Insider Buying Metric Points to Three Small-Cap Stocks Poised to Explode; Is Insider Trading Anomaly More Prominent Among Small-Caps?

Cincinnati Bell Inc. (NYSE:CBB) is another small-cap company that recently had two top executives pile up shares. To begin with, Chief Executive Officer and President, Theodore H. Torbeck, purchased 33,033 shares on Monday at a price of $3.05 per share, boosting his overall holding to 1.05 million shares. Furthermore, Chief Financial Officer, Leigh R. Fox, bought 3,212 shares on the same day for $3.07 each. After the recent purchase, the CFO currently holds a stake of 82,309 shares.

The stock of the regional provider of entertainment, data and voice communications services is 13% in the red year-to-date and has not traded above the $5 level since early 2013. The company had a strong 2015 in term of financial performance, as it experienced growth across its strategic products and successfully monetized a portion of its CyrusOne investment. In January 2013, Cincinnati Bell completed the initial public offering of CyrusOne, which currently operates the company’s former Data Center Collocation segment. In July 2015, Cincinnati sold 6.0 million operating partnership units for $28.41 apiece, which resulted in a third-quarter gain of $117.7 million. The company owns 11% of CyrusOne as of September 30. Meanwhile, Cincinnati Bell Inc. (NYSE:CBB)’s revenue for 2015 totaled $1.17 billion, which marked an increase of 1% year-on-year. Its management anticipates 2016 revenue of $1.2 billion. A total of 15 smart money investors among those we track held shares of Cincinnati Bell Inc. (NYSE:CBB) at the end of 2015, amassing 9.30% of the company. Jim Simons’ Renaissance Technologies reported owning 1.04 million shares of Cincinnati Bell Inc. (NYSE:CBB) in its latest 13F filing.

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