Insiders Have Bought Apache, Freeport-McMoRan, and More

Ultra Petroleum Corp. (NYSE:UPL) had a company officer buy 3,000 shares of stock at an average price of $16.20 per share. In contrast to Apache, Ultra generates the majority of its revenue from natural gas sales; as a result, low natural gas prices have caused a steep decline in pretax income. Peers such as Chesapeake and SandRidge are also suffering under current market conditions. The sell-side is projecting $1.18 in earnings per share for 2013, which would be a current-year P/E of 14. While that would qualify Ultra for value status we would not want to be so dependent on analyst forecasts and so we would avoid the stock.

A member of Pall Corporation (NYSE:PLL)’s Board of Directors purchased nearly 3,000 shares of stock, which nearly doubled the size of his stake in the $7.7 billion market laboratory and industrial equipment company. While net income was down in Pall’s most recent quarter (which ended in January) compared to the same period in the previous fiscal year, this was entirely due to losses from discontinued operations- earnings from continued operations, as well as revenue, were up. At 19 times trailing earnings we think that the stock looks pricy, though we did find it trading only slightly above some of its peers.

Our database of insider trading filings shows that multiple insiders have been buying Boulder Brands Inc (NASDAQ:BDBD) this month. Boulder changed its name from Smart Balance in December to reflect that it currently owns not only that brand but also some recent acquisitions producing natural and diet compliant foods (gluten-free products, for example). Consensus insider purchases are particularly likely to be bullish signals. While we do think that Boulder has substantial growth opportunities from its growing Natural division, Smart Balance products- which are still responsible for about half of sales- have been struggling in the market yet the current-year P/E is 32.

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