If you like to follow the buying trends of company insiders, you may be very interested in this list. We ran a screen on the 200 largest stocks by market cap for those that appear undervalued to free cash flows, with P/FCF below 15. We screened these stocks for those seeing significant net insider purchases 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.)
Do you think insiders are calling it right on their companies? 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. American International Group, Inc. (NYSE:AIG): Operates property and casualty insurance networks worldwide and conducts activities in the U.S. life insurance and retirement services industry. Market cap of $43.10B. P/FCF at 9.76. Net insider shares purchased over the last six months at 6.98M, which is 2.88% of the company's 242.37M share float. The stock is currently stuck in a downtrend, trading 5.55% below its SMA20, 9.13% below its SMA50, and 31.8% below its SMA200. The stock has lost 27.63% over the last year.
2. Dell Inc. (NASDAQ:DELL): Provides integrated technology solutions in the information technology industry worldwide. Market cap of $27.18B. P/FCF at 5.80. Net insider shares purchased over the last six months at 17.23M, which is 1.11% of the company's 1.55B share float. The stock has gained 14.7% over the last year.
3. News Corp. (NASDAQ:NWSA): Operates as a diversified media company worldwide. Market cap of $41.87B. P/FCF at 14.95. Net insider shares purchased over the last six months at 3.64M, which is 0.16% of the company's 2.24B share float. The stock has gained 21.95% over the last year.
Insider data sourced from Yahoo Finance; 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.