Why This Insider Is Scooping Up Shares Of CCUR Holdings Inc (NASDAQ: CCUR)
A CCUR Holdings Inc (NASDAQ: CCUR) insider has bought $1.0 million worth of stock since the beginning of March. These transactions are notable considering the stock is trading at such a low valuation.
Insider Buying: CCUR
Julian Singer, 10% Owner, has bought 186,024 shares of CCUR worth a total of $1.0 million since March 1st.
What's more interesting in fact, Mr. Singer has bought $5.8 million worth of stock since the beginning of October 2017 according to recent SEC filings. That's roughly 10.9% of the company's total market capitalization.
| Insider Trading | Relationship | Date | #Shares | Value ($) |
|---|---|---|---|---|
| Julian Singer | 10% Owner | Mar 26 | 46,839 | $238,009 |
| Julian Singer | 10% Owner | Mar 23 | 1,195 | $6,417 |
| Julian Singer | 10% Owner | Mar 22 | 3,239 | $17,488 |
| Julian Singer | 10% Owner | Mar 21 | 685 | $3,698 |
| Julian Singer | 10% Owner | Mar 13 | 20,532 | $112,428 |
| Julian Singer | 10% Owner | Mar 12 | 12,007 | $66,518 |
| Julian Singer | 10% Owner | Mar 09 | 39,411 | $220,288 |
| Julian Singer | 10% Owner | Mar 07 | 11,020 | $61,942 |
| Julian Singer | 10% Owner | Mar 06 | 17,917 | $100,455 |
| Julian Singer | 10% Owner | Mar 05 | 13,179 | $73,796 |
| Julian Singer | 10% Owner | Mar 02 | 18,500 | $98,975 |
| Julian Singer | 10% Owner | Mar 01 | 1,500 | $8,025 |
| TOTAL | 186,024 | $1,008,039 |
CCUR's Stock Price and Valuation
The company's shares last traded at $4.75 as of Tuesday, approximately 68.3% of its 52-week high and down -20.7% over the last six months. While the stock is near its low, could the recent insider transactions signal a promising road ahead for shareholders?
Finbox.io applies pre-built valuation models to calculate a fair value for a given stock and uses consensus Wall Street estimates for the forecast when available. The company's average fair value of $7.85 implies 65.5% upside and is calculated from 6 separate analyses as shown in the table above.
| Analysis | Model Fair Value | Upside (Downside) |
|---|---|---|
| 10-yr DCF Revenue Exit | $9.40 | 98.1% |
| 10-yr DCF EBITDA Exit | $7.56 | 59.3% |
| 5-yr DCF EBITDA Exit | $8.04 | 69.5% |
| 10-yr DCF Growth Exit | $6.69 | 41.0% |
| 5-yr DCF Growth Exit | $6.65 | 40.0% |
| Earnings Power Value | $8.78 | 85.1% |
| Average | $7.85 | 65.5% |
While insider activity on its own is not necessarily a buy or sell signal, it may offer insight into how ownership and management feel about a company's future prospects. Keeping an eye on the activities of insiders and institutions can help investors make more informed investment decisions.
I recommend you continue to research CCUR to get a more comprehensive view of the company by looking at:
Risk Metrics: how is CCUR's financial health? Find out by viewing our financial leverage data metric which plots the dollars in total assets for each dollar of common equity over time.
Efficiency Metrics: is management becoming more or less efficient in creating value for the firm? Find out by analyzing the company's return on invested capital ratio here.
Valuation Metrics: how much upside do shares of CCUR have based on the Ben Graham Formula? Take a look at our Ben Graham Formula data explorer which also compares the company's upside to its peers.
Author: Andy Pai
Expertise: financial modeling, mergers & acquisitions
Andy is also a founder at finbox.io, where he's focused on building tools that make it faster and easier for investors to do investment research. Andy's background is in investment banking where he led the analysis on over 50 board advisory engagements involving mergers and acquisitions, fairness opinions and solvency opinions. Some of his board advisory highlights:
- Sears Holdings Corp.'s $620 mm spin-off via rights offering of Sears Outlet, Hometown Stores and Sears Hardware Stores.
- Cerberus Capital Management's $3.3 bn acquisition of SUPERVALU Inc.'s New Albertsons, Inc. assets.
Andy can be reached at andy@finbox.io.
As of this writing, I did not hold a position in any of the aforementioned securities and this is not a buy or sell recommendation on any security mentioned.