported having upped its position in the stock by 232%. The fund held more tan 2.3 million shares by the end of the third quarter.
Disclosure: Javier Hasse holds no position in any stocks mentioned