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Insiders Load Up on Tiptree

- By Kyle Ferguson

Jonathan Ilany, CEO of Tiptree Inc. (TIPT), purchased 58,419 shares for an average price of $6.63 per share between March 20 and March 24 according to SEC filings.

Ilany now owns a total 58,419 shares of the company following the transactions.

Executive Chairman Michael Barnes purchased 10,913 shares for an average price of $6.48 per share between March 8 and March 13.

Barns owns 3,867,170 total shares of the company following the transactions.

Headquartered in New York, Tiptree is a holding company engaged in the acquisition and management of controlling interests of operating businesses.

The company operates through the following segments: Insurance and Insurance Services, Specialty Finance, Real Estate, Asset Management, Corporate and Other.

The insurance and insurance services segment consists of Fortegra, which offers consumer-related protection products, including credit insurance, non-standard auto insurance, warranties, service contracts, auto warranty and roadside assistance.

The specialty finance segment consists of a controlling ownership interest in Siena, which provides asset-based loans to smaller businesses. The real estate segment consists of care, which acquires and owns senior housing properties.

The asset management segment consists of income from the collateralized loan obligations (CLOs) under management and from its management of Non-Profit Preferred Funding Trust 1, a portfolio of tax-exempt securities owned by third-party investors.

The corporate and other segment incorporates revenues from the investments in CLOs and tax-exempt securities, income from the credit investment portfolio and net gains or losses from the corporate finance activity.

Tiptree has a market cap of $307.72 million, a price-earnings (P/E) ratio of 9.28, an enterprise value of $1.09 billion, a price-book (P/B) ratio of 1.06, a price-sales (P/S) ratio of 0.43 and a dividend yield of 1.47%.

According to GuruFocus, the company has a 4 of 10 financial strength rating with a cash-debt ratio of 0.14 and an equity-asset ratio of 0.10. Its Altman Z-Score of -0.07 indicates it is in financial distress and could potentially file for bankruptcy within the next two years. The company's Beneish M-Score of -2.18 suggests it is a manipulator of its financial statements.

The company has a 7 of 10 profitability and growth rating. It has an operating margin of 4.07%, a net margin of 4.46%, a return on assets (ROA) of 0.93% and a three-year revenue growth rate of 97.50%.

Over the previous year, Tiptree has increased its sales by 30.68% and its market price has gained an estimated 22%.

Over the past five years, the company's revenue has increased an average of 734.81% per year. In the same time, it has increased its capital spending by 4917.24% and its gross margin by 72.60%.

Since Ilany's insider transaction, the company's market price has gained an estimated 3.96%

Since Barnes added to his stake in Tiptree, the company's market price has gained an estimated 6.37%.

Below is a Peter Lynch chart that shows Tiptree is trading below its intrinsic value.

Disclosure: Author does not own any shares of this company.

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This article first appeared on GuruFocus.