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.
Below we compiled a list of healthcare stocks insiders are bullish about. All companies have market caps of at least $10 billion and were purchased by at least one insider during the past three months. The market data are sourced from Finviz.
Ticker | Company | No. of Insiders | YTD Return |
Johnson & Johnson | 1 | 3.22% | |
Pfizer Inc. | 1 | 3.65% | |
Merck & Co. Inc. | 2 | -9.97% | |
Amgen Inc. | 1 | -1.00% | |
UnitedHealth Group | 1 | 19.63% | |
Medtronic, Inc. | 3 | -11.75% | |
Celgene Corporation | 4 | 3.67% | |
WellPoint Inc. | 1 | 12.07% | |
Stryker Corp. | 1 | -12.05% | |
Aetna Inc. | 1 | 17.47% | |
Valeant Pharma | 6 | 19.65% |
Here are the top 10 healthcare stocks insiders are bullish about with the largest market caps.
Johnson & Johnson (JNJ): Johnson & Johnson is engaged in the research and development, manufacture and sale of a range of products in the healthcare field. JNJ was purchased by one insider over the past three months and returned 3.22% since the beginning of this year. It has a market cap of $170B and a P/E ratio of 14.87. Warren Buffett had $2.8 billion of JNJ stocks (see Warren Buffett’s top stock picks). Ken Fisher, Ric Dillon and Bill Miller were also main investors in JNJ.
Pfizer Inc. (PFE): Pfizer is a research-based, global biopharmaceutical company. PFE was purchased by one insider over the past three months and returned 3.65% since the beginning of this year. It has a market cap of $137B and a P/E ratio of 16.44. David Einhorn and Ken Fisher both had over $400 million invested in PFE stocks.
Merck & Co. Inc. (MRK): Merck is a global healthcare company. MRK was purchased by two insiders over the past three months and lost 9.97% since the beginning of this year. It has a market cap of $96.6B and a P/E ratio of 22.72. Ric Dillon had $173 million invested in MRK.
Amgen Inc. (AMGN): Amgen is an independent biotechnology medicines company. AMGN was purchased by one insider over the past three months and lost 1.00% since the beginning of this year. It has a market cap of $50.2B and a P/E ratio of 11.3. Jim Simons had $140 million of AMGN stocks (see billionaire Jim Simons’ top stock picks).
UnitedHealth Group, Inc. (UNH): UnitedHealth Group Incorporated is a diversified health and well-being company. UNH was purchased by one insider over the past three months and returned 19.63% since the beginning of this year. It has a market cap of $46.0B and a P/E ratio of 9.59. Bill Miller, Ric Dillon, and D. E. Shaw also had over $100 million of UNH stocks.
Medtronic, Inc. (MDT): Medtronic is engaged in research, design, manufacture and sale of products to alleviate pain, restore health and extend life. MDT was purchased by three insiders over the past three months and lost 11.75% since the beginning of this year. It has a market cap of $33.9B and a P/E ratio of 11.2. Ric Dillon and John Paulson also both invested about $200 million in MDT.
Celgene Corporation (CELG): Celgene Corporation is a global integrated biopharmaceutical company. CELG was purchased by four insiders over the past three months and returned 3.67% since the beginning of this year. It has a market cap of $28.1B and a P/E ratio of 28.12. Bain Capital invested over $400 million in CELG.
WellPoint Inc. (WLP): WellPoint is a health benefits company in terms of medical membership in the United States. WLP was purchased by one insider over the past three months and returned 12.07% since the beginning of this year. It has a market cap of $22.7B and a P/E ratio of 8.34. Jean-Marie Eveillard had $260 million invested in WLP.
Stryker Corp. (SYK): Stryker is a medical technology company. SYK was purchased by one insider over the past three months and lost 12.05% since the beginning of this year. It has a market cap of $18.2B and a P/E ratio of 14.8. Steven Cohen also invested $81 million in SYK.
Aetna Inc. (AET): Aetna is a diversified healthcare benefits company. AET was purchased by one insider over the past three months and returned 17.47% since the beginning of this year. It has a market cap of $13.3B and a P/E ratio of 7.72. Larry Robbins invested over $200 million in AET shares. Bill Miller invested $156 million in AET shares.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
