These Companies’ Insiders Are Expecting Future Stock Gains

Nordstrom Inc. (NYSE:JWN) has seen one of its Directors acquire a sizable block of shares this week. Philip G. Satre reported the acquisition of 17,600 shares on Monday at a price of $56.89 per share, all of which are held by the Satre Family Trust. After the recent purchase, the family trust fund holds an ownership stake of 42,361 shares. Just recently, the fashion specialty retailer slashed its sales and earnings per share guidance after reporting weaker-than-expected third quarter financial figures. Nordstrom’s net sales increased year-over-year to $3.2 billion for the quarter, but its same-store sales climbed by a mere 0.9%. The disappointing third quarter performance was mainly attributed to weaker sales trends, as less customers were shopping in Nordstrom’s stores. Just recently, UBS cut its price target on the stock to $63 from $82, while maintaining its ‘Buy’ rating. Meanwhile, the stock is down by 28% for the year, so it is no surprise to witness insiders purchase stock at the moment. The hedge fund sentiment towards the stock was very positive in the third quarter, as the number of smart money investors with positions in the company grew to 38 from 27 during the quarter. Ken Griffin’s Citadel Investment holds a 3.10 million-share position in Nordstrom Inc. (NYSE:JWN) as of the end of September.

Lastly, we will investigate the recent insider buying registered at Gap Inc. (NYSE:GPS). Chief Executive Officer Arthur L. Peck snapped up a 37,150-share stake on Monday at a weighted average price of $26.99, which is held by a trust fund. The CEO also holds a direct ownership stake of 129,160 shares. This purchase comes shortly after the global retailer offering apparel, accessories, and personal care products reported third quarter financial results that were in-line with analyst expectations and updated its full-year 2015 guidance.  The company reported earnings per share of $0.63 on revenue of $3.86 billion, compared with analyst estimates of EPS of $0.63 on revenue of $3.93 billion. Shares of Gap are down by 34% year-to-date, as the retailer has been struggling to turn around its Gap brand and improve its business performance. The number of hedge funds with positions in Gap at the end of the third quarter stood at 34, compared to only 21 at the end of the second one. Daniel S. Och’s OZ Management added a 2.80 million-share position in Gap Inc. (NYSE:GPS) to its portfolio during the third quarter.

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