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.

Insiders Have Bought Alcoa Inc (AA), Mosaic Co (MOS), and More

Page 1 of 2

While insider sales can occur because individuals expect the stock to do poorly, economic theory suggests through the principles of diversification that it is often rational for insiders to sell even if their feelings on the company’s prospects are neutral. Insider purchases, however, tend to be associated with slightly higher returns (read our analysis of studies on insider trading) and we think that this is because taking on more company-specific risk requires insiders to be more confident than usual. While it’s impossible to imitate every insider purchase, we think it can be a good idea to treat them similarly to the results of a stock screen: use them to produce a list of initial ideas which can then be researched further if they look like good values. Here are four stocks which insiders have bought this month:

Two Board members at Alcoa Inc (NYSE:AA) each bought about 2,500 shares of stock at $8.20 per share. Consensus insider purchases have been shown to have a stronger effect than single purchases (learn more about consensus insider buying), though these particular insiders have been frequent buyers in the past couple years as the stock has slumped. The aluminum producer beat earnings expectations in its report for the first quarter of 2013, with net income rising strongly in percentage terms versus a year earlier. However, we still place the stock price at 18 times annualized Q1 earnings. When we looked at Alcoa Inc (NYSE:AA) compared to its peers, we thought that it and Kaiser Aluminum Corp. (NASDAQ:KALU) looked like better picks than the rest of the industry though of course these two companies are tied to aluminum prices and so bear a certain amount of risk there.


A member of Mosaic Co (NYSE:MOS)’s Board of Directors purchased 2,000 shares on April 3rd at an average price of $58.22 per share. The $25 billion market cap company, which is a provider of fertilizer and other agricultural products, showed only small increases in revenue and operating income in its third fiscal quarter (which ended in February) compared to the same period in the previous fiscal year (net income was up on items such as foreign currency transactions). The trailing P/E is 13, which is line with the value levels for many stocks which are tied to agriculture even as some investors suggest that agriculture could be a major growth industry in the coming years due to increases in world population and meat demand. Billionaire Steve Cohen’s SAC Capital Advisors disclosed a position of 2.2 million shares in Mosaic Co (NYSE:MOS) as of the end of December (see Cohen’s stock picks).

Page 1 of 2

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!