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We track insiders to get ideas about where to put our money. Corporate insiders have material non-public information about their companies. Although they usually don’t act on them directly it affects their buy or sell decisions. For example when corporate insiders know bad news about their stock is coming out they usually postpone their purchases. This isn’t illegal, yet insiders avoid large losses and manage to beat ordinary investors. There are several other situations where insiders have an advantage over ordinary investors. That’s why academic studies have shown that imitating insider purchases yields above market returns.

Below we compiled a list of consumer goods stocks that insiders are bullish about recently. All companies have at least a $2 billion market cap and were purchased by at least one insider in the past month.

Market data sourced from Finviz.

Ticker

Company

Insiders

F

Ford Motor Co.

1

K

Kellogg Company

1

MJN

Mead Johnson Nutrition Company

1

LO

Lorillard, Inc.

1

GMCR

Green Mountain Coffee Roasters Inc.

3

CLX

The Clorox Company

1

BEAM

Beam, Inc.

1

SEE

Sealed Air Corporation

2

ATR

AptarGroup, Inc.

2

HAR

Harman International Industries Inc.

1

Ford Motor Co.: Ford produces cars and trucks. F was bought by one insider during the past month. Clay William Ford purchased 25,000 shares at $9.89 on November 21. Ford also purchased 50,000 shares at around $10 in September. Now the stock is trading at $11.25. It has a market cap of $41.4B and a P/E ratio of 6.57. Ken Heebner had $135 million invested in F shares at the end of September.

Kellogg Company: Kellogg produces cereal and convenience foods. K was bought by one insider during the past month. 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 $50.06. It has a market cap of $17.6B and a P/E ratio of 15.16.

Mead Johnson Nutrition Company: Mead Johnson is a pediatric nutrition company. MJN was bought by one insider during the past month. Robert Singer purchased 1,000 shares at $69.704 on November 21. Singer also purchased 1,000 shares at $70.65 on November 18 and another 1,000 shares at $70.49 on November 17. Now the stock is trading at $75.93. It has a market cap of $15.2B and a P/E ratio of 29.49. Bain Capital and Jim Simons also both had over $100 million invested in MJN.

Lorillard, Inc.: Lorillard manufactures cigarettes in the United States. LO was bought by one insider during the past month. On November 4, Kit Dietz purchased 1,400 shares at $109.49. Now the stock is trading at $112. It has a market cap of $14.9B and a P/E ratio of 14.81. Jim Simons had over $300 million invested in LO. Jean-Marie Eveillard’s First Eagle Investment Management also invested over $250 million in this stock.

Green Mountain Coffee Roasters Inc.: Green Mountain Coffee Roasters is a coffee maker. GMCR was bought by three insiders during the past month. Douglas Daft purchased 4,000 shares at $54.452 on November 17. Three days earlier, two other directors of the company, Michael Mardy and David Moran, purchased over 2,000 shares in total at around $43 per share. Now the stock is trading at $59.78. It has a market cap of $8.7B and a P/E ratio of 43.32.

The Clorox Company: Clorox manufactures consumer and institutional products. CLX was bought by one insider during the past month. On November 4, Michael Costello bought 400 shares at $63.96. Now the stock is trading at $65.7. It has a market cap of $8.6B and a P/E ratio of 31.35.

Beam, Inc.: Beam manufactures and sells a variety of products, including distilled spirits, home and security products, and golf products. BEAM was bought by one insider during the past month. Peter Wilson purchased 20,000 shares at $49.8027 on November 10. Now the stock is trading at $52.41. It has a market cap of $8.1B and a P/E ratio of 8.98.

Source: Top Consumer Goods Stocks Insiders Are Bullish About