Insiders Have Bought Chesapeake Energy Corporation (CHK), Dollar Tree, Inc. (DLTR), and More

Page 1 of 2

Our analysis of studies on insider trading has led us to conclude that stocks bought by insiders slightly outperform the market. Our explanation for this finding is that in order for insiders to buy their company’s stock- and, therefore, increase their own company-specific risk- they should be more confident than usual that the stock will do well. Otherwise, they would simply diversify their wealth in line with economic theory. We like to review recent insider purchases and take a brief look at each company so that investors can perform research on any interesting stocks- similar to how many people use stock screens in their decision making process. Here are five stocks which insiders have bought recently:

A member of Chesapeake Energy Corporation (NYSE:CHK)’s Board of Directors bought over 150,000 shares of stock on June 21st. The natural gas producer is valued at 10 times forward earnings estimates, although currently the company is struggling and has only low profitability due to poor conditions in the natural gas market. It might be best to hold off for now given how dependent the company is on nat gas prices. Our database shows another insider buying Chesapeake Energy Corporation (NYSE:CHK) earlier in the month; our evaluation of studies on insider trading shows that consensus insider purchases are particularly likely- though not certain- to beat the market (read more about consensus insider purchases).

LONE PINE CAPITAL

A trust related to an insider at Dollar Tree, Inc. (NASDAQ:DLTR) bought 8,000 shares in late June at an average price of $49.76 per share. Dollar Tree, Inc. (NASDAQ:DLTR) is currently valued at 18 times its trailing earnings, and delivered a 15% increase in earnings in its most recent quarter compared to the same period in the previous fiscal year. Other dollar stores have not been performing as well, however, potentially signaling trouble for the industry. In addition to insider trading activity, we maintain a database of hedge fund positions culled from quarterly 13F filings. We use these filings to help us research investment strategies (for example, we have found that the most popular small cap stocks among hedge funds earn an average excess return of 18 percentage points per year) and they can also be used to track interest in individual stocks. We can see that billionaire Stephen Mandel’s Lone Pine Capital owned over 12 million shares at the end of March (see Mandel’s stock picks).

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

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

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

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!