The Insider Buying Report highlights those stocks that are rated highest in terms of Insider Buying for the past week.
Corporate insiders are often considered the “smart money” by Wall Street. For example, the research firm of Ned Davis Research reports that corporate insiders tend to be “relatively bullish at lows and relatively bearish at tops.”
In addition, in his book, Investment Intelligence from Insider Trading, Nejat Seyhun, who just happens to be a leading researcher in the field of insider buying and selling, illustrated that when top executives bought large amounts of his/her company’s stock, the stock outperformed the broad market by +8.9% over the next 12 months. And given that the long-term average annual return for the stock market has been +9.5% over the past 70 years, this means that stocks with heavy insider buying possess returns that are 93.7% better than the market itself. And then on the other hand, when an insider sold large amounts of his/her stock, Mr. Seyhun found that the stock underperformed the market by -5.4%, which is nearly 60% less than the market returns.
We certainly think so, but sometimes it is best to let the numbers do the talking. Below is a table showing the average annualized returns for each rating category, as determined by historical testing performed by one of the country’s largest independent institutional research firms.
| Insider Ratings
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Below is a table highlighting a handful of the stocks rated 4.0 as the date of the report. This is not a complete listing and the table below is NOT a list of stocks that we recommend buying now. To be alerted when we make a move in the Insider Portfolio be sure to take a free trial.
The Insider Buying Report
For May 3, 2016
|Company||Symbol||Industry||Insider Rating||Last Week|
|Americas Car-Mart Inc||CRMT||Automotive Retail||Heavy Buying||Heavy Buying|
|Advanced Energy Industries Inc||AEIS||Semiconductor Equipment||Heavy Buying||Heavy Buying|
|Sears Holdings Corp||SHLD||Department Stores||Heavy Buying||Heavy Buying|
|PICO Holdings Inc||PICO||Multi-Sector Holdings||Heavy Buying||Heavy Buying|
|Pennymac Finl Svcs Inc||PFSI||Thrifts & Mortgage Finance||Heavy Buying||Heavy Buying|
|Cara Therapeutics Inc||CARA||Biotechnology||Heavy Buying||Heavy Buying|
|Taubman Centers Inc||TCO||Retail REITs||Heavy Buying||Heavy Buying|
|GSV Capital Corp||GSVC||Asset Management & Custody Banks||Heavy Buying||Heavy Buying|
|Gain Capital Holdings Inc||GCAP||Specialized Finance||Heavy Buying||Heavy Buying|
|Aarons Inc||AAN||Homefurnishing Retail||Heavy Buying||Heavy Buying|
At the time of publication, the editor and/or affiliated companies own long or short positions in the following companies: None
Positions may be bought or sold while this publication is in circulation without notice.
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