The market closely follows the buying trends of company insiders to find which companies have employees buying company stock. Because insiders have more information about their companies than anyone else, their purchase of company stock is viewed as a big vote of confidence in the company.
We ran a screen on large-cap companies, with market caps over $10 billion, for those with the most significant net insider buying 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 these insiders are calling it right? Use this list as a starting point for your own analysis.
List sorted by net insider purchases as a percent of share float.
1. General Growth Properties Inc. (NYSE:GGP): Operates as a real estate investment trust in the United States. Market cap of $13.02B. Net insider purchases over the last six months at 160.46M, which is 20.18% of the company's 795.32M share float. The stock has had a couple of great days, gaining 7.16% over the last week.
2. Motorola Solutions, Inc. (NYSE:MSI): Provides business and mission critical communication products and services for enterprise and government customers worldwide. Market cap of $15.24B. Net insider purchases over the last six months at 17.60M, which is 6.73% of the company's 261.49M share float. The stock has had a couple of great days, gaining 7.09% over the last week.
3. 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 $44.02B. Net insider purchases over the last six months at 6.98M, which is 2.87% of the company's 243.56M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 3.41). The stock has had a couple of great days, gaining 15.5% over the last week.
4. VMware, Inc. (NYSE:VMW): Provides virtualization and virtualization-based cloud infrastructure solutions primarily in the United States. Market cap of $40.21B. Net insider purchases over the last six months at 1.62M, which is 2.09% of the company's 77.71M share float. The stock has had a couple of great days, gaining 6.57% over the last week.
*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.