Three Small-Cap Financial Stocks That Insiders Have Bought Recently

Academic studies have shown that stocks bought by insiders outperformed the market by an average of 7 percentage points a year. Thus, in this article, I will analyze three companies within the financial sector that saw their insiders buy their stock over the past few days.

The largest company in this list is State Auto Financial (NASDAQ:STFC), a $936.9 million market cap property and casualty insurance holding company, which is engaged in writing both personal and business lines of insurance. Between June 2 and June 5, State Automobile Mutual Insurance Co, Large Shareholder (more than 10%), acquired 20,017 shares of Common Stock for prices ranging from $20.94 per share to $21.84 per share. After spending $427,485 in stock, the insider owns more than 25.45 million shares, worth over $583 million.

State Auto Financial

In addition, Chuck Royce’s Royce & Associates last declared having upped its stake in the company by 4%, and now owns 535,064 shares.

The second-runner-up is Independent Bank Group Inc (NASDAQ:IBTX), an $846.3 million market cap Texas-registered bank holding company that saw 10 of its insiders purchase its stock on June 5 for prices ranging from $48.72 per share to $50.40 per share, spending a total of $ 611,747.86. Amongst them I would like to highlight Torry Berntsen (President and COO), who acquired 2,500 shares and now owns 65,829 shares. Moreover, the company’s CEO, David Brooks, bought 1,000 shares and currently holds more than 1 million shares of Independent Bank Group.

On top of the insider bullishness, several hedge funds seem confident on this company’s future. For instance, Neil Chriss’ Hutchin Hill Capital last disclosed ownership of 95,100 shares, up 24% in relation to the previous quarter. Chuck Royce is also amongst the firm’s largest hedge fund investors, with 169,500 shares.

Western Asset Mortgage Capital Corp (NYSE:WMC) is a $615 million market cap residential real estate finance company that invests in residential mortgage assets in the United States. The Company is primarily focused on investing in, financing and managing Agency RMBS. On June 6, Anup Agarwal, Chief Investment Officer, started a position in the company’s stock. He acquired 11,000 shares of Common Stock for prices ranging from $14.43 per share to $14.47 per share, inclusive, and spent a total of almost $160,000.

Another prominent investor that lately started a position in Western Asset Mortgage Capital Corp is Jim Simons’ Renaissance Technologies, which acquired 148,964 shares over Q1. Furthermore, Daniel S. Och’s Oz Management recently increased its exposure to the company by 10% and now holds 377,492 shares, worth roughly $5.9 million.

 

Disclosure: Javier Hasse holds no position in any stocks mentioned

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

Bloodiest UFC Fights Ever Fought

Most Expensive Rum Brands in the World

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!