Two Small-Cap Consumer Cyclical Stocks That Insiders Are Buying

Tracking hedge fund and insider transactions is crucial to our investment strategy. Our research has shown that the 15 most popular small-cap stocks among hedge funds historically have outperformed the overall market (see the details). In addition, recent studies on insider trading have shown that investors can outperform the market by 7 percentage points by following certain insider purchases.
In this article I will look into two small-cap companies in the Cyclical Consumer Goods & Services sector that have witnessed insider purchases over the past few weeks, despite the fact that they both trade above their industry average valuations.

Natural Grocers by Vitamin Cottage Inc (NYSE:NGVC) is a $543 million market cap specialty retailer of natural and organic groceries and dietary supplements that has been delivering average revenue growth above 23% over the past five years (compared to an industry mean of 1%-2%). This kind of growth has led to one of the highest valuations in the grocery stores industry: the stock trades at 42.4 times the company´s earnings, well above the 11.2x P/E industry mean.­ Nonetheless, four insiders bought the company´s stock over the past few days.

Natural Grocers by Vitamin Cottage Inc (NYSE:NGVC)

On May 6, Kemper Isely, Chairman and Co-President, purchased 10,000 shares of Common Stock for an average price of $23.93 per share, and now owns 3,107,402 shares of the company. On that same date, Richard Halle, Board Director, acquired 4,000 shares of the company; 2,000 of them for $23.78 per share, and another 2,000, for $23.96 per share. Mr. Halle now holds 10,064 shares of Natural Grocers.

The following day, Edward Cerkovnik, Board Director, started a position in the stock with 3,500 shares, for which he paid prices ranging from $22.63 per share to $22.73 per share. In addition, Elizabeth Isely, Executive Vice President and 13D Group Member, bought 10,000 shares of Common Stock, for prices ranging from $22.54 to $22.74 per share, inclusive, and now owns around 1.26 million shares. Other investors worth mentioning are Donald Chiboucis, Richard Driehaus and Israel Englander, all of which hold millionaire stakes in the company.

The second company in this list is Superior Industries International Inc. (NYSE:SUP), a $531 million market cap designer and manufacturer of aluminum road wheels, which are sold to original equipment manufacturers (automobile and light truck manufacturers). Despite its razor thin margins and returns, and an above average valuation, Donald Stebbins, President and CEO, acquired 12,500 shares of Common Stock on May 7. He paid $19.40 per share and now owns 145,000 shares of the company. In addition, several prominent investors are also betting on this company. Amongst them we can count Mario Gabelli, with 2.30 million shares, and Chuck Royce, with approximately 495,000 shares.

Disclosure: Javier Hasse holds no position in any stocks mentioned

Recommended Reading:

ValueAct Capital Buys More Than $116 Million in Microsoft (MSFT) Shares

AOL, Inc. (AOL), F.N.B. Corp (FNB): Mid-Cap Stocks That Insiders Like

Two Oil & Gas Stocks With Multiple Insider Purchases

blog comments powered by Disqus
Insider Monkey Headlines
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

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

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!