Insiders Have Been Buying These Stocks

Page 1 of 2

Studies show that statistically stocks bought by insiders tend to outperform the market (read about studies on insider trading) though overall the effect is not very large and obviously does not occur in all cases. In addition, investors cannot buy even a significant percentage of stocks bought by insiders and hold them for a reasonable period of time. As a result we track insider purchases, but then take at least a brief look at the company involved to see if it seems like a good value stock. Here are five stocks that insiders bought recently:

Multiple insiders have been buying insurance company Markel Corporation (NYSE:MKL). We particularly like to see consensus insider purchases, since on average they are particularly bullish signs (learn more about consensus insider buying). Markel, which is planning to merge with Alterra Capital Holdings Ltd (NASDAQ:ALTE), trades at a small premium to book value with a P/B ratio of 1.1. Its trailing earnings multiple of 18 also looks potentially expensive, especially as the company’s financial performance has not been particularly good. In addition, we’d be cautious of investing a company engaging in M&A as these activities tend to reduce shareholder value. See more of our analysis of Markel.

A Board member reported purchasing 3,000 shares of NuStar Energy L.P. (NYSE:NS) at an average price of $42.48 per share. A number of insiders were buying the stock in November 2012 as well (research insider purchases at NuStar). NuStar is a $3.6 billion market cap oil and gas transportation and storage company (primarily using pipelines). It doesn’t look too attractive in terms of a value investment at 21 times forward earnings estimates but the dividend yield is very high (over 9%) and the company has a good record of at least keeping its payments steady if not increasing them over time.

Chuck Royce

Apparel and accessories company G-III Apparel Group, Ltd. (NASDAQ:GIII) had its Director of Business Development buy 3,000 shares on January 2nd at an average price of $33.82 per share. The trailing P/E multiple is 13, and Wall Street analysis are bullish on G-III’s prospects: the five-year PEG ratio is only 0.6. Earnings were up 11% in the company’s most recent fiscal quarter compared to the same period in the previous fiscal year, and while that’s lower than analyst targets it would easily justify the current valuation if that growth rate continued. However, 15% of the outstanding shares are held short and so some market players are apparently bearish. Chuck Royce’s Royce & Associates was buying the stock during the third quarter. We think that a growing company at G-III’s earnings multiples is well worth checking out.

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!