18 Services Stocks with Insider Buying

We track corporate insiders because we believe that they have an edge over ordinary investors. Our past studies have shown that insiders on average outperformed the market, especially when it comes to purchasing stocks. Even small purchases are marginally profitable. The reason is simple. Insiders usually have a large exposure to their company’s performance. It does not make sense for them to increase their exposure unless they believe that their purchases are very likely to be profitable. Therefore, we believe that by imitating insiders, investors will be more likely to beat the market in the long term.

Below we compiled a list of US services stocks that insiders are buying. All companies have at least $2 billion market cap and were bought by at least one insider during the past three months. The market data is sourced from Finviz.

Ticker Company Insiders
BBY Best Buy Co. Inc. 1
HTZ Hertz Global Holdings, Inc. 1
SHLD Sears Holdings Corporation 1
AVT Avnet Inc. 1
CKH Seacor Holdings Inc. 1
DIS Walt Disney Co. 1
DLTR Dollar Tree, Inc. 1
EDMC Education Management Corporation 1
JEC Jacobs Engineering Group Inc. 1
MHP The McGraw-Hill Companies, Inc. 1
OCR Omnicare Inc. 1
RCL Royal Caribbean Cruises Ltd. 1
TFM The Fresh Market, Inc. 1
TWC Time Warner Cable Inc. 1
UAL United Continental Holdings, Inc. 1
WPO The Washington Post Company 1
GCI Gannett Co., Inc. 2
CCO Clear Channel Outdoor Holdings Inc. 2

Among these 18 stocks, Best Buy Co Inc (BBY), Hertz Global Holdings Inc (HTZ), Sears Holdings Corporation (SHLD) and Gannett Co Inc (GCI) were purchased by insiders during the past month. For instance, Lisa Caputo bought 402 shares of BBY at $23.66 on January 3. Caputo also purchased 347 shares of BBY at $26.91 at the beginning of December and another 358 shares at $25.4 at the beginning of November. BBY is now trading at $25.23 per share. It has a market cap of $8.9B and a low P/E ratio of only 8.9. Best Buy reported total revenues of $12.1 billion for the 13 weeks ending November 26, 2011, up from $11.9 billion for the same period of 2010. As of September 30, 2011, there are 21 hedge funds with BBY positions. For example, David Einhorn’s Greenlight Capital had $163 million invested in BBY. Bill Miller and Ken Griffin are also bullish about BBY.

GREENLIGHT CAPITAL David Einhorn

Gannett Co Inc (GCI) was also purchased by one insider during the past month. Gannett is an international media company. On January 17, a director at Gannett, Jeffry John Louis, bought 2000 shares at $14.86 per share. Earlier in November, another director Susan Ness also purchased 1000 shares at $11.22 per share. GCI is now trading at $15.22 per share. It has a market cap of $3.7B and a low P/E ratio of 7.27. There are 21 hedge funds reported to own GCI in their 13F portfolios at the end of September last year. John W. Rogers is the most bullish hedge funds manager about GCI. His Ariel Investments had $123 million invested in this position. Warren Buffett’s Berkshire Hathaway and Ray Dalio’s Bridgewater Associates also both had more than $10 million invested in GCI at the end of the third quarter.

One large-cap services stock that insiders are bullish about is Walt Disney Co (DIS). During the past three months, there was one insider who bought Disney shares. John Pepper, director at Disney, bought 1000 shares at $35 per share on November 18 and another 1000 shares at $36 on November 14. Pepper also bought 3000 shares at $31.83 earlier in August last year. DIS is now trading at $39.3 per share. It has a market cap of $71B and a P/E ratio of 15.58. As of September 30, 2011, there are 34 hedge funds disclosed owning DIS in their 13F portfolios. For instance, billionaire Jim Simons’ Renaissance Technologies had $100+ million invested in this position at the end of September.

Other large-cap services stocks insiders love include Dollar Tree Inc (DLTR), The McGraw-Hill Company (MHP), and Time Warner Cable Inc (TWC). Academic research has shown that insider purchases on average outperform the market in the following 12-month period. We encourage investors to focus on the stocks that insiders bought and do some deep research on these stocks.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!