Insider Trading Alerts: Marathon Petroleum Corp (MPC) and More

Page 1 of 2

Insider trading activity has been heating up a bit as earnings season winds down. While insiders sell shares for a number of reasons, we like to pay attention to insider purchases because these can be taken to signify an insider’s confidence in the company; if the insider was not particularly optimistic, it would make more sense for them to diversify their wealth. Studies generally show a small outperformance effect for stocks bought by insiders (read our analysis of studies on insider trading) and we think that it can be a good idea to screen these stocks for any interesting names. Read on for our thoughts on five stocks insiders have bought recently.

A Board member at Marathon Petroleum Corp (NYSE:MPC) purchased 6,300 shares of stock through a revocable trust in his name at an average price of $71.37 per share. Marathon Petroleum Corp (NYSE:MPC), which was spun out from Marathon Oil Corporation (NYSE:MRO) as a pure play oil and gas refining and marketing business, experienced a decline in operating income last quarter compared to the second quarter of 2012 on higher costs. Like many other downstream oil and gas companies, Marathon Petroleum Corp (NYSE:MPC) features low earnings multiples- for example, the forward P/E is only 8.

Marathon Petroleum Corp (NYSE:MPC)In addition to insider trading activity, we track quarterly 13F filings from hundreds of hedge funds and other notable investors. We’ve found that the most popular small cap stocks among hedge funds generate an average excess return of 18 percentage points per year (learn more about our small cap strategy) and in fact our own portfolio based on this strategy has beaten the S&P 500 by 33 percentage points in the last 11 months. Our database of hedge fund filings also comes in handy for tracking hedge fund activity in individual stocks over time, and we can see that billionaire Andreas Halvorsen’s Viking Global initiated a position of 2.8 million shares in Marathon during Q1 2013 (see Halvorsen’s stock picks).

A company officer at Education Realty Trust, Inc. (NYSE:EDR), a $1.1 billion market cap real estate investment trust which invests in and manages student housing communities, bought over 10,000 shares in early August. Because real estate investment trusts receive favorable tax treatment conditional on distributing a large share of taxable income to shareholders, they often pay high dividend yields. Education Realty is in fact able to manage an annual yield of 4.8%, and thanks to the consistent demand for student housing over time the stock’s beta is 0.4.

Page 1 of 2
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 States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

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!