Six 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. 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.
Cracker Barrel Old Country StoreCBRL
: This retailer and restaurateur had more than 287,000 shares, worth over $14.9 million, purchased by a Sardar Biglari, a so-called beneficial owner, in the last 10 days in January. Cracker Barrel has a market cap of $1.2 billion, a dividend yield of 1.9% and a return on equity of 32.9%. The share price is up more than 26% in the past three months and in the region of the 52-week high. Over that time, the stock has outperformed the Nasdaq and competitors such as Denny's
DENN
and DineEquity
DIN
.
See also: Sardar Biglari Letter to Shareholders of Cracker Barrel Old Country Store
.
Dominion ResourcesD
:The CEO, CFO and two directors scooped up more than 17,000 shares, worth more than $881,000, at the end of January. This diversified energy company has a market cap of $28.7 billion and a dividend yield of 4.2%. The stock has pulled back about 5% in the past month, falling below the 50-day moving average, but not the 200-day moving average. Over the past six months, the stock has underperformed competitors American Electric Power
AEP
and NiSource
NI
, as well as the Dow.
Hess Corp.HES
: The chairman of the board recently purchased more than 91,000 shares. That was worth almost $5 million. This New York-based integrated energy company has a market cap of $19.3 million and a P/E ratio this is a little less than the industry average. Its dividend yield is 0.7%. Shares pulled back slightly in the past week and are down more than 33% from a year ago. The stock has underperformed larger competitors BP
BP
and Exxon Mobil
XOM
, as well as the broader markets, over the past six months.
Icahn EnterprisesIEP
: Carl Icahn, the chairman of the board, bought up more than 12.9 million shares in January. That was worth more than $475 million. The market cap of his diversified company is $3.2 billion and its dividend yield is 1.0%. The P/E ratio is 6.3 and the company has a return on equity of 15.3%. Shares have traded mostly between $36 and $39 since November and are below where they were a year ago. Over the past six months, the stock has underperformed the broader markets and Warren Buffet's Berkshire Hathaway
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BRK
.
Community Bank SystemCBU
: Some 11,000 shares, worth more than $264,000, were purchased last week by seven of this regional bank's directors. The upstate New York-based bank holding company has a market cap of $1.1 billion and posted record Q4 EPS. Its long-term EPS growth forecast is 9.9% and the dividend yield is 3.7%. The share price pulled back about 3% recently from a 52-week high. Over the past six months, the stock outperformed competitors M&T Bank
MTB
and State Street
STT
, as well as the broader markets.
See also:Community Bank System Announces Agreement to Acquire 19 Branches and $955 Million in Deposits
.
ColfaxCFX
: One director recently purchased more than 2.1 million shares, worth about $50 million. The same director also bought shares in October. The Maryland-based company makes industrial products and has a market cap of $1.3 billion. The long-term EPS growth forecast is 19.6%. The P/E ratio is hefty but expected to fall. The share price has pulled back a bit in the past week and is down more than 9% from a recent 52-week high. The stock has outperformed the broader markets and competitor Robbins & Myers
RBN
over the past six months.
See also:Insider Sentiment Is Neutral to Bearish in January 2012
.
ACTION ITEMS: Bullish: Investors interested in exchange traded funds focused on insider sentiment might want to consider the following trades:
  • Guggenheim Insider Sentiment NFO is about 31% higher than the 52-week low.
  • Direxion All Cap Insider Sentiment Shares KNOW is more than 19% higher than the 52-week low.
  • Direxion Large Cap Insider Sentiment Shares INSD is almost 12% higher than the 52-week low.
Bearish: Traders may prefer to consider these alternative positions to some of the stocks listed above:
  • Papa John's International PZZA is up about 47% from the 52-week low.
  • Marathon Oil MRO is up about 66% from the 52-week low.
  • Danaher DHR is up more than 34% from the 52-week low.
  • Republic Bancorp RBCAA is up more than 66% from the 52-week low.
Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.
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Posted In: Long IdeasNewsShort IdeasInsider TradesTrading IdeasAmerican Electric PowerBerkshire HathawaybpCarl IcahnColfaxCommunity Bank SystemCracker Barrel Old Country StoredanaherDenny’sDineequitydominion resourcesExxon MobilhessIcahn EnterprisesInsider Buyinginsider trading ETFsM&T bankMarathon oilNiSourcePapa John’s InternationalRepublic BancorpRobbins & MyersSardar BiglariState StreetWarren Buffet
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