The CAPS Screen: 10 Companies With Insider Ownership
By
John Reeves (TMF Bane)
April 25, 2008
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At The Motley Fool, we like companies with a high level of insider ownership. We believe that leaders with large ownership stakes in their companies will have a greater incentive to do what's best for the business. And the record appears to bear this out, since such companies tend to outperform the market.
With all of this in mind, I used our new CAPS screening tool to look for companies with high insider ownership. Below, you'll find 10 companies with insider ownership of 25% or more. I also added the following parameters:
- Return on equity greater than 20.
- Market cap greater than $150 million.
- A five-star rating, the highest possible, from our CAPS community.
Remember, in the first year for which we have data, five-star companies outperformed, with an average return of nearly 28%. So have a look at the following companies to see whether any of them interest you:
10 Companies With High Insider Ownership
|
Company
|
Share Price
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Sector
|
Market Cap
|
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Alliance
Holdings
|
$24.32
|
Basic Materials
|
$1.4 billion
|
|
Ansoft (Nasdaq: ANST)
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$33.26
|
Technology
|
$776 million
|
|
Heartland Payment Systems (NYSE: HPY)
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$22.03
|
Services
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$820 million
|
|
Marvel Entertainment (NYSE: MVL)
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$29.44
|
Services
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$2.3 billion
|
|
Quality Systems (Nasdaq: QSII)
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$32.22
|
Technology
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$882 million
|
|
RPC
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$13.98
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Basic Materials
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$1.4 billion
|
|
ShengdaTech (Nasdaq: SDTH)
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$8.32
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Basic Materials
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$451 million
|
|
Sun Hydraulics
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$29.84
|
Industrial Goods
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$494 million
|
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TBS International (Nasdaq: TBSI)
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$40.08
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Services
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$1.1 billion
|
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Valmont Industries (NYSE: VMI)
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$99.80
|
Industrial Goods
|
$2.6 billion
|
Data from Motley Fool CAPS and Yahoo! Finance as of April 25.
Remember, this screen is only a starting point in the research process. Come and join us on Motley Fool CAPS to dig into these companies further. Let our 99,000-strong (and counting) CAPS community help you make better stock selections.
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