Smart Money: Low-Debt Growth Stocks Boosted by Insiders and Big Money Managers

Smart Money: Low-Debt Growth Stocks Boosted by Insiders and Big Money Managers

Research  these Stocks on Kapitall’s Playground Now

 
research now

Another historic moment to mark on the calendar: The US national debt has eclipsed the entire US economy.

The amount of money the federal government owes to its creditors, including the money owed to itself, such as IOUs to government retirement, social security and other programs, has hit $15.23 trillion.

The total money owed is equivalent to the estimated value of all goods and services the US economy produces in a year, an amount valued at $15.17 trillion as of September. This comes across as a troubling sign.

"Long-term projections suggest the debt will continue to grow faster than the economy, which would have to expand by at least 6% a year to keep pace," reports USA Today.

US joins five other advanced nations with debt greater than their economies: Greece, Iceland, Italy, Japan and Portugal.

Perceptions of Debt

National debt can be a difficult thing to understand. The government owes approximately $4.7 trillion of the debt to itself, and that payment is less of an immediate issue.

By discounting the US government to US government debt, the debt is roughly $10.5 trillion, about 70% of the national economy. This is still very high.

The size of the debt also minimizes the importance of Congress' August agreement to cut $1 trillion from federal agencies over ten years. An additional $1.2 trillion in automatic spending cuts will begin next year if Congress cannot agree to better ways to curb more spending.

Business Section: Investing Ideas

Bearish investors are worried that debt growth will outpace economic growth. With this in mind, we wanted to take a closer look at low-debt companies that are expected to grow rapidly over the next five years.

As a start, we collected data on institutional money flows, and identified low-debt, high-growth stocks that have seen significant buying from big money managers over the last 3 months.

To further refine the quality of the list, we collected data on insider transactions, and identified a list of stocks that have seen significant insider buying over the last six months.

Theoretically, insiders know more about their companies than anyone else. So if they're using their own cash to buy the shares of their employers, you better pay close attention.

Insider executives and big money managers, aka "smart money investors," are optimistic about the outlook of these companies–do you agree with them?

 Interactive Chart: Use the Compar-O-Matic to compare analyst ratings for the stocks mentioned below.

 

1. NeoPhotonics Corporation (NPTN, Earnings, Analysts, Financials): Engages in the design and manufacture of photonic integrated circuit (PIC) based modules and subsystems for bandwidth-intensive, high-speed communications networks. Earnings per share growth projected at 52.0% over the next 5 years. The company's LongTermDebt/Equity ratio stands at 0.0%, while the TotalDebt/Equity ratio stands at 7.0%. Net institutional purchases in the current quarter at 821.4K shares, which represents about 5.1% of the company's float of 16.10M shares. Over the last six months, insiders were net buyers of 6,000 shares, which represents about 0.04% of the company's 16.10M share float.

 

2. Carbonite, Inc. (CARB, Earnings, Analysts, Financials): Provides online backup solutions for consumers and small and medium sized businesses. Earnings per share growth projected at 27.50% over the next 5 years. The company's LongTermDebt/Equity ratio stands at 0.0%, while the TotalDebt/Equity ratio stands at 0.0%. Net institutional purchases in the current quarter at 6.5M shares, which represents about 71.04% of the company's float of 9.15M shares. Over the last six months, insiders were net buyers of 2,066,920 shares, which represents about 22.59% of the company's 9.15M share float.

 

3. 8×8 Inc. (EGHT, Earnings, Analysts, Financials): Develops and markets telecommunications services for Internet protocol (IP), telephony, and video applications, as well as provides Web-based conferencing and unified communications services. Earnings per share growth projected at 26.25% over the next 5 years. The company's LongTermDebt/Equity ratio stands at 0.0%, while the TotalDebt/Equity ratio stands at 0.0%. Net institutional purchases in the current quarter at 2.8M shares, which represents about 5.01% of the company's float of 55.92M shares. Over the last six months, insiders were net buyers of 12,395 shares, which represents about 0.02% of the company's 55.92M share float.

 

4. Aruba Networks, Inc. (ARUN, Earnings, Analysts, Financials): Provides distributed enterprise networks that securely connect local and remote users to corporate information technology resources worldwide. Earnings per share growth projected at 24.66% over the next 5 years. The company's LongTermDebt/Equity ratio stands at 0.0%, while the TotalDebt/Equity ratio stands at 0.0%. Net institutional purchases in the current quarter at 10.2M shares, which represents about 10.16% of the company's float of 100.39M shares. Over the last six months, insiders were net buyers of 444,930 shares, which represents about 0.44% of the company's 100.39M share float.

 

5. Universal Display Corp. (PANL, Earnings, Analysts, Financials): Engages in the research, development, and commercialization of organic light emitting diode (OLED) technologies and materials for use in flat panel display, solid-state lighting, and other product applications. Earnings per share growth projected at 24.50% over the next 5 years. The company's LongTermDebt/Equity ratio stands at 0.0%, while the TotalDebt/Equity ratio stands at 0.0%. Net institutional purchases in the current quarter at 5.3M shares, which represents about 16.94% of the company's float of 31.29M shares. Over the last six months, insiders were net buyers of 406,907 shares, which represents about 1.3% of the company's 31.29M share float.

 

6. Lannett Company, Inc. (LCI, Earnings, Analysts, Financials): Develops, manufactures, packages, markets, and distributes generic pharmaceutical products sold under generic chemical names in the United States. Earnings per share growth projected at 22.50% over the next 5 years. The company's LongTermDebt/Equity ratio stands at 7.0%, while the TotalDebt/Equity ratio stands at 9.0%. Net institutional purchases in the current quarter at 1.0M shares, which represents about 6.84% of the company's float of 14.61M shares. Over the last six months, insiders were net buyers of 29,267 shares, which represents about 0.2% of the company's 14.61M share float.

 

7. American Public Education, Inc. (APEI, Earnings, Analysts, Financials): Provides online higher education focused primarily on serving the military and public service communities. Earnings per share growth projected at 21.89% over the next 5 years. The company's LongTermDebt/Equity ratio stands at 0.0%, while the TotalDebt/Equity ratio stands at 0.0%. Net institutional purchases in the current quarter at 795.3K shares, which represents about 4.74% of the company's float of 16.78M shares. Over the last six months, insiders were net buyers of 283,600 shares, which represents about 1.69% of the company's 16.78M share float.

 

 

(Written by Rebecca Lipman. List compiled by Eben Esterhuizen, CFA)

 

Use Kapitall's Tools: Looking for ways to analyze this list?

Use this article snapshot as a launch pad (click here for help): Simply click on the links, and use Kapitall's tab navigation to browse through the data…

 

Analyze These Ideas: Getting Started

Dig Deeper: Access Company Snapshots, Charts, Filings

ABOUT US

© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member. 

playfor100kwirebanner2png

4 Responses to “Smart Money: Low-Debt Growth Stocks Boosted by Insiders and Big Money Managers”

  1. Al_Bee says:

    The observation that $4.7 Trillion of the debt is owed to ourselves and therefore really reduces the debt only obscures the fact that those dollars have already been paid by our citizens and have already been spent by the federal government. In order to repay that to where it can be spent for its original purpose, it must either be retired by paying it back with a budget surplus (not likely) or rolled over to a new, and therefore public, debt instrument. So, until there are budget surpluses paying down the national debt by retiring, rather than refunding, this debt should be recognized as likely converted to public debt.

  2. James says:

    It is nice to read your article and you give wonderful information. Please give more information on particular topic.

  3. Matthew Cates says:

    This is really an historic moment that the US national debt has eclipsed the entire US Company. The amount of http://www.rushmypapers.net/ money the federal government owes to its creditors including the money owed to itself has hit a great number of amount.

  4. There are some people who always look for cheap prices and compromise over the quality. When they get the services then they come to know these are not according to their expectations. Our essay writing service is best for writing your resumes, essays, term papers or anything assigned by you according to your expectations.

Leave a Reply

Protected by WP Anti Spam

wirebannerscompetepng