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Corporate insiders sometimes have material non-public information about their companies. Trading on such information is illegal, but there are still some insiders who do so. They may get caught one day and go to jail, but it is absolutely fine for ordinary investors to imitate the trades of insiders.

There are legal ways of utilizing inside information as well. Even though insiders do not act directly on material non-public information, they can still benefit from knowing it. For example, they can delay their purchases if they know that bad news about the company will be released soon. Therefore, we believe that by focusing on the investments of insiders, investors are more likely to outperform the market in the long run.

Below we compiled a list of basic material 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 month. Market data is sourced from Finviz.

Ticker

Company

Insiders

SLB

Schlumberger Limited

2

DOW

The Dow Chemical Company

1

HAL

Halliburton Company

1

KMI

Kinder Morgan, Inc.

1

LYB

LyondellBasell Industries NV

4

CHK

Chesapeake Energy Corporation

2

RIG

Transocean Ltd.

2

MPC

Marathon Petroleum Corporation

1

Schlumberger Limited (SLB): Schlumberger is a gas and oil exploration and production company. SLB was bought by two insiders during the past month. Kjell-Erik Oestdahl bought 3730 shares at $67 on November 23.Now the stock is trading at $67.29 per share. It has a market cap of $94.5B and a P/E ratio of 21.87. Ken Fisher’s Fisher Asset Management also had $487 million invested in SLB.

The Dow Chemical Company (DOW): Dow manufactures and supplies raw materials. DOW was bought by one insider during the past month. Paul Polman bought 500 shares at $25.9654 and another 500 shares at $25.9508 on November 29. Now the stock is trading at $25.42 per share. It has a market cap of $30.4B and a P/E ratio of 10.6. Phill Gross and Robert Atchinson’s Adage Capital Management initiated a brand new $30 million of DOW during the third quarter.

Halliburton Company (HAL): Halliburton is an oilfield services firm. HAL was bought by one insider during the past month. On November 25, Joseph Andolino bought 2000 shares at $32.59. Now the stock is trading at $31.11 per share. It has a market cap of $29.3B and a P/E ratio of 10.76. Ken Fisher had $173 million invested in HAL as well.

Kinder Morgan, Inc. (KMI): Kinder Morgan is a natural gas company. KMI was bought by one insider during the past month. Richard Kinder purchased 19,723,865 shares at $25.35 per share on November 22. Now the stock is trading at $29.15 per share. It has a market cap of $20.6B and a P/E ratio of 41.13. Jean-Marie Eveillard’s First Eagle Investment Management had $157 million invested in KMI.

LyondellBasell Industries NV (LYB): LyondellBasell is a chemical company based in Netherlands. LYB was bought by four insiders during the past month. The most recent purchase occurred on December 7, when Robin Buchanan purchased 1194 shares at $33.4462. Apollo Management, as the large shareholder of the company, continuously bought the stock in November. Apollo bought more than 6 million shares in total during the past month, at prices ranging from $28.6 to $34.99.

Jagjeet Bindra, Marvin Schlanger, and Robin Buchanan, three directors at Lyondellbasell, also bought thousands shares of the stock at $30 to $35 in November. Now the stock is trading at $30.77 per share. It has a market cap of $18.1B and a P/E ratio of 5.85. Andreas Halvorsen’s Viking Global had more than $300 million invested in LYB shares at the end of September.

Chesapeake Energy Corporation (CHK): Chesapeake produces natural gas and oil as well as natural gas liquids. CHK was bought by two insiders during the past month. On November 25, Aubrey Mcclendon bought 11,000 shares at $22.7622. Earlier on November 8, another director Louis Simpson also bought 100,000 shares at $26.6911Now the stock is trading at $22.69 per share. It has a market cap of $15.4B and a P/E ratio of 12.6. Israel Englander’s Millennium Management owned $35 million worth of CHK stocks at the end of the third quarter.

Transocean Ltd. (RIG): Transocean provides offshore contract drilling services for oil and gas wells. RIG was bought by two insiders during the past month. On December 5, Magdy Ihab Toma purchased 1000 shares at $44.9969. On the same day, Steven Newman also bought 6500 shares at $44.52. Now the stock is trading at $40.18 per share. It has a market cap of $13.4B. John Paulson is also bullish about RIG. As of September 30, his Paulson & Co invested $773 million in this stock.

Marathon Petroleum Corporation (MPC): Marathon Petroleum refiners, transports and markets petroleum products. MPC was bought by one insider during the past month. Timothy Griffith purchased 1000 shares at $32.2586 on November 17. Earlier in August, Griffith also bought 1000 shares at $32.83. Now the stock is trading at $32.68 per share. It has a market cap of $12.1B and a P/E ratio of 4.51.

Source: 8 Basic Materials Stocks Insiders Are Bullish About