The volatile turns that the markets have made the past couple of weeks have created a series of buying opportunities for insiders. The financial services sector, which has been one of the most beaten down areas of the stock market, has seen some notable insider buying action in recent days. Here are four names for traders to keep an eye on given their upswing in insider activity.
Here are four names with links to our trading reports:
A 2008 Flashback
Since the beginning of August, two directors and three officers have purchased more than $3.8 million worth of Morgan Stanley (NYSE: MS) shares. The purchase prices ranged from $20.00 to $22.04 per share.
While traders have taken it to this financial services company, there have been some bright spots from an operations standpoint. Last quarter, Morgan Stanley experienced its best Q2 since 2007 for investment banking revenue and its asset management segment reported a strong turnaround. MS shares have still lost more than a third of their value since the beginning of the year.
Last Wednesday, an officer for The Bank of New York Mellon (NYSE: BK) purchased just over $1 million worth of the company's common stock. The purchase was transacted at an average price of $19.60 per share. BK has seen its stock price drop 31.4% year-to-date.
Last week insiders for JPMorgan Chase & Co. (NYSE: JPM) combined to purchase north of $6 million worth of JPM shares. The buys took place in a range of $34.50 to $35.08 per share.
The company is coming off of a Q2 which its commercial banking operations posted record revenue as well as continued loan growth. The bank also managed to buy back $3.5 billion worth of its common stock during the quarter. JPMorgan Chase has seen its stock price hold up better than that of many of its peers. Shares of JPM are only down 13.0% on the year.
One other financial play that has seen heavy insider buying in recent trading sessions in the online broker E*Trade Financial (Nasdaq: ETFC). The company's CEO picked up a little more than $1 million worth of E*Trade shares on Wednesday of last week at an average price of $10.89 per share. ETFC shares have fallen 26.7% so far this year.