J. Alexander’s Holdings director Frank Martire has in the past week spent almost $215,000 to build his stake in the restaurant company. Martire was named to the board of West End-based J. Alexander’s in September, just before the company returned to the New York Stock Exchange. He is the executive chairman of Fortune 500 company Fidelity National Information Services and was that company’s CEO from 2009 to early this year.
Martire's recent purchases have more than doubled his stake in J. Alexander’s (Ticker: JAX), which has climbed about 10 percent since being spun out of Fidelity National Financial nearly two months ago.
Four of the top executives at Community Health Systems last week followed Chairman and CEO Wayne Smith's lead in spending thousands of dollars to exercise stock options in the wake of a profit warning that put a hurting on the company's stock. Combined, the quartet spent more than $600,000 to add to their holdings.
• CFO Larry Cash spent $181,800 on 10,000 options.
• Executive Vice President and Secretary Rachel Seifert spent almost $91,000 to exercise 5,000 options that would have expired in 2019.
Shares of CHS (Ticker: CYH) have done little since plummeting following Smith & Co.'s warning. They closed Friday trading at $28.04 and are off nearly 50 percent year to date.
Uzi Yemin, the chairman and CEO of Delek Logistics Partners, late last week shelled out more than $500,000 to boost his stake in the Brentwood-based owner of oil refining and pipelines. The purchases, made under a new stock trading plan, grew Yemin's stake in Delek Logistics about 7 percent to almost 231,000 limited partner units. Those securities (Ticker: DKL) closed at $31.54 Tuesday and are down about 11 percent so far this year.
Community Health Systems Chairman and CEO Wayne Smith is looking to send investors a message. Days after his team warned that third-quarter profits would be well below analysts' expectations — and the market lopped more than $1.5 billion off the company's market cap — Smith (pictured) on Monday spent more than $900,000 to exercise a batch of stock options that would have expired in 2019 and then held on to the resulting shares. The move took the 69-year-old's total direct and indirect holdings of Franklin-based CHS (Ticker: CYH) to nearly 1.8 million shares.
Smith's big option exercise came after his largest investor, hedge fund Glenview Capital, on Friday said it had trimmed its CHS stake by about 2 percent — for proceeds of nearly $8 million — the day before, when CHS plummeted by more than 30 percent. An interesting side note to that filing: Glenview on Thursday spent nearly $15 million to add to its holdings in Tenet Healthcare as that company, too, gave up a lot of ground.
It appears Dollar General CEO Todd Vasos looked at the stock purchases made early this month by two of the retailer's directors and thought they were a good idea. Last Thursday, Vasos spent more than $300,000 to add 4,300 shares to his holdings, which are now worth $4.2 million. Dollar General (Ticker: DG) closed Monday at about $69 and have slid from more than $80 in the past month.
Corrections Corp. of America board member Thurgood Marshall Jr. last Friday unloaded more than 23,000 shares of the Nashville-based prison management company. The sales grossed Marshall, who has been a CCA director since 2002, more than $684,000 and slashed his stake in the company by more than half. Shares of CCA (Ticker: CXW) are down almost 20 percent so far this year.
Dollar General's board members appear to be a bunch of true believers. A couple of days after AutoZone CEO Bill Rhodes spent about $370,000 to pad his stake in Dollar General following the stock's slip in the wake of the company's Q2 earnings, fellow director Michael Calbert followed suit — and then some. Calbert, a former KKR executive who joined Dollar General's board when the investment firm bought the company (Ticker: DG) in 2007, early this week spent more than $2.7 million to more than triple his stake in Goodlettsville-based Dollar General. Check out his filing here.
Just about all of our reports on noteworthy stock trades by local public-company insiders have them booking juicy profits. But every once in a while, we get to draw attention to an investment that signals a big vote of confidence. So it is here with Bill Rhodes, the CEO of AutoZone and a director of Dollar General: A trust set up by Rhodes, who has been on the Dollar General board since 2009, last week spent $370,000 to buy 5,000 shares of the discount retailer, growing his total (direct and indirect) holdings to more than 27,000 shares. The move came after Dollar General (Ticker: DG) slipped from above $80 to the mid-$70s amid broader market trumoil and in the wake of its Q2 profit report.
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