According to the Insider Cluster Buys Screen, a Premium feature of GuruFocus, five stocks that have high number of unique insider buys over the past three months are Air Transport Services Group Inc. (ATSG), Beyond Air Inc. (XAIR), Charles Schwab Corp. (SCHW), Valley National Bancorp (VLY) and NewtekOne Inc. (NEWT).
Legendary Fidelity Magellan Fund manager Peter Lynch once opined that while company insiders may sell shares for several reasons, they typically buy shares only when they believe their company’s stock is set to appreciate. As such, investors can find opportunities in stocks that had multiple board members and C-level employees buy shares over the past three months.
GuruFocus’ Insider Cluster Buys Screen contains several filters, including number of insider buys and number of unique insider buys. The former tracks the total number of buy transactions made by insiders while the latter counts each insider just once.
The insider transactions are primarily sourced from Securities & Exchange Commission Form 4 filings. Any insider who makes a change in his or her ownership stake in the company through an open market purchase or sale or through other means like conversion of options must file a Form 4. GuruFocus only tracks the open market purchases and sales from insiders.
Air Transport Services Group
Eleven insiders purchased shares of Air Transport Services Group (ATSG) over the past three months. The total number of shares purchased across 16 transactions was 23,090.
Shares of Air Transport Services Group traded around $19.83 as of Tuesday, showing the stock is modestly undervalued based on its price-to-GF Value ratio of 0.75.
The Wilmington, Ohio-based airfreight and logistics company has a GF Score of 90 out of 100 based on a rank of 9 out of 10 for profitability and GF Value, a growth rank of 10 out of 10 and a rank of 4 out of 10 for financial strength and momentum.
Air Transport Services Group’s high profitability rank is driven by several positive investing signs, which include a 3.5-star business predictability rank and an operating margin that has increased by approximately 10% per year on average over the past five years and outperforms more than 68% of global competitors.
Gurus with holdings in Air Transport Services Group include Private Capital, Steven Cohen, and Barrow, Hanley, Mewhinney & Strauss.
Beyond Air
Eight insiders purchased shares of Beyond Air (XAIR) during the past three months. The total number of shares purchased across 13 transactions was 131,588.
Shares of Beyond Air traded around $6.18 on Tuesday, showing the stock is significantly overvalued based on its price-to-GF Value ratio of 1.70.
The Garden City, New York-based clinical-stage biotech company has a GF Score of 44 out of 100 based on a financial strength rank of 7 out of 10, a momentum rank of 3 out of 10 and a rank of 1 out of 10 for profitability and GF Value. Despite this, the company does not have enough data to compute a growth rank and thus, the GF Score may give an incomplete picture of its potential.
Beyond Air’s high financial strength is driven by several positive investing signs, which include cash-to-debt and debt-to-equity ratios outperforming over 73% of global competitors.
Charles Schwab
Ten insiders purchased shares of Charles Schwab (SCHW) over the past three months. The total number of shares purchased across 12 transactions was 135,844.
Shares of Charles Schwab traded around $54.01 on Tuesday; the stock is significantly undervalued based on its price-to-GF Value ratio of 0.67.
The Westlake, Texas-based brokerage and wealth management company has a GF Score of 80 out of 100 based on a growth rank of 9 out of 10, a GF Value rank of 8 out of 10, a profitability rank of 7 out of 10, a financial strength rank of 4 out of 10 and a momentum rank of 2 out of 10.
Charles Schwab’s profitability ranks 7 out of 10: Even though the company’s return on assets underperforms more than half of global competitors, it has a five-star business predictability rank and a return on equity that outperforms more than 80% of global capital market companies.
Valley National Bancorp
Ten insiders purchased shares of Valley National Bancorp (VLY) over the past three months. The total number of shares purchased across 11 transactions was 260,974.
Shares of Valley National Bancorp traded around $8.40 on Tuesday, approximately 38% below its GF Value. Despite this, GuruFocus’ GF Value Line labeled the New York-based bank a possible value trap based on low ranks for financial strength, growth and momentum. GuruFocus gave Valley National Bancorp the GF Score of 68 out of 100.
Valley National Bancorp’s low growth rank is driven by three-year revenue and earnings growth rates that underperform more than half of global competitors.
NewtekOne
Ten insiders purchased shares of NewtekOne (NEWT) over the past three months. The total number of shares purchased across 11 transactions was 61,998.
Shares of NewtekOne traded around $12.68 on Tuesday, approximately 33% below its GF Value. Despite this, GuruFocus’ GF Value Line labeled the Boca Raton, Florida-based financial technology solutions company a possible value trap based on low ranks for financial strength, growth and momentum.
GuruFocus gave NewtekOne a GF Score of 70 out of 100.
Originally published on GuruFocus.com
I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
The views of this author are solely their own opinion and are not endorsed or guaranteed for accuracy by GuruFocus.com or GuruFocus Investments, LLC, a registered Investment Advisor (“GuruFocus”). The information presented should not be relied upon as investment advice and is neither a recommendation to enter into a particular transaction nor a representation that any security or strategy discussed is suitable or appropriate for you. In particular, the fact that a third-party manager is featured on GuruFocus.com should not be viewed as a recommendation or endorsement of such third-party manager. As with any analysis, past performance is never a guarantee of future performance.
GuruFocus, its owners, directors, employees, respective clients and subscribers of GuruFocus.com may at any time own and trade securities discussed in this column. This may pose a conflict of interest and should be a significant factor you consider in evaluating the information presented. It is also possible that GuruFocus and its owner may have a negative view of the securities discussed and would not recommend the securities presented as an investment. GuruFocus does not receive direct compensation from any third-party manager featured. However, GuruFocus may receive indirect benefits such as referrals, notoriety or social media exposure.
GuruFocus’ evaluation methodology is dependent upon securities holdings data as reported by Rule 13F of the Securities Exchange Act. As a means of transparency to investors, Rule 13F requires certain large institutional investment advisors that have discretion over client assets to make public their securities holdings of certain securities on a quarterly basis. GuruFocus relies upon the reported 13F holdings as source data for its analysis. However, there are inherent limitations in 13F information that should be considered when relying upon analysis dependent upon 13F reported holdings such as, but not limited to the following: smaller investment advisors and/or those without discretion are not required to report holdings at all, not all security types are required to be reported and as with any third-party data, the holdings, share amounts and market values may be inaccurate, outdated, incomplete, or overstated. As with any analysis, past performance is never a guarantee of future performance.
