Smoking Out Philip Morris

A Form-4 filed with the SEC has disclosed that Fiat SpA CEO Sergio Marchionne, a board member at Philip Morris International (PM), purchased 1,000 shares of PM stock on May 28 at an average price of $95.08. Marchionne's previous purchase came in April, at prices a bit below $95. Insider purchases are often seen as bullish signals. Of course, investors cannot mimic every insider purchase, so we treat insider purchases like a stock screen, performing follow-up research on any stocks that seem interesting.

In this case, revenue at PM grew by 3% in the first quarter of 2013 vs. a year earlier, but much of this increase was eaten up by excise taxes and cost of goods sold. Pretax income was actually down slightly. The company reported $1.28 earnings per share for the quarter -- a slight increase from the first-quarter 2012 due to a lower share count. In theory, this means that the dividend payment of $0.85 (which makes for an annual yield of 3.7% at current prices) did not tax the business too much. Philip Morris's cash flow from operations fell to $1.4 billion during the quarter, primarily due to the company paying off some of its liabilities. By comparison, that's about how much cash was used on buybacks and dividends, respectively....316 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.