Insiders are Buying these 7 Stocks with Encouraging Receivable Trends

Insiders are Buying these 7 Stocks with Encouraging Receivable Trends

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Do you like to follow the trends of company insiders? Do you consider accounting trends before making an investment? If so, this stock list may be of interest to you. 

Insiders, naturally, work at the companies in question and have more knowledge about the firm than outsiders. When they put their own money on the line to purchase their company's shares it indicates they are bullish about the firm's future, and believe current share price is undervalued.

With this in mind we collected data on insider buying, and identified the names that have seen bullishness from company executives, with net insider purchases representing at least 1% of share float.

We then decided to look for positive fundamental trends are an encouraging sign for investors. From our list, we analyzed the financials of the companies to look for those stocks with strong sales trends, comparing growth in revenue to growth in accounts receivable. Since accounts receivable is the portion of revenue not yet received, and there is no guarantee the money will ever be received, the smaller the portion of revenue made up of receivables, the healthier the company's revenue.

These stocks are seeing faster growth in revenue than accounts receivable year-over-year, as well as accounts receivable comprising a smaller portion of current assets over the same time period.

Business Section: Investing Ideas

The following 7 stocks made our list. Do you think insiders are right to invest in these names? Use this as a starting point for your own analysis. List Average 1-Year Return: 6%

1. AGCO Corporation (AGCO, Earnings, Analysts, Financials): Distributes agricultural equipment and related replacement parts worldwide. Market cap at $4.87B, most recent closing price at $50.22.

Over the last six months, insiders were net buyers of 3,008,381 shares, which represents about 3.24% of the company's 92.96M share float.

Revenue grew by 7.37% during the most recent quarter ($2,703.4M vs. $2,517.8M y/y). Accounts receivable grew by -7.% during the same time period ($924.6M vs. $994.2M y/y). Receivables, as a percentage of current assets, decreased from 27.14% to 23.38% during the most recent quarter (comparing 3 months ending 2012-12-31 to 3 months ending 2011-12-31).
 

2. Breeze-Eastern Corporation (BZC, Earnings, Analysts, Financials): Designs, develops, manufactures, sells, and services lifting and restraining products for specialty aerospace and defense applications. Market cap at $78.35M, most recent closing price at $8.23.

Over the last six months, insiders were net buyers of 33,362 shares, which represents about 1.31% of the company's 2.54M share float.

Revenue grew by 2.91% during the most recent quarter ($20.17M vs. $19.6M y/y). Accounts receivable grew by -36.75% during the same time period ($10M vs. $15.81M y/y). Receivables, as a percentage of current assets, decreased from 30.81% to 20.5% during the most recent quarter (comparing 3 months ending 2012-12-31 to 3 months ending 2011-12-31).
 

3. DaVita, Inc. (DVA, Earnings, Analysts, Financials): Provides kidney dialysis services in the United States. Market cap at $12.42B, most recent closing price at $117.74.

Over the last six months, insiders were net buyers of 3,692,072 shares, which represents about 3.51% of the company's 105.09M share float.

Revenue grew by 38.65% during the most recent quarter ($2,426.94M vs. $1,750.43M y/y). Accounts receivable grew by 18.% during the same time period ($1,742.43M vs. $1,476.63M y/y). Receivables, as a percentage of current assets, decreased from 64.39% to 60.53% during the most recent quarter (comparing 3 months ending 2012-12-31 to 3 months ending 2011-12-31).
 

4. Janus Capital Group, Inc. (JNS, Earnings, Analysts, Financials): A publicly owned asset management holding company. Market cap at $1.77B, most recent closing price at $9.28.

Over the last six months, insiders were net buyers of 30,846,700 shares, which represents about 17.17% of the company's 179.68M share float.

Revenue grew by 0.46% during the most recent quarter ($216.6M vs. $215.6M y/y). Accounts receivable grew by -12.64% during the same time period ($103.7M vs. $118.7M y/y). Receivables, as a percentage of current assets, decreased from 14.03% to 11.67% during the most recent quarter (comparing 3 months ending 2012-12-31 to 3 months ending 2011-12-31).
 

5. Providence Service Corp. (PRSC, Earnings, Analysts, Financials): Provides and manages government sponsored social services and non-emergency transportation services. Market cap at $245.63M, most recent closing price at $19.19.

Over the last six months, insiders were net buyers of 624,836 shares, which represents about 5.7% of the company's 10.97M share float.

Revenue grew by 18.99% during the most recent quarter ($280.29M vs. $235.55M y/y). Accounts receivable grew by 12.77% during the same time period ($98.71M vs. $87.53M y/y). Receivables, as a percentage of current assets, decreased from 54.89% to 53.66% during the most recent quarter (comparing 3 months ending 2012-09-30 to 3 months ending 2011-09-30).
 

6. SandRidge Energy, Inc. (SD, Earnings, Analysts, Financials): Operates as an independent natural gas and oil company in the United States. Market cap at $2.79B, most recent closing price at $5.65.

Over the last six months, insiders were net buyers of 7,971,966 shares, which represents about 2.48% of the company's 321.60M share float.

Revenue grew by 257.93% during the most recent quarter ($1,338.1M vs. $373.84M y/y). Accounts receivable grew by 115.91% during the same time period ($445.51M vs. $206.34M y/y). Receivables, as a percentage of current assets, decreased from 46.7% to 38.98% during the most recent quarter (comparing 3 months ending 2012-12-31 to 3 months ending 2011-12-31).
 

7. ViaSat Inc. (VSAT, Earnings, Analysts, Financials): Engages in the design, production, and marketing of satellite and other wireless communication, and networking systems for government and commercial customers. Market cap at $2.14B, most recent closing price at $47.96.

Over the last six months, insiders were net buyers of 1,109,880 shares, which represents about 4.69% of the company's 23.65M share float.

Revenue grew by 39.75% during the most recent quarter ($286.44M vs. $204.96M y/y). Accounts receivable grew by 16.14% during the same time period ($237.55M vs. $204.53M y/y). Receivables, as a percentage of current assets, decreased from 47.58% to 44.52% during the most recent quarter (comparing 3 months ending 2012-12-28 to 3 months ending 2011-12-30).
 

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