Five Stocks Insiders Are Buying Like Crazy

Generally, insiders have an edge over other investors because insiders know more about their companies than do outsiders. That’s why insiders aren’t allowed to trade based on material non-public information. Most insiders don’t break the law, but some insiders push the envelope and trade on information that are in the gray area. Other insiders are great analysts and they know when to trade by using public information, which is perfectly legal. So it may be possible to beat the market by imitating all insiders’ purchases. However, insider trading is generally not a profitable strategy unless several insiders are purchasing around the same time. Academic studies have shown that insider purchases outperform the index fund by more than 7% per year when there are several insiders buying.

For the past months, Insider Monkey, your source for free insider trading data, has been compiling the list of stocks that several insiders are buying like crazy.   Here’s the list of 5 stocks we published last month and how they performed since.

1. TranSwitch Corp (TXCC): TranSwitch went up incredibly since our last report on March 17. TXCC rallied until it climbed to $5.50 on April 11th, making its return for Insider Monkey as high as 106%! Then, it leveled off, but is still up 52%.

Town Sports International Holdings, Inc. (NASDAQ:CLUB)

2. Town Sports Intl (CLUB): Town Sports continued to climb up last month. We initially reported on insider purchases at CLUB in November. The stock gained more than 80% since then. Since our last report in March, the stock also performed well and gained 20.8%. There have been repeated insider purchases in CLUB since November. The stock appreciates as consumer sentiment and spending improves.

3. Ligand Pharma (LGND): Imitating the substantial insider purchases we reported paid off. The stock rose 11% in the week following the latest insider buying and then pulled back. LGND jumped again by 6.25% during the last seven trading days, beating the market averages. Overall, the stock gained more than 10% since March 17th.

4. Exar Corp (EXAR): EXAR underperformed the market by around 3 percentage points since we reported insider purchases on March 17th. However, insider purchases went on last month. EXAR surged 7.8 % during the five days following Soros’ latest purchases on April 1st, before leveling off. It returned as much as 15% for investors who monkeyed George Soros’s large transactions last September. George Soros has been buying this stock, but the stock keeps disappointing investors who imitated Soros’ purchases.

5. Central European Distribution Corp (CEDC): CEDC declined more than 9% since our last report. The latest transactions we reported were above the $12.5 level, and another insider purchased 10,000 shares at $10.53 this month. After the recent insider purchase, the stock seemed to stop its downward trend and stabilize.

Overall, three of our stock picks beat the market. An equal weighted portfolio of these five stocks would have returned 15% in one month.  Only CEDC had negative returns. Of course, this is just a very small sample and does not prove or disprove the credibility of monkeying insider purchases. Insider Monkey, your source for free insider trading data, will keep sharing recent academic studies with you, so that you can do your own research. We will keep providing updates on stocks insiders buy like crazy, although it might be better to follow them in real-time if one is monkeying insider transactions.

Here are the 7 stocks insiders were buying during the last couple of weeks:

Adcare Health Systems (ADK): Insiders are buying modest amounts of ADK during this month. The latest insider transactions were at $4.80 and $4.75 per share. After it rallied in March, the share price has not been moving that much following the insider purchases. The stock closed at $4.91 on Thursday, declining 0.81% in April.

Presidential Life Corp (PLFE): There were several insider purchases since the end of March. Following the insider purchase at $9.37 per share on March 30, PLFE rose 10.25% in a week. The insiders took advantage of pullbacks last week, and kept buying the stock. The latest insider purchase last week was at $10.18. Chuck Royce owns around 1% of PLFE’s outstanding shares. Royce has been investing successfully in small cap stocks for nearly 40 years.

Central European Distribution Corp (CEDC): This was one of the stocks we recommended in our report last month. In addition to a large purchase by William S. Shanahan last month, Eugene Marek Forysiak bought 10,000 shares at $10.53 on April 12th. Since this purchase, the stock stopped its down trend and jumped more than 5%. The stock price is still down 50% compared to its mid-February levels. David Dreman had $29 Million in CEDC at the end of December. Rob Citrone’s Discovery Capital, Phillippe Jabre’s Jabre Capital, and Leon Cooperman’s Omega Advisors had smaller positions in this stock as well.

Nevada Gold & Casinos (UWN): Insiders have been buying since the middle of March when the shares were around $1.09, and the stock started an uppward trend in the beginning of April. However, the insiders kept on buying over the $1.40 level during the past week. This isn’t a very liquid stock though.

Federal Signal Corp (FSS): There were several insider purchases reported since March 21.  The stock rose 11% in a day following two separate insider purchases at $5.66 per share. There were four other insiders buying this stock during the last couple of weeks.  The latest insider transaction was at $6.51 on April 11, and the shares are currently trading around that level. Chuck Royce also owned 1.5% of this stock’s outstanding shares at the end of December.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

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!