Investors follow the buying trends of company insiders because, after all, they know more about their companies than anyone else.
We ran a screen on dividend stocks with low debt (most recent quarter total debt to assets below 0.2) for those that have seen significant net insider buying over the last six months.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.
We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.
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Do you think insiders are calling it right on these names? Use this list as a starting-off point for your own analysis.
List sorted by net insider purchases as a percent of share float.
1. Everest Re Group Ltd. (RE): Property & Casualty Insurance Industry. Market cap of $4.52B. Dividend yield at 2.31%, payout ratio at 19.87%. MRQ total debt to assets at 0.05. Insider purchases over the last 6 months at 1.25M, which is 2.84% of the company's share float. The stock has gained 10.81% over the last year.
2. Maiden Holdings, Ltd. (MHLD): Property & Casualty Insurance Industry. Market cap of $656.20M. Dividend yield at 3.09%, payout ratio at 26.09%. MRQ total debt to assets at 0.10. Insider purchases over the last 6 months at 134.46K, which is 0.27% of the company's share float. The stock has gained 36.23% over the last year.
3. Roma Financial Corp. (ROMA): Savings & Loans Industry. Market cap of $301.59M. Dividend yield at 3.22%, payout ratio at 29.79%. MRQ total debt to assets at 0.02. Insider purchases over the last 6 months at 9.50K, which is 0.15% of the company's share float. The stock is a short squeeze candidate, with a short float at 5.24% (equivalent to 21.73 days of average volume). It's been a rough couple of days for the stock, losing 5.77% over the last week.
*Insider data sourced from Yahoo! Finance, total debt to assets data sourced from Screener.co, all other data sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.