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Corporate insiders have an edge over ordinary investors because they have access to material non-public information. Trading on such information is not allowed by law, but insiders are still able to benefit from the information by acting within the boundaries of the law. For example, if they know bad news is going to be released to the public, they will postpone their purchases while ordinary investors will not. Even if they do not have material non-public information, they know their companies and the industries way better than other investors.

In this article we will focus on the utilities stocks insiders are bullish about. All companies have at least $2 billion market cap and were purchased by at least one insider during the past month. Market data sourced from Finviz.

Ticker

Company

Insiders

D

Dominion Resources, Inc.

1

POM

Pepco Holdings, Inc.

1

SCG

SCANA Corp.

1

NRGY

Inergy, L.P.

2

UGI

UGI Corp.

2

Dominion Resources, Inc. (NYSE:D): Dominion Resources produces and transports energy. D was purchased by one insider in the past month. William Barr purchased nearly 1000 shares at $51.0332 on December 5. Now the stock is trading at $51.82 per share. It has a market cap of $28.7B and a P/E ratio of 19.22. Phil Gross and Robert Atchinson’s Adage Capital Management invested $40+ million in D shares.

Pepco Holdings, Inc. (NYSE:POM): Pepco is engaged in the transmission, distribution and supply of electricity and natural gas. POM was purchased by one insider in the past month. On November 16, Barbara Krumsiek purchased 4000 shares at $19.141. Now the stock is trading at $19.54 per share. It has a market cap of $4.4B and a P/E ratio of 17.41. Jim Simons’ Renaissance Technologies invested $11 million in POM shares at the end of September.

SCANA Corp. (NYSE:SCG): SCANA generates, transmits and distributes electricity in South Carolina, and purchases, transmits and sells natural gas in North Carolina and South Carolina. SCG was purchased by one insider in the past month. James Roquemore bought 1000 shares at $42.0061 on November 21. Now the stock is trading at $43.26 per share. It has a market cap of $5.5B and a P/E ratio of 14.31. Louis Bacon’s Moore Global Investments initiated a brand new $20 million of SCG during the third quarter.

Inergy, L.P. (NRGY): Inergy owns and operates retail and wholesale propane supply, marketing and distribution business, as well as a growing midstream business that includes four natural gas storage facilities. NRGY was purchased by two insiders in the past month. William Gautreaux continuously bought the stock during the past month. In December, Gautreaux bought 20000 shares at $22.8124 on December 13 and another 10000 shares at $23.65 on December 7. Gautreaux also bought 45000 shares in total at around $23.5 per share in late November. John Sherman also bought 10000 shares at $23.325 on November 17. Now the stock is trading at $24.49 per share. It has a market cap of $3.2B and a P/E ratio of 87.14. Jim Simons bought $8.7 million worth of new NRGY stocks in the third quarter.

UGI Corp. (NYSE:UGI): UGI is engaged in the distribution and marketing of energy products and related services. UGI was purchased by two insiders in the past month. On Decmeber 12, Robert Beard purchased 500 shares at $28.18. Frank Hermance also bought 30000 shares at $29.4 on November 16. Now the stock is trading at $28.78 per share. It has a market cap of $3.2B and a P/E ratio of 13.48. Chuck Royce's Royce & Associates had $18 million invested in UGI as of September 30.

Source: 5 Utilities Stocks Insiders Are Bullish About