Differentiated With Ben Silverman | The Investment Podcast for Asset Managers

Differentiated With Ben Silverman is a monthly podcast where veteran investment research analysts dive into insider data and demystify the signals that drive one-of-a-kind investment ideas.

Episode 4 Now Available:
Taking Advantage of New Buyback Data

Ben and Senior Analyst Ali Ragih, CFA, discuss how investors can take advantage of the new buyback data that will become available once the SEC’s new buyback disclosure requirements come into effect. Ben dives into a recent example where one company capitalized on its 10b5-1 plan, sending valuation signals to any investors who were paying attention.

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Previous Episodes

E3. Equity Gifts, Valuation Signals, & the Banking Meltdown 

Ben and Senior Analyst Ali Ragih, CFA, talk about equity gifts by corporate insiders, why they are important transactions, and how to incorporate them into your analysis when screening for investment ideas. Plus, how banking insiders leveraged purchases of their own stock in the wake of the SVB Financial meltdown.

E2. Interesting Insiders & New 10b5-1 Opportunities

Ben is joined by Analyst & 10b5-1 Expert C. Max Magee  to discuss Rule 10b5-1 — what it is, how it provides institutional investors with unique insights, and which of the SEC’s many changes you should pay attention to. Finally, Ben shares recent examples of corporate insider activity to highlight how the SEC may or may not actually curtail certain behaviors.

E1. Records, Buybacks, & the Curious Case of Coupa Software

Ben talks about a truly strange insider trend that happened; discusses how investors can include company stock buybacks in fundamental analysis (with guest Ali Ragih, CFA), and covers the curious case of Coupa Software — where a huge payday for the CEO may have offered insight into an upcoming M&A deal.

Excerpt

Silverman: I think IBM is the poster child for bad buybacks. IBM shareholders ended up seeing their cash used to buy back shares and at prices that kept plummeting and never recovered. So if there’s an example of a company that was bad at executing buybacks —at least the old management was — what’s an example of a company that’s good at executing buybacks?

Ali: When we do look at companies who have a good history of using buybacks historically, one that comes to mind is Medpace (MEDP), a healthcare services company. Their CEO and CFO have a good track record of using buybacks. They typically come in when their stock is pulling back. 2022 offered another good example of that. Not only were they timing it well, but they were very aggressive and retiring a big chunk of their outstanding stock.