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
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 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 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

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!