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Corporate insiders know their companies and industries way better than ordinary investors. They sometimes even have material non-public information and trade on such information, which is not allowed by law. Ordinary investors can benefit simply by imitating the trades of insiders, which is absolutely legal. Insiders who trade on material non-public information may get caught one day and be sent to jail, but investors who follow their investments don’t break any laws. Even though insiders do not act directly on material non-public information, they can still have an edge over others. For example, they can postpone their purchases if they know bad news is to be released soon. That’s why we have been encouraging investors to focus on the investments of corporate insiders.

Below we compiled a list of large cap stocks that insiders are bullish about right now. All companies have over $10 billion market cap and were purchased by at least one insider over the past week.

Ticker

Company

Insiders

ECL

Ecolab Inc.

1

MHP

The McGraw-Hill Companies, Inc.

1

PSA

Public Storage

1

RAI

Reynolds American Inc.

1

VMW

VMware, Inc.

1

VRX

Valeant Pharmaceuticals International, Inc.

1

Ecolab Inc. (ECL): Ecolab provides products and services in hospitality, foodservice, healthcare and industrial markets. ECL was bought by one insider in the past week. Daniel Sanders purchased 5000 shares at $55.1886 on December 13. Last week, Jerry Grundhofer, another director at Ecolab, also purchased 5400 shares at $55.4498. Now the stock is trading at $54.81 per share. It has a market cap of $12.6B and a P/E ratio of 25.4. Boykin Curry’s Eagle Capital Management had $358 million invested in ECL at the end of September.

The McGraw-Hill Companies, Inc. (MHP): McGraw-Hill provides information services. MHP was bought by one insider in the past week. On December 13, Richard Thornburgh bought 5000 shares at $42.8488 per share. Now the stock is trading at $42.74 per share. It has a market cap of $12.5B and a P/E ratio of 15.28. Barry Rosenstein’s JANA Partners invested $400+ million in MHP.

Public Storage (PSA): Public Storage is a real estate investment trust. PSA was bought by one insider in the past week. Uri Harkham bought 1000 shares at $129.8 on December 9. Now the stock is trading at $128.83 per share. It has a market cap of $21.7B and a P/E ratio of 41.8. Ken Heebner is bullish about PSA. His Capital Growth Management had $87 million invested in this stock at the end of the third quarter.

Reynolds American Inc. (RAI): Reynolds manufactures smokeless tobacco products and cigarettes. RAI was bought by one insider in the past week. Richard Thornburgh bought 5000 shares at $40.9384 on December 13. Now the stock is trading at $40.46 per share. It has a market cap of $23.9B and a P/E ratio of 18.01. Jim Simons’ Renaissance Technologies also had $50+ million invested in RAI at the end of September.

VMware, Inc. (VMW): VMware provides virtualization solutions from the desktop to the data center. VMW was bought by one insider in the past week. As the largest shareholder of VMware, EMC Corp bought 71700 shares at $85.5721 on December 15. EMC also purchased 68100 shares at $87.8309 on December 14, 32000 shares at $93.5591 on December 13, and 31800 shares at $93.7973 on December 12. Now the stock is trading at $85.98 per share. It has a market cap of $35.9B and a P/E ratio of 56.75. Jim Simons is bullish about VMW as well. His Renaissance Technologies disclosed owning $67 million of the stock as of September 30.

Valeant Pharmaceuticals International, Inc. (VRX): Valeant Pharmaceuticals is a multinational pharmaceutical company. VRX was bought by one insider in the past week. Bradley Howard Schiller purchased 11000 shares at $45.5096 on December 8. Schiller also bought 43500 shares in total on December 1, 2, and 5 at prices ranging from $46.05 to $46.82. Now the stock is trading at $45.07 per share. It has a market cap of $13.4B and a P/E ratio of 213.62. Andreas Halvorsen’s Viking Global invested $300+ million in VRX shares.

Source: 6 Stocks That Insiders Are Bullish About Right Now