American Woodmark Corporation (NASDAQ:AMWD)
Who Bought Shares: Director Vance Tang
How Many Shares Were Bought: 2,000 @ $97.55 per share
Date of the Transaction(s): March 28
Shares of American Woodmark Corporation (NASDAQ:AMWD) have been on a steep decline since February 22, falling by 29% to less than $100 per share. That prompted Director Vance Tang to make the first insider purchase of the company’s shares in over six years, lifting his position to 13,170 shares of the stock.
The manufacturer of bath and kitchen cabinetry and other related products widely missed estimates for its fiscal third-quarter EPS in early-March, with its adjusted EPS of $0.84 falling $0.13 short of the consensus. Revenue did come in higher than expectations at $293 million, topping estimates by $12.6 million.
American Woodmark Corporation (NASDAQ:AMWD) Falls to Pre-RSI Levels: The recent freefall has dragged shares back down to their November 2017 levels, just before American Woodmark Corporation (NASDAQ:AMWD) surged by 28% on December 1 after announcing that it would acquire private cabinet maker RSI Home Products in a deal valued at $1.08 billion.
The deal was likely seen even more positively than the 28% figure indicates, as American Woodmark released its fiscal second-quarter earnings on the same day, which missed estimates. Given RSI’s impressive $123 million in adjusted EBITDA in 2017, the acquisition was lauded by investors, with American Woodmark anticipating that its EBITDA margin would rise to 16% from just 12.3% as of the time of the deal.
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Colony NorthStar Inc (NYSE:CLNS)
Who Bought Shares: Director John Somers
How Many Shares Were Bought: 2,000 @ $5.66 per share
Date of the Transaction(s): March 29
Lastly is Colony NorthStar Inc (NYSE:CLNS), in which Director John Somers purchased 2,000 shares on March 29, lifting his stake in the REIT to 45,960 shares. The purchase comes less than a month after four other insiders made purchases in early-March following the stock’s latest implosion on March 1. Colony NorthStar Inc (NYSE:CLNS) shares have been crushed in 2018, shedding nearly half of their value.
Why Colony NorthStar Inc (NYSE:CLNS)’s Dividend Cut Was the Right Move: The mass exodus from the stock has been sparked by disappointing 2017 results and a massively slashed quarterly dividend, which the company cut to $0.11 per share from $0.27 per share. However, given shares’ recent freefall, the stock’s dividend yield is not far off where it began the year, and the savings could allow Colony NorthStar to instead buy back shares on the cheap, which could ultimately prove to be a far more effective use of that capital.
That’s exactly what the company plans to do, with the intent being to further deleverage and buy back shares in 2018, with those goals being further augmented by the sale of several non-core assets. President and CEO Richard Saltzman declared in a press release that the company expects to grow its dividend again in the future.
Disclosure: None
