Wiley, SolarCity, and More Stocks With Recent Insider Purchases

Page 1 of 2

We track both insider purchases and insider sales in our insider trading database, but we pay particular attention when we catch insiders buying. This is because the principles of diversification mean that it is rational for insiders to sell even if they aren’t particularly negative on the company (of course, if they are negative, that just makes it more sensible to sell). It seems to us that for an insider to buy additional shares, on the other hand, has to signify at least some confidence that the stock will rise in order to offset the benefits of diversification. Studies show that stocks bought by insiders do beat the market on average (read more about studies on insider trading). Here are five stocks that insiders have bought recently:

A Board member at John Wiley & Sons Inc (NYSE:JW.A) bought 12,000 shares of stock at an average price of $37.15 per share. The publishing business isn’t doing well right now- Wiley, in fact, had its revenue and earnings decline in its most recent quarter compared to the same period in the previous fiscal year- but the stock is somewhat low priced at 12 times trailing earnings. It’s possible that it would be a good value if the company’s operations improved, but we didn’t find it that attractive. See more of our thoughts on Wiley.

SAC CAPITAL ADVISORS

Harry Wilson, a Board member at Visteon Corporation (NYSE:VC), joined another insider in buying the company’s stock in the month of December. Consensus insider purchases are particularly bullish signs. Visteon is a $2.7 billion market cap auto parts company providing climate and electronics components among others. As an auto related company its stock is sensitive to the broader market (beta of 2.4) and business has been down recently (revenue and earnings declined at double-digit rates in the third quarter compared to the same period in 2011). Wall Street analysts think the company will recover and it trades at 14 times consensus earnings for next year, but we think there are probably better auto investments. SAC Capital Advisors, managed by billionaire Steve Cohen, bought shares last quarter (find more of Cohen’s stock picks).

Two Board members at recent IPO SolarCity Corp (NASDAQ:SCTY), including billionaire Elon Musk, bought significant amounts of stock at the IPO price of $8 per share. SolarCity had planned a higher IPO price, in the $13-15 range, but poor sentiment towards solar (the company installs and leases solar panels to residential, business, and government customers) forced the company to lower its price. The stock currently trades at about $10.50. While SolarCity’s revenue is growing quite rapidly, it remains unprofitable and so we wouldn’t recommend it at this point.

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
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 Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!