Seven Stocks Insiders Are Buying
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. Pullbacks and 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 Public Education (NASDAQ: APEI): This online higher education provider had more than 340,000 shares, worth over $12.6 million, purchased by a director during Thanksgiving week. The company has a market cap of $682.9 million and a long-term EPS growth forecast of 21.9%. The share price reached a 52-week low in October but has since been on the rise but is still more than 12% lower than six months ago. In that time, the stock has underperformed the Nasdaq, but it has outperformed competitors such as Corinthian Colleges (NASDAQ: COCO) and DeVry (NYSE: DV).
Boston Scientific (NYSE: BSX): In November, three directors purchased 143,000 shares, worth more than $771,000. One of those directors also bought shares in October. This Massachusetts-based medical device maker received FDA approvals this week, and it has a market cap of $8.7 billion. The P/E ratio is less than the industry average and the operating margin is much higher than the industry average. The share price jumped almost 11% in the past week but is still about 22% lower year to date. The stock has underperformed the broader markets over the past six months.
Federal-Mogul (NASDAQ: FDML): Carl Icahn, nonexecutive board chairman, purchased more than 350,000 shares, worth more than $4.8 million, in November. He has been periodically buying shares of this vehicle parts manufacturer since August. This company has a market cap of $1.5 billion and a long-term EPS growth forecast of 52.4%. Its stock is up about 16% from a recent 52-week low but still down about 13% from three months ago. Year to date, the stock has outperformed competitor Dana Holding (NYSE: DAN) but underperformed the broader markets.
Hot Topic (NASDAQ: HOTT): Two directors of this mall-based specialty retailer purchased 140,000 shares in November. That was worth more than $6.9 million. These same directors also bought shares back in May. The market cap of this California-based company is $305.8 million and its dividend yield is 3.9%. The long-term EPS growth forecast is 20.8%. Shares have sold mostly between $6.50 and $7.50 since early November but are about 20% higher year to date. The stock has underperformed Gap (NYSE: GPS) and Limited Brands (NYSE: LTD) over the past six months.
Incyte (NASDAQ: INCY): Three directors have purchased more than 2.4 million shares, worth more than $32.3 million, in recent weeks. This Delaware-based biotech company recently received approval for a cancer drug, and it now has a market cap of $1.8 billion and a long-range EPS growth forecast of 25.0%. The share price jumped more than 22% in the past week on news of the approval, but the stock is still more than 12% lower than six months ago. The stock has underperformed competitor Amgen (NASDAQ: AMGN) and the broader markets in that time.
Kronos Worldwide (NYSE: KRO): The chairman, the CEO and a director bought more than 550,000 shares, worth more than $10.1 million, in November. And an additional 78,000 shares were bought by insiders in October and September. This Dallas-based pigments maker has a market cap of $2.3 billion and a dividend yield of 3.1%. The return on equity of 41.9% and the long-term EPS growth forecast is 20.5%. The share price is more than 31% lower than six months ago, despite rising more than 9% in the past week. Over the past six months, this stock also underperformed the broader markets.
Sirona Dental Systems (NASDAQ: SIRO): The CEO, the president, the CFO and a senior VP purchased more than 55,000 shares in November. That was worth more than $2.2 million. The dental equipment maker has a market cap of $2.5 billion and an operating margin much higher than the industry average. The long-term EPS growth forecast is 13.4%. The share price has jumped more than 13% in the past week but is still about 12% lower than six months ago. The stock has outperformed the broader markets since the beginning of the year.
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Tags: american public education, amgen, boston scientific, Carl Icahn, corinthian colleges, Dana Holding, Devry, Federal-Mogul, GAP, Hot Topic, Incyte, Insider Buying, kronos worldwide, LIMITED BRANDS, Sirona Dental Systems