Two Insiders Bought Web.com

Page 1 of 2

Two members of Web.com Group, Inc. (NASDAQ:WWWW)’s Board of Directors, Deborah Quazzo and Philip Facchina, reported buying shares of the stock on December 13th at prices of about $14 per share. Quazzo purchased 7,100 shares- giving her a total of nearly 40,000 shares- while Facchina’s direct holdings now sit at just over 52,000 shares after buying 10,000 shares on the same day. See a history of insider purchases at Web.com. Studies show that insider purchases are bullish signs (read more about studies on insider trading), and when insider trading filings show consensus insider buying it is particularly bullish on average. Web.com provides domain services for small businesses in the Americas and in Britain.

Web.com Group Inc (NASDAQ:WWWW)

Deloitte recently named Web.com Group, Inc. one of the fastest growing technology companies in North America, and that’s quite apparent when looking at the company’s most recent 10-Q: revenue in the third quarter of 2012 came in at $106 million, easily more than double the $44 million in sales from a year ago. In the first nine months of the year revenue had been up 136%. However, costs have also been up and as a result Web.com reported a slightly larger operating loss last quarter than in the third quarter of 2011. With interest expenses also being high, losses per share were 45 cents (as opposed to 19 cents in the same period in the previous year). Cash flow from operations has also grown, enough so that Web.com Group, Inc. has been paying down at least some of its substantial debt.

While the company is unprofitable for 2012, the market capitalization of $700 million (with plenty of daily dollar volume for most investors) places its valuation at 8 times forward earnings estimates. The sell-side’s optimism doesn’t end there; in their eyes, earnings growth will continue over the next several years and so the five-year PEG ratio is 0.6. Columbus Circle Investors, managed by Donald Chiboucis, initiated a position of about 840,000 shares last quarter (check out more of Chiboucis’ stock picks). However, a number of market players seem very bearish on the stock as the most recent data shows that 31% of the outstanding shares are held short.

Page 1 of 2
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

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

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

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!