Three Stocks With Explosive Insider Buying Activity

A Schulman Inc. (NASDAQ:SHLM) saw two different insiders purchase shares this week. Director Irvin D. Reid bought 5,000 shares on Tuesday at a weighted average price of $22.16, boosting his overall holding to 21,003 shares. Heinrich Lingnau-Schneider, Senior Vice President and General Manager of EMEA Region, acquired a 4,000-share block on the same day at prices between $23.57 and $23.83 per share, and currently owns 12,761 shares.

The shares of the supplier of high-performance plastics and resins plummeted significantly following the release of the company’s fiscal year 2016 first-quarter financial results earlier this month. A Schulman reported net income per share of $0.18 for the quarter, down from $0.45 reported a year ago. The bottom-line figure was impacted by transitory costs associated with an ongoing investigation on quality reporting issues that were identified at two manufacturing facilities back in August. The company’s net sales for the three-month period that ended November 30 totaled $649.2 million, up from $615.1 million reported a year ago. The currency exchange translations had a negative impact on the company’s top-line growth, while the increase in revenue was mainly attributable to a recent acquisition. In the meantime, the stock trades at a very cheap forward P/E ratio of 6.96, so Schulman’s shares might embark on an uptrend in the future should those internal issues be resolved. Mariko Gordon’s Daruma Asset Management reported ownership of 1.59 million shares of A Schulman Inc. (NASDAQ:SHLM) through its 13F for the September quarter.

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