(List compiled by Eben Esterhuizen, CFA. Insider trading data sourced from Yahoo Finance.)
With the third quarter, and thus earnings season, coming to an end, there’s bound to be a few reporting companies that’ll blow away analyst expectations.
But how do you identify the companies that might report significant earnings surprises?
One way is to look at what insider executives are doing—if they are using their own money to buy the shares of their employers, it may signal that they think earnings estimates are too pessimistic.
To compile this list, we started with a universe of about 200 companies reporting earnings next week.
We then collected data on insider transactions, and identified the companies that have had the largest increases in insider ownership over the last six months.
These insiders seem to think their companies are being underestimated—will upcoming earnings result reflect insider optimism?
analyse These Ideas (Tools Will Open In A New Window)
1. USA Technologies Inc. (USAT): USA Technologies, Inc. supplies cashless, remote management, reporting, and energy management solutions to the unattended point of sale market principally in the United States. Scheduled to report earnings on 09/26/11. Over the last six months, insiders were net buyers of 20,740 shares, which represents about 0.07% of the company’s 29.28M share float.
2. First Interstate Bancsystem Inc. (FIBK): Operates as the bank holding company for First Interstate Bank that provides commercial and consumer banking services. Scheduled to report earnings on 09/27/11. Over the last six months, insiders were net buyers of 6,729 shares, which represents about 0.05% of the company’s 13.24M share float.
3. Texas Industries Inc. (TXI): Engages in the production and supply of heavy construction materials in the United States. Scheduled to report earnings on 09/28/11. Over the last six months, insiders were net buyers of 344,598 shares, which represents about 1.58% of the company’s 21.76M share float.
4. CalAmp Corp. (CAMP): Develops and markets wireless communications solutions that deliver data, voice, and video for critical networked communications and other applications in the United States. Scheduled to report earnings on 09/29/11. Over the last six months, insiders were net buyers of 30,000 shares, which represents about 0.13% of the company’s 23.89M share float.
Interactive Chart: Press Play to see how analyst ratings have changed for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.
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