Sunday, January 9, 2011

5 Stocks Insiders Are Buying in 2011

Studies show insider trading is most profitable when several insiders buy around the same time.

University of Illinois professor Josef Lakonishok and Inmoo Lee show insider purchases generate over 7 % per year in excess returns above index funds when there are several insiders purchasing.

Last week Insider Monkey covered Hercules Technology Growth Capital Inc (HTGC) which closed at $10.36 the Friday before they reported the insider purchase.

During the past week HTGC increased 4.3% beating the S&P 500 index, which increased 1.1%.

This is the 5th week in a row the Insider Monkey list of insider purchases beat the S&P 500 index.

17 of the 22 stocks that made the list beat the S&P 500 index.

Insider Monkey, your source for free insider trading data, compiled a list of companies with at least 3 insiders buying with the latest purchase made in late November:

1. Winmark Corp (WINA): Insiders have been buying since December 22nd. WINA closed at $33.16 last Friday.

2. Trailer Bridge Inc (TRBR): Insiders have been both buying and selling around $3. Douglas E. Schimmel purchased 30,000 shares at $2.91 on Thursday. TRBR closed at $2.94 on Friday.

3. Cogent Communications Group Inc (CCOI): There have been recent insider purchases at Cogent Communications around $14 per share. Last Friday CCOI closed at $13.74- less than what the insiders paid for it.

4. Diamond Foods Inc (DMND): Diamond Foods had significant insider purchases 3 months ago when it was trading around $41. Recently Diamond Foods’ Chairman and CEO Michael J Mendes bought additional shares below $52. On Friday, DMND closed at $52.30.

5. EQT Corp (EQT): There are recent insider purchases in EQT Corp. The largest transaction was two months ago at $38.38, recent transactions occurred below $45. On Friday, the stock closed at $45.62.

Source - Insider Monkey

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