There are times when trading by insiders may be significant and investors would be smart to take note of it. A recent trade in Pan Jamaican Investment Trust shares by a director seems to be worthy of note.
The company this week informed the Jamaica Stock Exchange that a Director sold 2,508,590 of the company’s shares on September 30.
The sale comes against the back ground that Pan Jamaican reported net profit attributable to owners for the quarter ended June of $867 million, compared to $853 million in the similar quarter of 2015, a mere increase of 2 percent, equivalent to basic earnings per share of 83 cents. Net profit attributable to owners for the six months ended June 30, amounted to $1,589 million, compared to $1,395 million for 2015, an increase of 14 percent, equivalent to earnings per stock unit of $1.50 compared to $1.33 for the same period in 2015.
The year to date net profit, includes the impact of a gain of $185 million realized on the sale of the group’s interest in Hardware & Lumber during the first quarter of 2016.
Pan Jam director sells 2.5m shares
Stock split revs Pan Jam’ stock not profit
Pan-Jamaican Investment Trust (Pan Jam) recently announced a proposed 5 for 1 stock split which sent the stock flying to $125 from below $90. The company also announced a second dividend for the year with the stock trading ex-dividend on May 27. The dividend is for 75 cents per share, payable on June 22, to shareholders on record as at May 31.
The latest payment makes the second dividend of the same amount in March this year. In June 2015, the company paid a dividend of seventy cents per shares.
Pan Jam also advised that on May 13, four members of the management team were issued stock grants under the Long Term Incentive Plan totaling 242,691 shares.
The group reported net profit attributable to owners for the quarter ended March of $721 million, up from $542 million in the 2015 first quarter, an increase of 33 percent. Earnings per stock unit amounted to $3.44 compared to $2.59 for the same period in 2015. Earnings from ongoing operations seem headed for $15 per share for this year.
Performance for the quarter reflect a gain of $185 million arising from the divestment of shares in Hardware and Lumber and an increase of $149 million in the share of associated company and joint venture companies’ results. These more than compensated for decreases of $43 million and $84 million in property and other income respectively.
Property income was reduced by lower rental income as a result of a reduction in average occupancy from 85 percent in March 2015 to 81 percent in the current year as well as reduced booking of property revaluation gains. In the first quarter of 2015, other income increased by a one-off lease buyout amounting to $87 million. Operating expenses increased principally as a result of pension costs related to the reorganisation of the group’s pension arrangements as well as amortization of new property management software. Operating expenses rose to $288.59 million from $259.57 million while Finance costs rose sharply to $130 million from $94 million.
Total assets amounted to $28.3 billion at the end of March while stockholders’ equity increased to $22.4 billion, equating to a book value per stock unit of $106.86.
Since Pan Jam announced the stock split, the stock rose to $125 on the Jamaica Stock Exchange, up from $88 at the beginning of May.
