Why Are Insiders Buying These Three Stocks?

Investment banking and institutional brokerage firm FBR & Co (NASDAQ:FBRC) has also seen high insider trading activity on the buy side recently. President and Chief Executive Officer Richard J. Hendrix acquired 2,500 shares for $19.85 each and currently owns 274,195 shares. This move also comes after the company reported its financial results for the third quarter. Nevertheless, FBR & Co (NASDAQ:FBRC) disclosed disappointing financial results, which were partially impacted by the recent high market volatility. The firm’s net revenues decreased to $25.58 million from $42.10 million reported a year ago. At the same time, the investment bank reported a net loss of $3.4 million, compared with net income of $3.5 million registered in the same quarter of last year. However, FBR & Co pays out an annualized cash dividend of $0.80 per common share, which offers a current dividend yield of 4.04%. All in all, given that the stock has lost nearly 19% since the beginning of the year, the executive might be acquiring shares on weakness at the moment. Royce & Associates, founded by Chuck Royce, was the top stockholder of FBR & Co (NASDAQ:FBRC) within our database at the end of the second quarter, holding a stake of almost 299,000 shares.

Finally, Baylake Corporation (NASDAQ:BYLK)’s Director Louis James Jeanquart bought 3,000 shares on Friday at a price of $14.45 per share. Following the acquisition, the Director currently holds a direct ownership stake of 303,779 shares, along with an additional 37,506 shares held indirectly. At the beginning of September, the bank holding company for Baylake Bank announced its merger with Nicolet Bankshares Inc. (OTCBB:NCBS), which will create the fourth-largest bank headquartered in Wisconsin by deposit market share. As a result, each shareholder of Baylake Corporation (NASDAQ:BYLK) will receive a fixed ratio of 0.4517 shares of Nicolet common stock per each share of Baylake. The value of the deal is estimated to be approximately $141 million, which yields a transaction value of $15.02 per share of Baylake stock. Let’s not forget to mention that the merger is set to be completed in the second quarter of 2016.

Disclosure: None