Insiders Are Bullish About These Dow Stocks

|
Includes: AA, BA, BAC, CAT, CSCO, DIS, GE, JNJ, JPM, MDLZ, MRK, PFE, PG, XOM
by: Insider Monkey

Corporate insiders have material non-public information and they sometimes trade based on such information. Other times they have an edge because they know their companies and industries better than almost all other investors. Therefore, by imitating the insiders, investors are more likely to beat the market.

Here are the 14 Dow stocks with insider purchases over the past six months:

JPMorgan (NYSE:JPM) is a financial holding company. JPM was purchased by six insiders over the past six months and lost 31.98% since the beginning of this year. It has a market cap of $115.37 billion and a P/E ratio of 6.32. John Paulson invested $252 million in JPM shares at the end of June (check out Paulson’s top stock picks).

Kraft Foods (KFT) manufactures and markets packaged food products. KFT was purchased by two insiders over the past six months and returned 8.36% since the beginning of this year. It has a market cap of $59.48 billion and a P/E ratio of 19.33. Warren Buffett had $3.5 billion invested in KFT shares (check out Buffett’s top stock picks). Bill Ackman and Nelson Peltz also had over $600 million invested in KFT.

Merck & Co., Inc. (NYSE:MRK) is a global health care company. MRK was purchased by two insiders over the past six months and lost 10.60% since the beginning of this year. It has a market cap of $95.57 billion and a P/E ratio of 22.47. Ric Dillon invested $173 million in MRK shares.

Alcoa Inc. (NYSE:AA) is engaged in the production and management of aluminum. AA was purchased by one insider over the past six months and lost 35.65% since the beginning of this year. It has a market cap of $10.76 billion and a P/E ratio of 11.92. John Paulson invested $430 million in AA shares.

Bank of America (NYSE:BAC) is a financial institution, serving individual consumers, small and middle market businesses, corporations and governments with banking, investing, asset management and other financial and risk management products and services. BAC was purchased by one insider over the past six months and lost 57.17% since the beginning of this year. It has a market cap of $63.44 billion. John Paulson had over $600 million invested in BAC.

The Boeing Company (NYSE:BA) is an aerospace company. BA was purchased by one insider over the past six months and lost 9.98% since the beginning of this year. It has a market cap of $43.90 billion and a P/E ratio of 12.55. Ken Fisher invested $382 million in BA shares (check out Fisher’s top stock picks). Legendary short seller Jim Chanos is also long BA because he is hedging his short bets in EADS and he thinks BA is a better investment than EADS.

Caterpillar Inc. (NYSE:CAT) is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. CAT was purchased by one insider over the past six months and lost 20.48% since the beginning of this year. It has a market cap of $48.13 billion and a P/E ratio of 12.32. Ken Fisher invested $480 million in CAT shares.

Cisco Systems, Inc. (NASDAQ:CSCO) designs, manufactures, and sells products related to the communications and information technology industry. CSCO was purchased by one insider over the past six months and lost 24.63% since the beginning of this year. It has a market cap of $83.43 billion and a P/E ratio of 13.33. Jean-Marie Eveillard invested $483 million in CSCO shares.

Exxon Mobil (NYSE:XOM) is a manufacturer and marketer of commodity petrochemicals. XOM was purchased by one insider over the past six months and lost 5.49% since the beginning of this year. It has a market cap of $335.87 billion and a P/E ratio of 9.08. Ken Fisher had over $200 million invested in XOM shares.

General Electric Company (NYSE:GE) is a diversified technology and financial services corporation. GE was purchased by one insider over the past six months and lost 15.70% since the beginning of this year. It has a market cap of $160.28 billion and a P/E ratio of 11.76. Ken Fisher invested nearly $600 million in GE shares.

Johnson & Johnson (NYSE:JNJ) is engaged in the research and development, manufacture and sale of products in the health care field. JNJ was purchased by one insider over the past six months and returned 1.21% since the beginning of this year. It has a market cap of $168.67 billion and a P/E ratio of 14.74. Warren Buffett had $2.8 billion invested in JNJ. Ken Fisher also had $713 million JNJ shares.

Pfizer (NYSE:PFE) is a research-based, global biopharmaceutical company. PFE was purchased by one insider over the past six months and returned 2.04% since the beginning of this year. It has a market cap of $136.62 billion and a P/E ratio of 16.39. David Einhorn and Ken Fisher both had over $400 million invested in PFE shares.

Procter & Gamble (NYSE:PG) is focused on providing consumer packaged goods. PG was purchased by one insider over the past six months and lost 3.29% since the beginning of this year. It has a market cap of $166.58 billion and a P/E ratio of 15.43. Warren Buffett invested $4.9 billion in PG stocks. D. E. Shaw had nearly $300 million of PG.

The Walt Disney Company (NYSE:DIS) is a diversified worldwide entertainment company. DIS was purchased by one insider over the past six months and lost 21.87% since the beginning of this year. It has a market cap of $54.96 billion and a P/E ratio of 12.52. Mason Hawkins invested over $1 billion in DIS stocks.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.