These Companies’ Insiders Are Acting As Value-Oriented Investors

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Let’s now turn our focus on AAR Corp. (NYSE:AIR), a provider of products and services to commercial aviation, government, and defense markets. Director Marc J. Walfish purchased 20,000 shares for $18.84 each earlier this week. After the recent transaction, the director currently owns 97,158 shares valued at $1.89 million. It is also worth pointing out that this is the first insider purchase at the company over the past few years, which clearly emphasizes its importance. The shares of AAR have been on a decline since mid-July, with the stock having lost more than 29% since the beginning of the year, and the recently-released financial results for the company’s fiscal first quarter of 2016 did not put an end to the downtrend. The company posted sales of $377.8 million for the quarter, compared to $395.1 million reported a year ago. Similarly, the company’s income from continuing operations came to $8.2 million, down from $11.8 million reported in the same quarter a year ago. Daniel Lewis’ Orange Capital added a 598,000 share-position in AAR Corp. (NYSE:AIR) to his portfolio during the June quarter, making it one of the largest equity holders of the company from our database.

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Finally, Ollie’s Bargain Outlet Holdings Inc. (NASDAQ:OLLI) saw two of its directors acquire stock this week. Robert N. Fisch acquired a new stake of 5,000 shares at a price of $16.25 per share. At the same time, Thomas T. Hendrickson purchased a 9,116 share-stake at prices ranging from $16.19 to $16.77. However, it is also worth pointing out that the retailer went public this July by selling 8.9 million shares of common stock to the public at an IPO price of $16.00 per share. The stock reached price levels of over $21 following its IPO, but the gains have been fading away over time. Even so, the shares of Ollie are still trading above the $16 price level. Considering the fact that the company delivered a strong financial performance during the second quarter of 2015, these directors might have acquired the company’s shares on weakness. Many believe that the insider buying activity at newly-public companies is not that informative, but it appears that both directors tend to be acting in the fashion of value-oriented investors in this case.

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Disclosure: None

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