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 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

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!