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.

Insider Trading: Hewlett Packard, Yahoo $HPQ $YHOO $CVI $FTR

Insiders may sell shares for any number of reasons, but there is really only one reason insiders buy shares of a company — they believe the stock price will move higher and they want to profit from it.

Pullbacks and sell-offs provide a perfect opportunity for investors who have faith in a company to snap up shares. Here are some stocks that have seen insider buying recently.

CVR Energy (NYSE: CVI): Activist investor Carl Icahn recently purchased more than 1.6 million shares, worth over $45 million. This Sugar Land, Tex.-based fuel refiner became a subsidiary of Icahn Enterprises (NASDAQ: IEP) in May and is in the process of being sold.

It has a market cap of $2.1 billion. Though the share price is down more than 8% in the past week, year to date it is more than 29% higher. Despite the recent drop in the share price, the stock has outperformed competitors such as HollyFrontier (NYSE: HFC), as well as the broader markets, over the past six months.

See also: CVR Energy Provides Update on Sale Process

Ferrellgas Partners (NYSE: FGP): Last week, the chief executive purchased more than 31,000 shares, worth more than $360,000. This was his fourth, and largest, purchase of shares this year. This propane distributor recently announced its 71st consecutive $0.50 quarterly distribution.

The Overland Park, Kan.-based company has a dividend yield of 11.9%. Shares fell about 7% in the past month and are down more than 11% year to date. The stock has underperformed the likes of AmeriGas Partners (NYSE: APU) and Suburban Propane (NYSE: SPH) over the past six months.

Frontier Communications (NASDAQ: FTR): Some 50,000 shares, worth more than $177,000, were purchased last week by a director. The CEO, COO and others bought more than 150,000 shares in May. This telecom has a market cap of $3.5 billion. Short interest is about 23% of the float.

Despite a slight rise in the past week, the share price has been falling for the past year and is now nearly 30% lower year to date. The stock has underperformed competitors such as AT&T (NYSE: T) and CenturyLink (NYSE: CTL), as well as the broader markets, over the past six months.

See also: Five Risky Dividend Stocks

Hewlett-Packard Company (NYSE:HPQ)

Hewlett-Packard (NYSE: HPQ): A director for this Palo Alto, Calif.-based computer hardware maker bought up more than 13.1 million shares in the past two weeks. That was worth more than $295 million. The market cap of this S&P 500 component is $41.6 billion.

An analyst downgrade on Friday sent shares lower by about 6%. The share price is now more than 17% lower than at the beginning of the year. Over the past six months, the stock’s performance has been in line with that of rival Dell (NASDAQ: DELL) but it has underperformed International Business Machines (NYSE: IBM).

See also: Hewlett-Packard Brings in New Head of Software

Opko Health (NYSE: OPK): The chairman continues to periodically buy batches of shares, as he has done since last November. He bought 170,000 shares, worth more than $805,000, in the past week. This Miami-based health care company has a market cap of $1.3 billion. Short interest is 23.7% of the float.

Shares have traded mostly between $4.50 and $5.50 since October, and the share price is more than 7% lower that at the beginning of the year. Over the past six months, the stock has underperformed competitors such as Allergan (NYSE: AGN) and the broader markets.

See also: Blueberries, Gold Bond, Ovaltine and Obesity: The Makings for a Very Good Story

Yahoo! (YHOO): Three directors purchased more than 1.7 million shares of this Sunnyvale, Calif.-tech giant at the end of May. That was worth more than $26.4 million. Yahoo! recently ousted its CEO, and it has just released a Web browser.

This S&P 500 component has a market cap of $18.3 billion and its long-term EPS growth forecast is 14.4%. Shares have traded mostly between $14.50 and $16.50 since October. The stock’s performance has been largely in line with Google’s (NASDAQ: GOOG) over the past six months, but it has underperformed AOL (NYSE: AOL).

See also: Is the Yahoo! and Facebook Battle About to End?


Bullish: Investors interested in exchange traded funds focused on insider sentiment might want to consider the following trades:

  • Guggenheim Insider Sentiment (NYSE: NFO) is about 2% lower year to date.
  • Direxion All Cap Insider Sentiment Shares (NYSE: KNOW) is about 6% lower year to date.


Traders may prefer to consider these alternative positions to some of the stocks listed above:

  • AOL (NYSE: AOL) is up more than 81% year to date.
  • Cynosure (NASDAQ: CYNO) is up more than 62% year to date.
  • Equinix (NASDAQ: EQIX) is up more than 55% year to date.
  • Western Refining (NYSE: WNR) is up more than 36% year to date

Note: This article is written by Nelson Hem and published at Benzinga.

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...

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!