Strong Insider Buying Says These 3 Stocks Are Ready To Pop

Let’s now move on to Newport Corp (NASDAQ:NEWP), a leading global supplier of advanced-technology products and systems. Robert J. Phillippy, who has been President of Newport since July 2004 and Chief Executive Officer since September 2007, purchased 10,000 shares for $14.42 each on Tuesday, lifting his stake to 303,247 shares. It seems that the shares of Newport are close to rock-bottom at the moment, after losing nearly 22% year-to-date. Hence, the executive’s recent acquisition might indicate his confidence in the company’s future growth. Furthermore, Newport used $6.2 million of its $20.5 million in second-quarter cash from operations to repurchase 324,000 shares, which might serve as another indicator that the stock is relatively undervalued at the moment. The company will most likely continue to repurchase shares in the quarters ahead, as there are 2.7 million shares available for repurchase under the previously-authorized program by its board of directors. Ken Griffin’s Citadel Investment Group initiated a position in Newport Corp (NASDAQ:NEWP) during the second quarter, consisting of 49,978 shares.

Finally, we will take a look at the insider buying activity at Francesca’s Holdings Corp (NASDAQ:FRAN), which had two different insiders buy shares this week. Michael W. Barnes, who is the Chairman, President, and CEO of the company, acquired a 26,000 share-stake at a price of $11.66 per share. Similarly, one of the company’s directors, Martyn R. Redgrave, purchased a smaller stake comprised of 21,000 shares for $11.88 apiece. Unquestionably, the executives’ message to the market is that the stock is seriously undervalued at the moment, following a year-to-date drop of over 28%. Earlier this month, Francesca’s Holdings posted net sales of $106.0 million for its fiscal second quarter of 2016 that ended August 1, compared with $97.3 million reported a year ago. The sales growth is mainly attributed to the 82 new boutique openings over the past one-year period. Moreover, the company’s income from operations came to $15.2 million, down from $16.7 million reported last year. Mariko Gordon’s Daruma Asset Management is the largest equity holder of Francesca’s Holdings Corp (NASDAQ:FRAN) within our database, owning 3.89 million shares.

Disclosure: None