Insiders Have Bought Cognizant Technology Solutions Corp (CTSH), Ryman Hospitality Properties, Inc. (REIT) (RHP), and More

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Our database also tracked the CEO of $930 million market cap aerospace and industrial components company Kaman Corporation (NYSE:KAMN) buying shares. In addition, two more company insiders were buying the stock in May; consensus insider purchases are particularly bullish signals (read our thoughts on studies of consensus insider purchases). Revenue was flat in the first quarter of 2013 versus a year earlier, and between that and higher costs Kaman Corporation (NYSE:KAMN) experienced a 24% decline in net income. At a trailing P/E of 17, we think that even given the consensus buying the stock looks too pricy to make a good value play right now.

Multiple insiders have also been buying HollyFrontier Corp (NYSE:HFC), a $9 billion market cap oil and gas refining company. Downstream energy companies generally carry low earnings multiples in the current market environment, and HollyFrontier Corp (NYSE:HFC) is no exception with analyst forecasts for 2014 implying a forward P/E of only 8. The company’s revenue has been down recently, but we still think Hollyfrontier is worth comparing to its peers on a value basis. Renaissance Technologies, whose founder Jim Simons is now a billionaire, disclosed ownership of almost 3 million shares at the end of March (check out more stocks Renaissance owns).

An insider at VeriFone Systems Inc (NYSE:PAY) was buying the stock shortly after a roughly 20% plunge in the stock price, which in turn followed a disappointing report for the second quarter of Verifone’s fiscal year. During the quarter, the provider of business products such as electronic payment equipment recorded an operating loss even after adding back special items related to litigation loss contingencies. While analysts believe the company will recover, and the forward P/E is 10, we’d still avoid it for now given how much VeriFone Systems Inc (NYSE:PAY) has been struggling recently.

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

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