Exploding Insider Buying at This Struggling Homebuilder and Two Other Companies

Cubic Corporation (NYSE:CUB) had not witnessed any insider buying activity since early 2010 until this week. Director John H. Warner Jr. acquired 6,000 shares on Monday and 3,000 shares on Tuesday at prices ranging from $30.17 to $32.70 per share. After the recent purchases, the Director holds an ownership stake of 14,726 shares. The provider of systems and solutions to the transportation and global defense markets has seen its stock tumble by 34% thus far in 2016, partly owing to the company’s disappointing earnings report for the first quarter of fiscal year 2016 that ended December 31. Cubic generated sales of $313.8 million for the quarter, compared to $318.5 million reported for the first quarter of the prior fiscal year. The decrease was mainly attributable to a decrease in sales of 4% from Cubic Transportation Systems, which offers integrated systems for transportation and traffic management, and a decrease of 2% in sales from Cubic Global Defense Systems, which supplies live and virtual military training systems, and other related products to the U.S Department of Defense. Furthermore, the company reported a net loss of $5.4 million for the first quarter of fiscal year 2016, compared to net income of $5.2 million reported a year earlier.

Earlier this month, Cubic Corporation completed the acquisition of GATR Technologies, a manufacturer of next-generation deployable satellite communication terminal solutions, for $232.5 million, which will expand the portfolio of communication solutions offered by Cubic’s Global Defense business unit. Richard S. Pzena’s Pzena Investment Management owns 501,384 shares of Cubic Corporation (NYSE:CUB) as of the end of the fourth quarter.

Disclosure: None