Insiders Have Bought Accenture Plc (ACN), Walgreen Company (WAG) and More

Dragon Global Holdings, a company related to the CEO of Endurance Specialty Holdings Ltd. (NYSE:ENH) bought about 3,100 shares of the stock on July 11th. Endurance Specialty Holdings is a $2.3 billion market cap insurance company specializing in property and casualty insurance and reinsurance. Its earnings have been up significantly, though digging into the company’s most recent quarterly report this was due to higher net margins resulting from lower net losses and loss expenses. While the stock is cheap in book terms, the trailing P/E of 16 is a bit outside value territory.

Many of these stocks seeing insider buying recently actually don’t look too appealing at first glance. Brown-Forman looks quite pricy as far as its trailing earnings multiple, and so even though the business has been growing nicely we think that we would avoid it. Verifone is struggling, according to its reports, and we’d at least want to see a reversal of fortune before considering it. The other three stocks covered here aren’t trading at enormously high valuations, but in each case the company’s recent earnings growth has been rooted in expanding net margins and so we are skeptical that they will be able to improve enough going forward to justify their current valuations.

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