Insider Buying at Philip Morris International Inc. (PM), Charles Schwab Corp (SCHW), and More

A holding company connected to an insider at NCI Building Systems, Inc. (NYSE:NCS) purchased 4,000 shares of stock on July 22nd. NCI Building Systems, Inc. (NYSE:NCS) manufactures metal components, and also produces metal coil materials to its own manufacturing unit and to outside customers. Acquisitions have helped the company grow its revenues, but the business has remained unprofitable even so and in the first half of its fiscal year cash flow from operations was negative. Analysts are optimistic about next year, and even so the forward earnings multiple is 21.

Multiple insiders have been buying stock in industrial real estate investment trust Terreno Realty Corporation (NYSE:TRNO); the company invests in buildings such as warehouses and distribution facilities near major metropolitan centers. Terreno Realty Corporation (NYSE:TRNO) recently increased its quarterly dividend payment to 13 cents per share, and at current prices that is an annual yield of 2.7%. Real estate investment trusts receive favorable tax treatment conditional on distributing a large share of taxable income to shareholders, which can result in high dividend yields; this is a lower yield than many REITs pay.

$240 million market cap biotechnology company Coronado Biosciences Inc (NASDAQ:CNDO)’s CFO bought about 4,500 shares (on average, about 400,000 shares are traded per day and the current stock price is over $8- making for more than $3 million in daily dollar volume). Coronado Biosciences Inc (NASDAQ:CNDO)’s products are designed to treat autoimmune diseases and cancer. As a development stage biotechnology company, it is not expected to achieve positive earnings either this year or next year. It should be noted that 18% of the float is held short as many market players are bearish.

Many of these companies do not seem interesting on a value basis, and do not seem like good investments at this time even considering the small level of average outperformance of insider purchases. While Philip Morris International Inc. (NYSE:PM)does offer a high yield, as has been mentioned this yield is not very high on a relative basis and so investors should probably look at other stocks in the industry.

Disclosure: I own no shares of any stocks mentioned in this article.