After pulling a U-Turn, showing some strength and then stalling, insider buying picked-up the pace a touch last week. The number of purchase records moved to 457 from 362 from week-to-week. The uptick happened in a week when stocks hopped up-and-down faster than a fire-walker without mind control.
As our regular insider readers know, iStock likes to look beyond the obvious and seeks cluster buys, eight figure buys, past-performance of previous buys… we also like to consider the background of the buyer. Who is he/she? Then, connect some dots based on the profile we piece together since the insider doesn't put a reason for buying in their Form 4; although, it would be tremendously helpful if they did.
This week's candidate, Phillips 66 (PSX) hits on a couple of iStock's favorite markers. Phillips 66 operates as an independent downstream energy company. The company operates in three segments: Refining and Marketing (R&M), Midstream, and Chemicals.
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Director, William Loomis, Jr. purchased 7,760 shares at $64.42 for a total investment of $499,905. Mr. Loomis has a strong past-performance track record of getting it right with PSX.
Previously, he bought in May 2012 at $31.69 and January 2013 at $51.77. Both purchases were non open-market acquisitions; no matter though as the performance speaks for itself. This time around, however, the director put a buy order in with his broker and bought like any other individual investor.
[Related -Phillips 66 (PSX): Puts Active]
It's our opinion that Mr. Loomis is not an ordinary investor or insider at PSX. He serves on the audit and finance, public policy and executive committees i.e. he's a numbers cruncher. Getting a crack at the financial statements compliments his previous experience all too well. You see, he was a general partner and managing director of Lazard Freres & Co. from 1984 to 2002, the CEO of Lazard LLC from 2000 to 2001 and a limite! d managing director of Lazard LLC from 2002 to 2004.
Lazard is the world's leading independent, financial advisory and asset management firm, advises on mergers, acquisitions, restructuring, capital structure and strategy. Considering Loomis' background, is it any wonder why he "gets it right" when buying PSX?
Analysts appear to share some of the director's enthusiasm. Six analysts upped their earnings estimate for the current quarter within the last 30 days, and seven analysts increased their view for the next quarter during the same timeframe.
Overall: William Loomis, Jr.'s track-record and background makes his recent Phillips 66 (PSX) purchase stand out relative to all others in the past week. Investors might consider following this money man's lead.
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