Insiders Are Bullish On These Scary Financial Stocks

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Includes: AFL, BBT, BK, BLK, GGP, HCP, JPM, MS, NLY, PNC, PSA, SPG, STT, TROW, USB, 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. We believe that by imitating the investments of corporate insiders, investors are more likely to beat the market in the long term.

Financial stocks have been significantly underperforming the broader market recently and investors are scared of investing in them. Below we compiled a list of financial stocks insiders are bullish about. All companies have market cap of at least $10 billion and were purchased by at least one insider during the past three months. The market data is sourced from Finviz.

Ticker

Company

YTD Return

No. of Insiders

WFC

Wells Fargo

-21.09%

1

JPM

JPMorgan Chase

-27.12%

5

USB

U.S. Bancorp

-12.83%

1

SPG

Simon Property Group

13.77%

1

MS

Morgan Stanley

-48.21%

5

BLK

BlackRock, Inc.

-21.03%

1

PNC

PNC Financial Services

-22.25%

2

BK

The Bank of NY Mellon

-36.91%

2

PSA

Public Storage

10.96%

1

AFL

AFLAC Inc.

-34.75%

2

STT

State Street Corp.

-29.86%

1

NLY

Annaly Capital

-2.05%

1

BBT

BB & T Corp.

-18.62%

4

HCP

HCP, Inc.

-1.44%

1

TROW

T. Rowe Price Group

-23.67%

1

GGP

General Growth Properties

-24.93%

3

Click to enlarge

Here are the top 10 financial stocks insiders are bullish about with the largest market caps.

Wells Fargo & Company (NYSE:WFC): Wells Fargo is a diversified financial services company. WFC was purchased by one insider over the past three months and lost 21.09% since the beginning of this year. It has a market cap of $129B and a P/E ratio of 9.38. 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 was purchased by five insiders over the past three months and lost 27.12% since the beginning of this year. It has a market cap of $118B and a P/E ratio of 6.47. Jonathon Jacobson had $466 million invested in JPM. Andreas Halvorsen and Eric Mindich also had over $300 million of JPM shares.

U.S. Bancorp (NYSE:USB): U.S. Bancorp is a multi-state financial services holding company. USB was purchased by one insider over the past three months and lost 12.83% since the beginning of this year. It has a market cap of $44.5B and a P/E ratio of 11.08. Warren Buffett invested $1.8 billion in USB shares. Jean Marie Eveillard, Andreas Halvorsen, and Ric Dillon are also main holders of USB stocks.

Simon Property Group Inc. (NYSE:SPG): Simon is a real estate company. SPG was purchased by one insider over the past three months and returned 13.77% since the beginning of this year. It has a market cap of $32.6B and a P/E ratio of 39.01. Ken Heebner and D. E. Shaw both had over $100 million invested in SPG.

Morgan Stanley (NYSE:MS): Morgan Stanley is a global financial services firm. MS was purchased by five insiders over the past three months and lost 48.21% since the beginning of this year. It has a market cap of $27.1B and a P/E ratio of 23.35. Eric Mindich and Janathon Jacobson both invested over $300 million in MS.

BlackRock, Inc. (NYSE:BLK): BlackRock is an independent investment management firm. BLK was purchased by one insider over the past three months and lost 21.03% since the beginning of this year. It has a market cap of $25.4B and a P/E ratio of 12. John Paulson had $360 million of BLK shares.

PNC Financial Services Group Inc. (NYSE:PNC): PNC is engaged in retail banking, corporate and institutional banking, asset management, and residential mortgage banking. PNC was purchased by two insiders over the past three months and lost 22.25% since the beginning of this year. It has a market cap of $24.5B and a P/E ratio of 7.5. Ken Fisher had $363 million invested in PNC at the end of June.

The Bank of New York Mellon Corporation (NYSE:BK): BNY Mellon is a global financial services company. BK was purchased by two insiders over the past three months and lost 36.91% since the beginning of this year. It has a market cap of $23.2B and a P/E ratio of 8.71. Jean-Marie Eveillard also had over $400 million invested in BK.

Public Storage (NYSE:PSA): Public Storage is a real estate investment trust. PSA was purchased by one insider over the past three months and returned 10.96% since the beginning of this year. It has a market cap of $18.8B and a P/E ratio of 32.23. Ken Heebner invested $89 million in PSA stocks.

Aflac Inc. (NYSE:AFL): Aflac’s principal business is supplemental health and life insurance. AFL was purchased by two insiders over the past three months and lost 34.75% since the beginning of this year. It has a market cap of $16.9B and a P/E ratio of 9.48. Robert Pohly and Bill Miller both invested more than $120 million in AFL.

Disclosure: I am long MS.