Corporate insiders have material non-public information about their companies. Trading on such information is illegal and some insiders were investigated and caught, but there are still other insiders trading in the grey area. Even when insiders do not act directly on material non-public information, they are still able to benefit from it. They can delay their purchases when they know negative news is going to be released, and vice versa. And even insiders do not have material non-public information, they still have an edge over ordinary investors because they know their companies and their industries way better than ordinary investors. That’s why we have been encouraging investors to focus on the investments of insiders.
Below we compiled a list of industrial goods stocks insiders are bullish about. All companies have at least $10 billion market cap and were purchased by at least one insider during the past three months. The market data is sourced from Finviz.
|HON||Honeywell International Inc.||1|
Boeing Co. (BA): Boeing is an aerospace company. BA was bought by one insider during the past three months. On November 3, Lawrence Kellner bought 1000 shares at $65.0714. Now the stock is trading at $73.17. It has a market cap of $53.8B and a P/E ratio of 14.34. Ken Fisher’s Fisher Asset Management reported to own $300+ million of BA shares at the end of September. Steven Cohen’s SAC Capital Advisors also invested $72 million in BA.
Eaton Corporation (ETN): Eaton Corp is a power management company. ETN was bought by one insider during the past three months. Ned Lautenbach, director at Eaton, purchased 221 shares at $44.67 per share on November 9. Now the stock is trading at $42.98. It has a market cap of $14.6B and a P/E ratio of 11.82. Bain Capital’s Brookside Capital had more than $100 million invested in ETN.
Honeywell International Inc. (HON): Honeywell is a technology and manufacturing company. HON was bought by one insider during the past three months. Kevin Burke purchased 2000 shares at $54.6 on November 15. Now the stock is trading at $53.86. It has a market cap of $42.0B and a P/E ratio of 16.99. Ken Fisher is bullish about HON as well. Fisher Asset Management had $243 million invested in HON at the end of the third quarter.
Northrop Grumman Corporation (NOC): Northrop Grumman designs, integrates and manufactures military aircraft, defense electronics, precision weapons, commercial and military aero-structures. NOC was bought by one insider during the past three months. On November 7, Linda Mills bought 490 shares at $57.38 and another 885 shares at $58.24 per share. Now the stock is trading at $56.61. It has a market cap of $14.8B and a P/E ratio of 9.21. Jean-Marie Eveillard’s First Eagle Investment Management disclosed owning $249 million worth of NOC shares at the end of September.
Dover Corp. (DOV): Dover is a manufacturer of specialized industrial products and equipment. DOV was bought by two insiders during the past three months. On October 26, Stephen Todd bought 1000 shares in total at around $55.73 per share. On the same day, another director at Dover, Richard Lochridge, bought 7150 shares in total at around $55.93 per share. Now the stock is trading at $56.96. It has a market cap of $10.7B and a P/E ratio of 13.04. Ken Fisher’s Fisher Asset Management also invested $347 million in DOV.