Insider purchases are generally more informative than insider sales. 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 much 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. There are several academic studies that support this view.
Below we compiled a list of large cap stocks that insiders are bullish about this month. All companies have at least $10 billion market caps and were purchased by at least one insider so far in November.
The Coca-Cola Company (NYSE:KO): The Coca-Cola Company is a non-alcoholic beverage company. Barry Diller, Director at Coca-Cola, purchased 100,000 shares at $67.1129 on November 1. Diller also bought 235,000 shares at $64.438 in February. Now KO is trading at $68.12. It has a market cap of $154.7B, a P/E ratio of 12.55, and returned 5.79% since the beginning of this year. Warren Buffett invested over $13 billion in KO.
Boeing Co. (NYSE:BA): The Boeing Company is an aerospace company. Lawrence Kellner, director at Boeing, bought 1,000 shares at $65.0714 on November 3. Another director Susan Schwab also bought 346 shares at $57.959 in August. Now BA is trading at $66.92. It has a market cap of $49.7B, a P/E ratio of 13.25, and returned 5.05% since the beginning of this year. Ken Fisher invested $382 million in BA shares.
Ford Motor Co. (NYSE:F): Ford is a producer of cars and trucks. F was purchased by three insiders over the past three months. Irvine Hockaday purchased 3,000 shares at $11.1789 on November 2. Hockaday bought 15,000 shares at $10.05 in late August as well. Now F is trading at $11.14 per share. It has a market cap of $42.3B, a P/E ratio of 6.71, and lost 33.65% since the beginning of this year. Ken Heebner initiated a brand new $230 million of F stocks over the second quarter.
LyondellBasell Industries NV (NYSE:LYB): LyondellBasell Industries NV is a Netherlands-based company engaged in the chemical industry. Robin Buchanan, director at the company, purchased 7,235 shares at $34.516 on November 10. Now the stock is trading at $36.08. It has a market cap of $20.5B, a P/E ratio of 6.62, and returned 5.74% since the beginning of this year. Andreas Halvorsen’s Viking Global had $400+ million invested in LYB as of June 30. Dan Loeb also had $150+ million of LYB shares.
Time Warner Cable Inc. (TWC): Time Warner Cable is a cable operator in the United States with systems located in New York State, the Carolinas, Ohio, Southern California and Texas. Peter Haje, director at Time Warner Cable, purchased 2,000 shares at $62.879 on November 3. Now TWC is trading at $61.03. It has a market cap of $19.5B, a P/E ratio of 14.16, and lost 5.63% since the beginning of this year. Andreas Halvorsen invested over $700 million in TWC. Lee Ainslie, George Soros, Ken Fisher and many other famous hedge fund managers also had TWC in their portfolio.
Kellogg Company (NYSE:K): Kellogg Company is engaged in the manufacture and marketing of ready-to-eat cereal and convenience foods. James Jenness purchased 2,500 shares at $49.896 on November 8 and another 7,500 shares at $49.2633 a day later. Now the stock is trading at $49.72. It has a market cap of $17.9B, a P/E ratio of 15.35, and lost 0.42% since the beginning of this year. John Brennan’s Sirios Capital Management initiated a brand new $29 million of Kellogg stocks over the second quarter.
Chesapeake Energy Corporation (NYSE:CHK): Chesapeake is a producer of natural gas and oil and natural gas liquids in the United States. Louis Simpson bought 100,000 shares at $26.6911 on November 8. CHK was purchased by another six insiders in August and September. Now CHK is trading at $26.45. It has a market cap of $17.4B, a P/E ratio of 14.22, and returned 2.96% since the beginning of this year. Mason Hawkins had $2.6 billion invested in CHK stocks.
Northrop Grumman Corporation (NYSE:NOC): Northrop Grumman Corporation is an integrated enterprise consisting of businesses that cover the entire security spectrum, from undersea to outer space and into cyberspace. On November 7, Linda Mills bought 490 shares at $57.38 and 885 shares at $58.24. Now the stock is trading at $59.3. It has a market cap of $15.5B, a P/E ratio of 9.63, and returned 3.38% since the beginning of this year. Jean-Marie Eveillard invested $200+ million in NOC at the end of second quarter.
Lorillard, Inc. (NYSE:LO): Lorillard is the manufacturer of cigarettes in the United States. Kit Dietz bought 1,400 shares on November 4 at $109.49. Now LO is trading at $109.49. It has a market cap of $14.8B, a P/E ratio of 14.74, and returned 38.82% since the beginning of this year. Jean-Marie Eveillard had $250 million invested in LO.
Ameriprise Financial Inc. (NYSE:AMP): Ameriprise Financial provides financial planning, products and services. Director at Ameriprise, Francis Robert Sharpe, bought 12,000 shares at $45.1283 and another 4,000 shares at $46.6716 on November 3. Now AMP is trading at $47.22. It has a market cap of $10.7B, a P/E ratio of 9.92, and lost 16.59% since the beginning of this year. Stephen Mandel’s Lone Pine Capital had $100+ million invested in AMP. Ken Griffin also had $61 million of AMP stocks.
Best Buy Co. Inc. (NYSE:BBY): Best Buy is a multinational retailer of consumer electronics, home office products, entertainment products, appliances and related services. Lisa Caputo purchased 358 shares at $25.4 on November 1. Caputo has been continuously buying BBY in the past few months. BBY is currently trading at $28.09 a share. It has a market cap of $10.2B, a P/E ratio of 9.46, and lost 16.75% since the beginning of this year. Bill Miller is another main holder of BBY.
Disclosure: I am long CHK.