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.

Six Stocks Insiders Are Buying

ICAHN CAPITAL LPInsiders may sell shares for any number of reasons, but there is really only one reason insiders buy shares of a company — they believe the stock price will move higher and they want to profit from it. Pullbacks and sell-offs provide a perfect opportunity for investors who have faith in a company to snap up shares. Here are some stocks that have seen insider buying recently.

Cracker Barrel Old Country Store (NASDAQ: CBRL): This retailer and restaurateur had more than 287,000 shares, worth over $14.9 million, purchased by a Sardar Biglari, a so-called beneficial owner, in the last 10 days in January. Cracker Barrel has a amarket cap of $1.2 billion, a dividend yield of 1.9% and a return on equity of 32.9%.

The share price is up more than 26% in the past three months and in the region of the 52-week high. Over that time, the stock has outperformed the Nasdaq and competitors such as Denny’s (NASDAQ: DENN) and DineEquity (NYSE: DIN).

See also: Sardar Biglari Letter to Shareholders of Cracker Barrel Old Country Store.

Dominion Resources (NYSE: D): The CEO, CFO and two directors scooped up more than 17,000 shares, worth more than $881,000, at the end of January. This diversified energy company has a market cap of $28.7 billion and a dividend yield of 4.2%.

The stock has pulled back about 5% in the past month, falling below the 50-day moving average, but not the 200-day moving average. Over the past six months, the stock has underperformed competitors American Electric Power (NYSE: AEP) and NiSource (NYSE: NI), as well as the Dow.

Hess Corp. (NYSE: HES): The chairman of the board recently purchased more than 91,000 shares. That was worth almost $5 million. This New York-based integrated energy company has a market cap of $19.3 million and a P/E ratio this is a little less than the industry average. Its dividend yield is 0.7%.

Shares pulled back slightly in the past week and are down more than 33% from a year ago. The stock has underperformed larger competitors BP (NYSE: BP) and Exxon Mobil (NYSE: XOM), as well as the broader markets, over the past six months.

Icahn Enterprises (NYSE: IEP): Carl Icahn, the chairman of the board, bought up more than 12.9 million shares in January. That was worth more than $475 million. The market cap of his diversified company is $3.2 billion and its dividend yield is 1.0%. The P/E ratio is 6.3 and the company has a return on equity of 15.3%.

Shares have traded mostly between $36 and $39 since November and are below where they were a year ago. Over the past six months, the stock has underperformed the broader markets and Warren Buffett‘s Berkshire Hathaway (NYSE: BRK-A).

Community Bank System (NYSE: CBU): Some 11,000 shares, worth more than $264,000, were purchased last week by seven of this regional bank’s directors. The upstate New York-based bank holding company has a market cap of $1.1 billion and posted record Q4 EPS. Its long-term EPS growth forecast is 9.9% and the dividend yield is 3.7%.

The share price pulled back about 3% recently from a 52-week high. Over the past six months, the stock outperformed competitors M&T Bank (NYSE: MTB) and State Street (NYSE: STT), as well as the broader markets.

See also: Community Bank System Announces Agreement to Acquire 19 Branches and $955 Million in Deposits.

Colfax (NYSE: CFX): One director recently purchased more than 2.1 million shares, worth about $50 million. The same director also bought shares in October. The Maryland-based company makes industrial products and has a market cap of $1.3 billion. The long-term EPS growth forecast is 19.6%. The P/E ratio is hefty but expected to fall.

The share price has pulled back a bit in the past week and is down more than 9% from a recent 52-week high. The stock has outperformed the broader markets and competitor Robbins & Myers (NYSE: RBN) over the past six months.

See also: Insider Sentiment Is Neutral to Bearish in January 2012.

ACTION ITEMS:
Bullish: Investors interested in exchange traded funds focused on insider sentiment might want to consider the following trades:
Guggenheim Insider Sentiment (NYSE: NFO) is about 31% higher than the 52-week low.
• Direxion All Cap Insider Sentiment Shares (NYSE: KNOW) is more than 19% higher than the 52-week low.
• Direxion Large Cap Insider Sentiment Shares (NYSE: INSD) is almost 12% higher than the 52-week low.
Bearish:
Traders may prefer to consider these alternative positions to some of the stocks listed above:
• Papa John’s International (NASDAQ: PZZA) is up about 47% from the 52-week low.
• Marathon Oil (NYSE: MRO) is up about 66% from the 52-week low.
• Danaher (NYSE: DHR) is up more than 34% from the 52-week low.
• Republic Bancorp (NYSE: RBCAA) is up more than 66% from the 52-week low.

Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

Loading Comments...