Seven Stocks Insiders Are Buying

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Insiders may sell shares for any number of reasons, but there is really only one reason insiders buy shares of a company -- they believe the stock price will move higher and they want to profit from it. Market-driven sell-offs provide a perfect opportunity for investors who have faith in a company to snap up shares. Here are some stocks that have seen insider buying recently.
American Railcar IndustriesARII
: Director and activist investor Carl Icahn has been periodically buying shares of this company, a subsidiary of Icahn Enterprises, since the beginning of August, including more than 55,000 shares worth more than $845,000 last week. American Railcar has a market cap of $328.4 million and its dividend yield is 0.8%. The share price has not recovered from the sell-off in August and it is now more than 37% lower than 90 days ago. The stock has underperformed the Dow Jones Industrial average since the beginning of the year.
Equity OneEQY
: More than 430,000 shares, worth over $6.6 million, of this real estate investment trust were purchased in September by the chairman, who has been periodically buying shares all summer. Based in North Miami Beach, this investor in shopping centers has a market cap of $1.8 billion and a dividend yield of 5.6%. Despite a pop of about 2.5% in the past week, the share price is more than 15% lower than 90 days ago. Year to date, the stock has outperformed competitors Kimco Realty
KIM
and Regency Centers
REG
.
Federal-MogulFDML
: Investor Carl Icahn has been buying shares since early August, including more than 180,000 shares last week, worth more than $2.8 million. This Michigan-based producer of automotive, marine and aerospace components is a subsidiary of Icahn Sourcing, and its market cap is $1.5 billion. The long-term EPS growth forecast is 52.4%. The share price has fallen almost 36% in the past 90 days and is near the 52-week low. The stock has outperformed that of competitor Dana Holding
DAN
since the beginning of the year.
Layne ChristensenLAYN
: This Kansas-based construction services company had more than 79,000 shares, worth over $1.8 million, purchased by the president and the COO in later September, despite a recent corruption investigation. Its market cap is $453.5 million and the P/E ratio of 10.9 is less than the industry average. Layne Christensen's share price has fallen since early April and it is more than a third lower than six months ago. In that time, the stock has underperformed the Nasdaq and the Dow Jones Industrial Average.
R.R. Donnelley RRD
: A director purchased more than 200,000 shares, worth more than $2.9 million, last week, following completion of an acquisition earlier in the month. This Chicago-based commercial printer and logistical services provider has a dividend yield of 7.4%, a market cap of $2.6 billion, and a long-range EPS growth forecast of 11.0%. Shares have traded mostly between $13 and $15 since early August; the 52-week low is $13.16. The stock has outperformed competitor Quad/Graphics
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QUAD
but underperformed the broader markets year to date.
Smithfield FoodsSFD
: In September, the CEO, COO and five directors purchased shares; more than 15,000 of them, worth more than $750,000, were bought last week. This Virginia-based meat producer has a market cap of $3.2 billion. Its P/E ratio is less than the industry average but its operating margin is greater than the average. The share price is down about 19% from six months ago but rising from a recent 52-week low. The stock has underperformed competitors Hormel Foods
HRL
and Tyson Foods
TSN
since the beginning of the year.
ValhiVHI
: The chairman of the board has been periodically buying shares of this industrial products manufacturer all summer, including more than 145,000 shares worth more than $7.6 million this past week. This company has a market cap of $6.1 billion and its dividend yield is 0.9%. Unlike some others on this list, Valhi's share price did partially recover from the August sell-off but is down more than 8% in the past month. Still, the stock has more than doubled year to date, outperforming competitor DuPont
DD
.
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Posted In: Long IdeasShort IdeasInsider TradesTrading IdeasAmerican Railcar IndustriesCarl IcahnDana HoldingDuPontEquity OneFederal-MogulHormelInsider BuyingKimco RealtyLayne ChristensenQuad/GraphicsR.R. DonnelleyRegency CentersSmithfield FoodsTyson FoodsValhi
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