Nomura Securities Retail Weekend Reading: Who’s Buying? CEO Ownership and Insider Buying
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Rating Summary:
12 Buy, 24 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Nomura Securities Retail Weekend Reading: Who’s Buying? CEO Ownership and Insider Buying
Nomura analyst, Paul Lejuez, said, "Who’s Buying? Not Too Many Softlines Insiders If insider buying is a sign of confidence in the business, then there is not too much optimism amongst softlines management teams these days. Looking at open market stock purchases reveals almost no insider buying in the past six months (despite stocks selling off significantly at times)."
"Only American Eagle (NYSE: AEO), Pacific Sunwear (Nasdaq: PSUN), rue21 (NYSE: RUE) and Talbots (NYSE: TLB) Have Seen Insider Buying - Aside from TLB CEO Trudy Sullivan’s 12k purchase of shares (which may have been made to comply with ownership requirements), not one other softlines CEO has made a direct purchase of shares. Directors of AEO, RUE, PSUN, and TLB have made small purchases in the last six months. In addition, Chairman Jay Schottenstein purchased ~1MM shares of AEO."
"Some Softlines CEOs Already Own A Lot of Stock: Limited (NYSE: LTD), Coach (NYSE: COH), Abercrombie & Fitch (NYSE: ANF) - On an absolute dollar basis, the CEOs that own the greatest stakes in their companies are LTD (~$2BN), COH (~$277MM), and ANF (~$147MM). In our view, it is understandable why these executives would not be purchasing stock on the open market (even if their stocks hit depressed levels) as much of their wealth is already tied-up in the stock. We also view it as portfolio diversification when these executives sell (nothing to get worried about)."
Nomura analyst, Paul Lejuez, said, "Who’s Buying? Not Too Many Softlines Insiders If insider buying is a sign of confidence in the business, then there is not too much optimism amongst softlines management teams these days. Looking at open market stock purchases reveals almost no insider buying in the past six months (despite stocks selling off significantly at times)."
"Only American Eagle (NYSE: AEO), Pacific Sunwear (Nasdaq: PSUN), rue21 (NYSE: RUE) and Talbots (NYSE: TLB) Have Seen Insider Buying - Aside from TLB CEO Trudy Sullivan’s 12k purchase of shares (which may have been made to comply with ownership requirements), not one other softlines CEO has made a direct purchase of shares. Directors of AEO, RUE, PSUN, and TLB have made small purchases in the last six months. In addition, Chairman Jay Schottenstein purchased ~1MM shares of AEO."
"Some Softlines CEOs Already Own A Lot of Stock: Limited (NYSE: LTD), Coach (NYSE: COH), Abercrombie & Fitch (NYSE: ANF) - On an absolute dollar basis, the CEOs that own the greatest stakes in their companies are LTD (~$2BN), COH (~$277MM), and ANF (~$147MM). In our view, it is understandable why these executives would not be purchasing stock on the open market (even if their stocks hit depressed levels) as much of their wealth is already tied-up in the stock. We also view it as portfolio diversification when these executives sell (nothing to get worried about)."
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Jay L. Schottenstein, NomuraSign up for StreetInsider Free!
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