In this article, we will take a detailed look at 10 Large-Cap Stocks Insiders Are Buying Recently.
Investors should closely monitor insider trading activity as it can provide valuable insights into a company’s future prospects. Insiders, such as executives and directors, possess intimate knowledge of the company’s operations and strategic direction. When these individuals invest their own capital in company stock, it often signals strong confidence in the company’s future performance.
While not an infallible indicator, significant insider buying activity can suggest that the company may be undervalued or poised for growth. Conversely, while insider selling can have various motivations, it can sometimes signal concerns about the company’s future.
It’s crucial to remember that insider trading activity should be analyzed within the broader context of the company’s fundamentals, industry trends, and overall market conditions. A stock seeing heavy insider buying doesn’t always mean it will go up sharply in the future. Therefore, investors should carefully consider the underlying reasons for insider transactions and conduct thorough due diligence before making investment decisions based on this information alone. By carefully analyzing insider trading activity alongside other relevant factors, investors can gain valuable insights into a company’s prospects and make more informed investment decisions.
To come up with the 10 names, we only considered stocks with a market capitalization of more than $10 billion. We first used Insider Monkey’s insider trading stock screener and looked for stocks with at least two insiders buying over the last six months.
With each stock we note the number of recent insider purchases and the company’s current market capitalization. But why is it important to follow insider activity? Our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds, focusing on insider trading and stock picks from hedge fund investor newsletters and conferences. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A trader at a stock exchange terminal, analyzing the daily data of a large capitalization company.
10. Dow Inc. (NYSE:DOW)
Number of Recent Insider Purchases: 4
Market Cap: $29.099 billion
Dow Inc. is a chemicals company focused on the material science industry, manufacturing and marketing various chemical, plastic and agricultural products. Some investors are bullish on Dow because of its exposure to multiple industries like packaging, consumer goods, construction and agriculture, making it more resilient to volatility in one sector.
The Michigan-based dividend-paying company operates across 150 countries, accessing diverse markets and economies. In the third quarter of 2023 Dow Inc. disclosed an operating cash flow of $800 million, down from $858 million in the same period of 2022. Its third-quarter net sales also declined 24% versus the year-ago period, reflecting declines in all operating segments, which the company attributes to slower global macroeconomic activity. Despite these declines, returns to shareholders reached $617 million for the reporting periods, including $492 million in dividends and $125 million in share repurchases.
Dow Inc. is a reliable dividend player, it has been making regular dividend payments to shareholders since 1912.
Over the last 12 months, the company’s shares dropped 22.47% to $41.92.
9. The Estée Lauder Companies Inc. (NYSE:EL)
Number of Recent Insider Purchases: 11
Market Cap: $29.716 billion
World-wide known beauty products company The Estée Lauder Companies Inc. has been struggling over the recent year due to the troubles in its operation in China. The company known for brands like Estée Lauder, Clinique, MAC, La Mer, and Aveda attributed the drop in Asia sales to China’s economic sales.
In its report for the first quarter of fiscal 2025, the company disclosed net sales of $3.36 billion, a decrease of 4% compared to the prior year. Furthermore, Estée Lauder reported a net loss of $156 million, compared with net earnings of $31 million in the prior year, primarily due to expenses related to talcum litigation settlement agreements. Diluted net loss per common share was $.43, compared with net earnings per common share of $.09 reported in the prior year.
CNBC’s Mad Money host Jim Cramer recently said that this is “one of the worst stocks that I’ve ever seen.” However, Cramer also stressed that it’s been a “terrible” time for the cosmetics sector.
Over the last 12 months, the Estée Lauder Companies’ shares lost 38.34%, hitting a price of $83.56 per share.
8. Centene Corporation (NYSE:CNC)
Number of Recent Insider Purchases: 7
Market Cap: $33.117 billion
Centene Corporation is one of the biggest providers of Medicaid-managed care services in the United States. It also offers products to Medicare members (including Medicare Prescription Drug Plans) and individuals and families served by the Health Insurance Marketplace. This way, the company is servicing more than 1 in 15 individuals across the nation.
In its financial report for the third quarter of 2024, the healthcare company disclosed premium and service revenues of $36.9 billion, compared to $34.97 million in the same period of 2023. Centene Corporations also revealed adjusted diluted earnings per share of $1.62, which compares to adjusted diluted earnings per share of $2.00 in the third quarter of 2023.
Its recent share decline, Oakmark Funds, advised by Harris Associates, attributed to investors’ concern around legislative changes following the recent U.S. presidential election and its potential impact on the company. Oakmark Funds acknowledged Centene’s earning power that can drive continued growth in earnings per share.
Over the last 12 months, Centene Corporation shares declined 11.03% to $65.89 per share.
7. Ferguson Enterprises Inc. (NYSE:FERG)
Number of Recent Insider Purchases: 2
Market Cap: $36.13 billion
Newport News, Virginia-headquartered Ferguson Enterprises is one of the leading distributors of plumbing and heating products in the U.S. It serves both residential and commercial construction markets, operating around 1,800 locations across North America and having approximately 32,000 associates.
For the first quarter of fiscal 2025, Ferguson Enterprises reported net sales of $7.8 billion, an increase of 0.8% from the same period of fiscal 2024. At the same time its earnings per share of $2.45 declined from $2.65 in the same period of the prior year. The company’s CFO, Bill Brundage, said during an earnings call that the company is investing in areas like counter conversions to sell both HVAC and plumbing material to dual-trade experts. He added that Ferguson raised its dividend 5% over the prior year to $0.83 per share, and completed two acquisitions – Fresno Pipe & Supply and Templeton. In the first quarter of fiscal 2025, the company returned $256 million to shareholders via share repurchases, reducing its share count by around 1.3 million.
Over the last 12 months, Ferguson Enterprises shares slid 2.58% to $184.42 per share.
6. Diamondback Energy, Inc. (NASDAQ:FANG)
Number of Recent Insider Purchases: 2
Market Cap: $50.222 billion
Diamondback is an oil and gas exploration and production giant. What sets it apart from other competing companies is its strong presence in the Permian Basin (West Texas), which is considered one of the most prolific oil-producing regions in the world. The company’s low-cost structure in this region allows it to have an advantage and remain afloat in a fluctuating oil price environment.
For the three months ended Sept. 30, 2024, Diamondback reported total revenue of $2.65 billion, compared to $2.34 billion in the same period of 2023. Adjusted free cash flow for the period was $1.0 billion, which compares to $884 million in the same quarter of the prior year.
The company made an important strategic move in Sept. 2024, when it completed its $26 billion merger with Endeavor Energy Resources. The newly combined company was projected to produce more than 816,000 barrels of oil equivalent (BOE) per day. This large-cap stock that insiders have been buying recently is also one of the 12 Hot Oil Stocks to Buy According to Hedge Funds.
Over the last 12 months, Diamondback Energy shares gained 10.81%, reaching $171.60 per share.
5. Norfolk Southern Corporation (NYSE:NSC)
Number of Recent Insider Purchases: 10
Market Cap: $58.768 billion
One of the 10 Best Shipping Stocks To Invest In Now, Norfolk Southern Corporation is a North American transportation service giant mostly focused on railroads. The Atalanta, Georgia-based company runs one of the biggest rail networks in the U.S. spanning around 19,000 miles, and connecting important regions and ports.
The company’s intermodal transportation – moving goods by multiple modes of transport like rail and truck – is often touted as a strong point of its operation, especially with the rise of the e-commerce sector. In this way, Norfolk Southern Corporation also serves various industries, such as automotive, chemicals, consumer goods and agriculture.
In the third quarter of 2024, the transportation company reported revenues of $3.1 billion, up $80 million or 3%, compared to the same reporting period of 2023. Income from railway operations reached $1.6 billion, an increase of $840 million, or 111%, from the comparable quarter of 2023.
Over the last 12 months, Norfolk shares rose 7.65% to $256.66 per share.
4. Simon Property Group, Inc. (NYSE:SPG)
Number of Recent Insider Purchases: 22
Market Cap: $65.8 billion
Simon Property Group is a well-known real estate investment trust (REIT) mostly concentrated on owning and managing popular shopping, entertainment, dining, and mixed-use destinations. Its portfolio include world-famed companies as tenants, such as Apple (NASDAQ:AAPL), Nike (NYSE:NKE), and various other luxury brands.
One of the 12 Best REIT Stocks to Buy Now, Simon Property Group is appraised for the choice of its tenants, which are known for strong foot traffic, especially as the retail sector is recovering from the COVID-19 pandemic. Furthermore, the company has partnered with e-commerce giants like Amazon (NASDAQ:AMZN) and Bonobos, transforming some of its properties into distribution centers.
For the third quarter of 2024, Simon Property Group disclosed a net income attributable to common stockholders of $475.2 million, or $1.46 per diluted share, as compared to $594.1 million or $1.82 per diluted share in 2023. The company declared a quarterly common stock dividend of $2.10 for the fourth quarter of 2024. This is an increase of $0.20, or 10.5% year-over-year.
As of Sept. 30, Simon Property Group owned or held an interest in 196 income-producing properties in the US, comprising 93 malls, 70 premium outlets, 14 mills, six lifestyle centers, and 13 other retail properties in 37 states and Puerto Rico.
Over the last 12 months, Simon Property Group shares gained 25.05%, reaching $177.24 per share.
3. FedEx Corporation (NYSE:FDX)
Number of Recent Insider Purchases: 2
Market Cap: $67.807 billion
FedEx Corporation is a global leader in logistics, express shipping, and e-commerce solutions serving more than 220 countries and territories. It offers professional transportation, e-commerce, and business services to both customers and businesses across the globe. As much as 96.7% of the company’s U.S. revenue comes from customers of two or more transportation services.
FedEx is working on several new strategies, among which is the DRIVE (Delivering, Reliability, Innovation, and Value every day) program. DRIVE is said to be a comprehensive business architecture using data and technology to advance network optimization and cost management. This program is projected to save $4 billion by the end of fiscal 2025 versus the fiscal year 2023 baseline.
For the second quarter ended Nov. 30, 2024, FedEx disclosed revenue of $22 billion, compared to $22.2 billion in the same period of 2023. The company completed $1 billion in share repurchases via open market and accelerated share repurchase transactions during the quarter.
Over the last 12 months, FedEx’s share rose 12.33% to $278.51 per share.
2. ConocoPhillips (NYSE:COP)
Number of Recent Insider Purchases: 2
Market Cap: $132.383 billion
ConocoPhillips is one of the biggest exploration and production companies globally, focused on crude oil, natural gas, and natural gas liquids (NGLs). The company, based in Houston, Texas, operates across North America, Europe, Asia, and Australia. Its operations in the Permian Basin, Eagle Ford, and Alaska are often considered crucial for its praised growth trajectory.
ConocoPhillips is focused on important acquisitions to expand its portfolio. It has recently completed the purchase of Marathon Oil Corporation. For the third quarter of 2024, the company posted earnings of $2.1 billion, or $1.76 per share, compared with third-quarter 2023 earnings of $2.8 billion, or $2.32 per share. One of the 10 Best Commodity Stocks to Invest in According to Hedge Funds also declared a fourth-quarter ordinary dividend of $0.78 per share.
Over the last 12 months, ConocoPhillips shares declined 9.38% to $101.13 per share.
1. The Goldman Sachs Group, Inc. (NYSE:GS)
Number of Recent Insider Purchases: 2
Market Cap: $198.793 billion
The Goldman Sachs Group is one of the leading global investment banks and one of the 8 Unstoppable Dividend Stocks to Invest in. The company is known for having an elite clientele, such as multinational corporations, institutional investors, and sovereign wealth funds. The Goldman Sachs Group relies on a diversified business model, which means that it operates across several different business segments, such as investment banking, consumer banking, trading & markets, and asset management. With a diversified business model, the company is not dependent on one single area, making its position stable as one sector fluctuates.
The Goldman Sachs Group has been making regular dividend payments to shareholders since 1999. In fiscal 2024, the company returned $3.8 billion to shareholders through dividends. On January 15, it declared a quarterly dividend of $3.00 per share, which was in line with its previous dividend. For the fourth quarter of 2024, the company disclosed net revenues of $13.87 billion, compared to $11.32 billion in the same period of 2023.
Over the last 12 months, The Goldman Sachs Group shares gained 66.76%, trading at $634.62 per share.
Overall, GS is first among the 10 large-cap stocks insiders are buying recently. While we acknowledge the potential of stocks with large market capitalization, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
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