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.

5 Stocks Insiders Are Buying Like Crazy Recently

Insiders ALWAYS trade on inside information. Most of the time, the transactions are either borderline legal or illegal and un-prosecutable. From time to time, some really dumb insiders trade right before major announcements and get caught. But those cases are rare. Most of the insider transactions happen well in advance of any material developments, meaning they won’t be taken to court for their profits. Recent academic studies have shown that imitating insider transactions generally yield 5-10% higher returns than the market.  Let me say that again. Instead of investing in index funds such as Vanguard or SPY, you can make 5% more on the average if you imitate insiders’ transactions. These results are not unique to US markets either. In several European markets insiders magically manage to beat the market indices. This isn’t just a coincidence, data mining, or statistical fluke. I will discuss the merits of investing by using insider transactions some other time.

Now, I will focus on recent mega insider purchases. In the 5 stocks insiders bought like crazy in August and September, large shareholders bought tens of millions of dollars worth of shares. In some cases, a group of insiders bought all those shares. I am not hand picking only the companies with good results. These are the results for all the companies with a total of $50 million or more in insider purchases.  Most of these transactions have been very profitable for the insiders. Here are the companies with gigantic insider purchases:

5.  Trius Therapeutics, Inc. (TSRX): Total insider Purchases of $54.4 million

This is the only company in our list that underperformed the market. You can read the details of insider purchases in Trius Therapeutics at Insider Monkey.


4. VMWare Inc. (VMW): Total Insider Purchases of $54.8

There were several insiders selling their shares or exercising their options in VMW. Only one insider is responsible for all of the purchases in this company. See the details of these transactions and how this insider made 60% from the first purchase in VMWare Inc. at Insider Monkey.

3. Molycorp Inc. (MCP): Total Insider Purchases of $56.3 million

Several insiders bought around 4 million shares of this mining company at its IPO at $14 per share. However, the IPO was a disappointment and prices dipped below $13 a share just days after the IPO. See the details of these transactions and stock returns since the IPO at Insider Monkey.


2. Everest Re Group Ltd. (RE): Total Insider Purchases of $64.7 million

When the stock prices start to go down in mid August, the insider in this insurance company stepped in to buy company shares at around $80 per share. They kept buying shares until the stock price crossed a magic level. See at what price insiders stopped buying and how much they made in just one month at Insider Monkey.

1. Motorola Inc (MOT): Total Insider Purchases of $110.9 million

Carl Icahn already had nearly $2 billion worth of Motorola Stock. What made him invest another $100+ million in MOT? See how much Icahn made in just 3 weeks and what other insiders of Motorola are doing at Insider Monkey.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.