Multiple Insiders Have Bought Finance and Insurance Companies Including Citigroup

Page 1 of 2

Insider purchases tend to be bullish signals (read more about insider trading) and consensus insider purchases- when multiple insiders buy the stock within a fairly short time frame- are particularly interesting events. Learn more about consensus insider buying. We believe that these stocks tend to perform well following insider purchases because the transactions themselves signify confidence in the company- otherwise, the insiders would prefer to diversify their wealth away from being concentrated in one single business as per economic theory. In any case, we track consensus insider purchases and take a brief look at the companies involved so that investors can review them quickly and decide whether or not to research them further. Here are five finance and insurance stocks that multiple insiders have bought in the last three months:

David Tepper

We have recorded multiple insiders buying shares in Citigroup Inc. (NYSE:C) within the last three months. Even though its stock price has risen 33% in the last year, the megabank still trades at a significant discount to the book value of its equity with a P/B ratio of 0.7. Citigroup was one of the most popular stocks among hedge funds in the third quarter of 2012, joining other large banks on our top ten list (see more stocks hedge funds loved). Billionaire David Tepper’s Appaloosa Management was one of the funds reporting a large position in the company (check out Tepper’s stock picks). In the fourth quarter of 2012, Citi reported a 25% increase in earnings compared to the same period in 2011.

Another bank- though a considerably smaller one- which insiders have been buying is TCF Financial Corporation (NYSE:TCB). TCF, as the holding company for TCF National Bank, is based in the Midwestern U.S. (almost half of its retail branches are in Illinois). Unlike Citigroup, TCF is valued at a premium to the book value of its equity- the P/B ratio is 1.3. The company is unprofitable on a trailing basis due to a bad quarter in the first three months of 2012, but Wall Street analysts believe that TCF is performing more strongly now. Their expectations for 2013 imply a current-year P/E multiple of 14.

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 Biggest Airports in the World

The 5 Most Gang Infested Cities In America

The 34 Smartest Countries in the World

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

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!