Wish you could know what management really thought about their companies?
One great way for an inside look is to consider the stock buying trends of company insiders. Companies with significant net buying from their insiders (i.e. members of the board and upper management) are viewed favorably by analysts because the buying indicates that insiders who know more about their companies than anybody are bullish about their employers.
We ran a screen on stocks of the S&P 500 (NYSEARCA:SPY) paying dividend yields above 1% for companies seeing 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.
(Click chart for more detail)
Do you think these insiders are calling it right on these names? Use this list as a starting point for your own analysis.
List sorted by net insider purchases as a percent of share float.
1. Motorola Solutions, Inc. (NYSE:MSI): Provides business and mission critical communication products and services for enterprise and government customers worldwide. Market cap of $14.87B. Dividend yield at 1.93%, payout ratio at 9.30%. Net insider shares purchased over the last six months at 17.60M, which is 6.73% of the company's 261.49M share float. The stock has gained 33.05% over the last year.
2. Titanium Metals Corporation (TIE): Mills, manufactures, and distributes titanium and titanium alloys. Market cap of $2.57B. Dividend yield at 2.05%, payout ratio at 24.63%. Net insider shares purchased over the last six months at 3.31M, which is 3.77% of the company's 87.58M share float. It's been a rough couple of days for the stock, losing 9.85% over the last week.
3. News Corp. (NASDAQ:NWSA): Operates as a diversified media company worldwide. Market cap of $43.20B. Dividend yield at 1.11%, payout ratio at 21.54%. Net insider shares purchased over the last six months at 3.64M, which is 0.17% of the company's 2.14B share float. The stock has gained 20.37% over the last year.
*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.