Insiders Bought These Stocks Recently

Insider PurchasesStudies show that insider purchases tend to be bullish signs for a stock (read our discussion of studies on insider trading). This is generally accepted to be because insiders would prefer to diversify their investments and only invest in their company’s stock when they are very confident in its future prospects. Because of the signal that these purchases can make, we track insider purchases as well as sales so that investors can review these stocks further and see if any particular one might be a good investment for them as well. Here are five stocks that insiders have been buying recently:

The CEO of Bruker Corporation (NASDAQ:BRKR), Frank Laukien, invested over $1 million of his own money in the company’s stock (read more about the CEO’s purchase and the company). Bruker provides scientific instruments and products, principally to life science customers. It trades at a high price-to-earnings ratio of 27, but is expected to grow its business over the next several years: it trades at 16 times forward earnings estimates, a considerably cheaper multiple. While earnings per share were down for the first half of the year versus 2011, this was partly due to increased research and development spending (which in theory should benefit the company in the future).

AGCO Corporation (NYSE:AGCO) saw an investment of 61,000 shares from Tractors and Farm Equipment Limited, which is run by AGCO Board member Mallika Srinivasan. AGCO grew its earnings by 50% last quarter compared to the same period a year ago (although we suspect that some of the company’s improved business came from milder weather in the U.S. that pushed farm equipment sales earlier in the year). AGCO trades at only six times trailing earnings and so would be a bargain if it can continue performing as it has in the past; the five-year PEG ratio is 0.6, indicating that Wall Street analysts believe that the company has good growth prospects as well. See our earlier discussion of AGCO.

Board member William Greehey bought almost $24 million in stock of NuStar Energy L.P. (NYSE:NS), becoming the latest of several insiders to buy stock in the $3.5 billion market cap pipeline company. NuStar could be a good defensive stock as it pays a high dividend yield (8.9%) and its beta is 0.8. On a value basis it isn’t quite as attractive- analyst consensus is for earnings per share of $2.80 next year, which implies a forward P/E multiple of 18. In our analysis of NuStar from earlier this month, we thought that it made for a good buy compared to its peers (read our analysis of NuStar).

Bill Barrett Corporation (NYSE:BBG) Board member Carin Barth purchased 5,000 shares of the company this month at an average price of $26.59. Bill Barrett is an oil and gas exploration and production company with a strong position in the Denver-Julesburg (D-J) Basin. Falling natural gas prices have hurt the company so far this year, with net income down 18% in the first six months compared to the first half of 2011. Bill Barrett still feels good about its acreage: it invested $460 million in capital expenditures in the same period, which is high compared to a market cap of $1.3 billion. Learn more about Bill Barrett.

James Christmas, a Board member at Halcon Resources Corp (NYSE:HK), also thought that his oil and gas exploration and production company was a buy. Christmas bought 100,000 shares at an average price of $7.24. Halcon, like Bill Barrett, operates in the onshore U.S. although it has most of its proved reserves in Texas (it also recently entered the Utica Shale). Sell-side estimates are for 43 cents in EPS next year, and if the company can achieve that figure (which depends on oil and natural gas prices as well as its production) the forward multiple will end up being 17. In this case we actually thought that despite the insider purchase some of Halcon’s peers made for better buys. See which companies we liked instead.

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 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 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

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

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!