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Compared with ordinary investors, corporate insiders understand their companies and their industries way better. That’s why they generally have an edge over other investors. Furthermore, insiders sometimes have material non-public information and may trade on such information. This is illegal and insiders who trade on illegal information may go to jail one day. However, ordinary investors can benefit by imitating insiders and they will remain free.

In this article, we are going to focus on the financial stocks that insiders are bullish about recently. All companies have at least $3 billion market cap and were purchased by at least one insider in the past month. The market data is sourced from Finviz.

Ticker

Company

Insiders

BLK

BlackRock, Inc.

1

BK

The Bank of New York Mellon

1

PSA

Public Storage

1

SCHW

The Charles Schwab Corporation

1

FITB

Fifth Third Bancorp

1

PFG

Principal Financial Group Inc.

1

RJF

Raymond James Financial Inc.

5

OZM

Och-Ziff Capital Management Group LLC

4

BlackRock, Inc.: BlackRock is one of the best asset management firms in the world. BlackRock was purchased by one insider during the past month. Bank of America (NYSE:BAC) continuously bought BlackRock during the past few months. The most recent purchase occurred on December 6, when Bank of America bought 105 shares in total at around $174 per share. Over the past month, Bank of America purchased 2238 shares in total at prices ranging from $156.31 to $174.19. Now BlackRock is trading at $177.94, more than $3 higher than the highest price Bank of America paid. Billionaire John Paulson also had $146 million invested in BlackRock.

The Bank of New York Mellon Corporation: BNY Mellon is a global financial services company. One insider bought BNY Mellon over the past month. On November 23, Richard Brueckner purchased 25000 shares of BNY Mellon at $17.8883. In one month, BNY Mellon’s price increased by more than $2. Now it is trading at $20.05. Jean-Marie Eveillard’s First Eagle Investment Management had $369 million invested in BNY Mellon at the end of September.

Public Storage: Public Storage is a real estate investment trust. Uri Harkham bought 1000 shares at $129.8 on December 9. Now the stock is trading at $134.45 per share. Harkham also purchased 1000 shares of the stock in August. On August 17, he bought the stock at $117.54 per share. The stock was once traded at over $130 in late October and November. Ken Heebner’s Capital Growth Management invested $87 million in this stock at the end of the third quarter.

The Charles Schwab Corporation: Charles Schwab is a savings and loan holding company. Over the past month, one insider bought the stock. Roger Walther bought 1500 shares at $11.098 on November 29. The stock is currently trading at $11.48 per share, slightly higher than the price Walther purchased at. Walther also bought 2650 shares at $15.3 in November last year. The stock’s price increased to over $17 per share in December last year. During the third quarter, Curtis Macnguyen’s Ivory Capital initiated a brand new $84 million investment in Charles Schwab.

Fifth Third Bancorp: Fifth Third Bancorp is a diversified financial services company. One insider purchased the stock during the past month. On November 23, John Schiff purchased 12000 shares at $11.127. After one month, Fifth Third’s price increased $1.8 per share to $12.96. Two years ago, Schiff also bought more than 20000 shares of Fifth Third at around $6.97 per share. The stock’s price continuously increased to around $11 per share in three months. Ken Griffin’s Citadel Investment Group invested $134 million in Fifth Third at the end of September.

Other financial stocks insiders are buying during the past month include Principal Financial Group Inc, Raymond James Financial Inc, and Och-Ziff Capital Management Group LLC. It seems that insiders do know when is the right time to purchase the stocks of their companies as most of these stocks are trading at higher prices now. We believe that by following the investments of corporate insiders, investors will be more likely to outperform the market in the long term.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 8 Financial Stocks Insiders Are Buying