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
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!