Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

5 Stocks Insiders Are Buying Like Crazy

Page 1 of 2

We like to track insider purchasing activity because studies show that stocks bought by insiders tend to beat the market (read more about studies on insider trading), and this makes sense as insiders should prefer diversification to buying more of their company’s stock unless they are quite confident that the stock is going to rise. While it’s certainly good to see one insider purchase, we’re particularly interested in consensus insider purchases. Stocks bought by multiple insiders are somewhat more reliable market-beaters (though not a sure thing), so they are particularly worth our attention. See more about the average performance of stocks bought by multiple insiders. Here are five stocks that at least one insider has bought in the last month, and at least three insiders have bought in the last three months:

SAC CAPITAL ADVISORS

Five different insiders have bought shares of Visteon Corporation (NYSE:VC), which is a $2.9 billion market cap auto parts manufacturer which primarily provides climate and electrical components to the car companies. Poor conditions in the auto market drove revenue and earnings down sharply in the third quarter of 2012 compared to the same period in 2011, but analysts think that the company will bounce back and so the forward P/E is a somewhat reasonable 15. Billionaire Steve Cohen’s SAC Capital Advisors increased its holdings of Visteon in the third quarter of 2012 to a total of 2.6 million shares (check out Cohen’s stock picks).

There has been consensus insider buying at Weatherford International Ltd (NYSE:WFT), a provider of equipment and services for oil and gas companies. Revenue has been up, but lower margins caused net income to be 42% lower in the third quarter than in Q3 2011; the stock price has declined 27% in the last year as the markets have watched this unfold. The sell-side sees a recovery here as well, with a forward P/E of 11 and a five-year PEG ratio of only 0.5. Third Point, managed by billionaire Dan Loeb, owned 4 million shares at the end of September and this was essentially unchanged from three months earlier (find Loeb’s favorite stocks).

Petroleum products storage and transportation company NuStar Energy L.P. (NYSE:NS) is another target of purchases by multiple company insiders. Historically the stock has paid a high dividend yield, so it may be of interest to income investors, though they should make sure to do their due diligence as the stock price has declined 20% in the last year. The company does have a good record of increasing or maintaining its dividend payments, but in terms of its valuation the stock trades at 22 times consensus earnings for 2013.

See another high yield stock insiders love:

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...
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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!