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
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

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

Bloodiest UFC Fights Ever Fought

Most Expensive Rum Brands in the World

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!