Jim Cramer Says “The Insider Buying Says You Should Buy Eli Lilly”

Eli Lilly and Company (NYSE:LLY) is one of the stocks to watch as Jim Cramer looked at market rationality. Cramer discussed the stock purchases by insiders during the episode. He said:

“Or how about Eli Lilly? After that disappointing pill form of the GLP-1 drug, which didn’t cause enough weight loss, and the subsequent clubbing of Lilly’s stock, insiders started to buy the stock like crazy. CEO David Ricks and board member J. Erik Fyrwald, the CEO of IFF… bought $1 million worth each. Daniel Skovronsky, the chief scientific officer, he bought $634,000 worth, and Jacob Van Naarden, he’s president of Lilly Oncology… bought $647,000 worth.

These are not small amounts; they’re not painting the tape, so to speak. This is a big deal. To me, the insider buying says you should buy Eli Lilly, too. And I rerated the stock positively for my Charitable Trust in today’s monthly CNBC Investing Club meeting. Rational.”

Eli Lilly and Company (NYSE:LLY) develops and markets pharmaceuticals across diabetes, obesity, oncology, immunology, neuroscience, and other therapeutic areas.

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Disclosure: None. This article is originally published at Insider Monkey.