Insider Purchases In 15 Most Undervalued Stocks

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 |  Includes: BK, BLK, CAT, CSX, DIS, DVN, F, FDX, GLW, GM, HON, JPM, OXY, SLB, WFC
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.

Though some stocks had very poor performance during the recent market turmoil, most analysts still consider them as undervalued by the market and insiders are purchasing them. It might be a good time to buy such stocks.

Here are the 15 undervalued stocks with insider purchases over the past three months. These stocks are within 10% of their 52-week lows and at least 25% below their average analyst target price. We selected the top 15 of such stocks with the biggest market cap. The analyst target price is sourced from Yahoo Finance and the other market data is sourced from Finviz.

Ticker

Company

Price

Target Price

Insiders

WFC

Wells Fargo

24.41

33.44

1

JPM

JPMorgan Chase

30.62

50.15

5

SLB

Schlumberger

60.2

112.41

1

OXY

Occidental Petroleum

73.92

118.95

1

DIS

Walt Disney Co.

30.31

42.74

1

CAT

Caterpillar Inc.

75.74

114.06

1

F

Ford Motor Co.

9.95

17.63

2

HON

Honeywell International

43.55

59.56

3

GM

General Motors

21.06

39.06

4

BLK

BlackRock, Inc.

146.98

206.43

1

DVN

Devon Energy

56.42

100.44

1

BK

The Bank of NY Mellon

18.54

28.63

2

FDX

FedEx Corporation

69.55

103.7

1

CSX

CSX Corp.

19.02

28.26

1

GLW

Corning Inc.

12.14

19.81

1

Click to enlarge

Wells Fargo & Company (NYSE:WFC): Wells Fargo is a diversified financial services company. WFC recently traded at $24.41 per share while its mean analyst target price is $33.44. It lost 6.33% over the past 52 weeks and is within 7.40% of its 52-week low. It was purchased by one insider over the past three months. It has a market cap of $125.1 billion and a P/E ratio of 9.18. Warren Buffett invested $9.9 billion in WFC. John Paulson and Ken Fisher are also main investors in WFC (check out Buffett’s top stock picks).

JPMorgan Chase & Co. (NYSE:JPM): JPMorgan Chase is a financial holding company. JPM recently traded at $30.62 per share while its mean analyst target price is $50.15. It lost 24.52% over the past 52 weeks and is within 6.59% of its 52-week low.

It was purchased by five insiders over the past three months. It has a market cap of $115.4 billion and a P/E ratio of 6.32. Jonathon Jacobson had $466 million invested in JPM. Andreas Halvorsen and Eric Mindich also had over $300 million of JPM shares.

Schlumberger Limited (NYSE:SLB): Schlumberger is a supplier of technology, integrated project management and information solutions to the international oil and gas exploration and production industry. SLB recently traded at $60.2 per share while its mean analyst target price is $112.41.

It gained 2.12% over the past 52 weeks but is within 3.25% of its 52-week low. It was purchased by one insider over the past three months. It has a market cap of $82.6 billion and a P/E ratio of 15.07. Ken Fisher had over $700 million invested in SLB.

Occidental Petroleum Corporation (NYSE:OXY): Occidental Petroleum is an international oil and gas exploration and production company. OXY recently traded at $73.92 per share while its mean analyst target price is $118.95. It lost 3.51% over the past 52 weeks and is within 5.64% of its 52-week low. It was purchased by one insider over the past three months. It has a market cap of $58.7B and a P/E ratio of 10.41. Ralph V. Whitworth, Ken Fisher and Ric Dillon all invested over $300 million in OXY (see Ric Dillon’s top stock picks).

Walt Disney Co. (NYSE:DIS): The Walt Disney Company is a diversified worldwide entertainment company. DIS recently traded at $30.31 per share while its mean analyst target price is $42.74. It lost 10.20% over the past 52 weeks and is within 3.30% of its 52-week low. It was purchased by one insider over the past three months. It has a market cap of $55.4 billion and a P/E ratio of 12.64. Mason Hawkins invested over $1 billion in DIS shares.

Caterpillar Inc. (NYSE:CAT): Caterpillar is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. CAT recently traded at $75.74 per share while its mean analyst target price is $114.06. It lost 5.62% over the past 52 weeks and is within 3.60% of its 52-week low. It was purchased by one insider over the past three months. It has a market cap of $47.7 billion and a P/E ratio of 12.21. Ken Fisher had $480 million of CAT shares.

Ford Motor Co. (NYSE:F): Ford is a producer of cars and trucks. F recently traded at $9.95 per share while its mean analyst target price is $17.63. It lost 21.50% over the past 52 weeks and is within 6.38% of its 52-week low. It was purchased by two insiders over the past three months. It has a market cap of $37.5 billion and a P/E ratio of 5.87. Ken Heebner had $230 million invested in F shares.

Honeywell International Inc. (NYSE:HON): Honeywell is a diversified technology and manufacturing company. HON recently traded at $43.55 per share while its mean analyst target price is $59.56. It lost 2.14% over the past 52 weeks and is within 4.36% of its 52-week low. It was purchased by three insiders over the past three months. It has a market cap of $33.2 billion and a P/E ratio of 13.56. Ken Fisher had $329 million of HON shares.

General Motors Company (NYSE:GM): GM is a global automotive company. GM recently traded at $21.06 per share while its mean analyst target price is $39.06. It lost 43.03% over the past 52 weeks and is within 6.47% of its 52-week low. It was purchased by four insiders over the past three months. It has a market cap of $32.8 billion and a P/E ratio of 4.56. Jeffrey Tannenbaum had over $200 million of GM shares.

BlackRock, Inc. (NYSE:BLK): BlackRock is an independent investment management firm. BLK recently traded at $146.98 per share while its mean analyst target price is $206.43. It lost 20.80% over the past 52 weeks and is within 4.15% of its 52-week low. It was purchased by one insider over the past three months. It has a market cap of $26.4 billion and a P/E ratio of 12.03. John Paulson had $360 million of BLK shares (check out Paulson’s top stock picks).

Devon Energy Corporation (NYSE:DVN): Devon is an independent energy company engaged in exploration, development and production of natural gas and oil. DVN recently traded at $56.42 per share while its mean analyst target price is $100.44. It lost 29.00% over the past 52 weeks and is within 2.41% of its 52-week low. It was purchased by one insider over the past three months. It has a market cap of $23.1 billion and a P/E ratio of 16.24. Ric Dillon and Jean-Marie Eveillard both had over $200 million invested in DVN.

The Bank of New York Mellon Corporation (NYSE:BK): BNY Mellon is a global financial services company. BK recently traded at $18.54 per share while its mean analyst target price is $28.63. It lost 37.91% over the past 52 weeks and is within 1.2% of its 52-week low. It was purchased by two insiders over the past three months. It has a market cap of $22.8 billion and a P/E ratio of 8.57. Mason Hawkins had $883 million of BK shares. Jean-Marie Eveillard also had over $400 million invested in BK.

FedEx Corporation (NYSE:FDX): FedEx provides a portfolio of transportation, e-commerce and business services. FDX recently traded at $69.55 per share while its mean analyst target price is $103.7. It lost 27.31% over the past 52 weeks and is within 7.51% of its 52-week low. It was purchased by one insider over the past three months. It has a market cap of $21.3 billion and a P/E ratio of 13.93. Mason Hawkins had $761 million invested in FDX.

CSX Corp. (NASDAQ:CSX): CSX is a transportation supplier. CSX recently traded at $19.02 per share while its mean analyst target price is $28.26. It lost 9.37% over the past 52 weeks and is within 7.89% of its 52-week low. It was purchased by one insider over the past three months. It has a market cap of $21.1 billion and a P/E ratio of 12.42. Jeffrey Vinik invested $116 million in CSX shares.

Corning Inc. (NYSE:GLW): Corning is a technology-based company. GLW recently traded at $12.14 per share while its mean analyst target price is $19.81. It lost 35.54% over the past 52 weeks and is within 1.43% of its 52-week low. It was purchased by one insider over the past three months. It has a market cap of $19.4 billion and a P/E ratio of 5.88. Lee Ainslie invested $425 million in GLW stocks.

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