Insiders Bought Bank of America, TD Ameritrade, and More

Page 1 of 2

Investors cannot mimic every insider purchase, but they can use the knowledge that stocks bought by insiders tend to narrowly outperform the market on average (learn more about studies on insider trading) and think of insider purchases as being much like a stock screen. It’s similarly a bad idea to buy a stock because of a low earnings multiple or high insider ownership- these screens are best used to identify ideas for further research, and insider purchases can yield a list of stock ideas in the same way. Here are five stocks that insiders have been buying recently:

A Bank of America Corp (NYSE:BAC) Board member bought 20,000 shares at an average price of $11.53. The same insider had bought shares at about $9.50 in early November 2012. In the third quarter of 2012, Bank of America was one of the most popular stocks among hedge funds (see the full top ten list). Bank of America stands out among its peers for trading at a considerable discount to book value (the P/B ratio is 0.6) but in terms of earnings (the forward P/E is 9) it’s actually not particularly cheap. As a result, when Insider Monkey last looked at the stock we thought that some other banks made for better investments. Read more about the insider purchase and which large banks we like instead.

THIRD POINT

Health insurer UnitedHealth Group Inc. (NYSE:UNH) also had a member of its Board of Directors buy shares of the stock. UnitedHealth is up 25% from its levels a year ago, but is still a potential value stock with trailing and forward P/Es of 11 and 9 respectively. The company has been experiencing modest growth on both top and bottom lines, but earnings growth does not need to be high at its current pricing for the stock to prove undervalued. Billionaire Dan Loeb’s Third Point owned 2 million shares at the end of September (find Loeb’s favorite stocks). Investors should consider UnitedHealth and other health insurance stocks, as they tend to be cheap and tend to have low betas in case of a bear market.

Read on for our coverage of three more insider purchases, including one at TD Ameritrade:

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 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools 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!