Janus Capital Strikes Deal With Dai-Ichi Amid Heavy Insider Trading
Janus Capital Group Inc. (NYSE:JNS), which has been working to reverse 12 quarters of investor redemptions, recently received support from the second-largest life insurance provider in Japan, sending the company's stocks higher.
This came as a number of company executives performed insider transactions, suggesting they may know something about the deal public investors don't.
According to Bloomberg, Dai-ichi Insurance Co. said it will buy as much as 20 percent stake in Janus, and that it plans to invest $2 billion into the company to help it grow in Japan. Following the announcement, the company's stock rose 10 percent to $8.46, the biggest gain since July 2010.
"We think this is an undervalued asset and it may be a chance to get in at a good time," said Macrae Sykes, a Rye analyst. Sykes currently has a buy recommendation on the stock, and says the company will likely use the new funds to create new products.
Michael Kim, an analyst with Sandler O’Neill & Partners LP in New York, said the deal does not change the fundamental core business, and that Janus is still "dealing with sizeable redemptions and performance is an issue."
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