Insiders Have Bought Express Scripts, Simon, and More

Page 1 of 2

We have been spending much of our time in the last month analyzing 13F filings from hedge funds and other notable investors and working on investment strategies using the included information (we have found, for example, that the most popular small cap stocks among hedge funds earn an average excess return of 18 percentage points per year). We have also been keeping an eye on insider trading activity, however. While insider selling is often rational in order to realize the benefits of diversification, insider purchases increase company-specific risk and so in theory should generally occur when an insider is particularly confident in the stock price. Studies in fact show that stocks bought by insiders exhibit a small outperformance effect (learn more about studies on insider trading). Here are five stocks that insiders have bought recently:

A Board member purchased 5,000 shares of Express Scripts Holding Company (NASDAQ:ESRX) at an average price of $59.58 per share. Express Scripts had made our list of the most popular healthcare stocks among hedge funds for the fourth quarter of 2012 (find more healthcare stocks hedge funds loved). Revenue and earnings growth rates are temporarily high as the company regains much of the business it lost during its dispute with Walgreen Company (NYSE:WAG). Wall Street analysts estimate $4.27 in earnings per this year, essentially equal to an annualization of Q4 2012 and implying a current-year P/E of 14. We would be interested in taking a closer look at the company.

Warren Buffett portrait

Simon Property Group, Inc. (NYSE:SPG), a real estate investment trust which is a leader in owning shopping malls and other commercial property, has also been seeing insider buying. Real estate investment trusts must pay out much of their taxable income in order to maintain their tax status, though while Simon’s yield is about 3% this is lower than some of its peers and certainly lower than can be found in other segments of the REIT landscape. Funds from operations have been increasing though we would be a bit concerned as to how dependent the company is on consumer demand.

See three more stocks insiders have been buying, including one Warren Buffett likes:

Page 1 of 2
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 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

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!