Insiders Are Bullish About These Stocks Right Now

 |  Includes: ACMP, BBY, DNP, DPM, ED, EQT, HE, KRO, LXK, PNC, VMW
by: Insider Monkey

Corporate insiders have an edge over ordinary investors, especially when it comes to purchasing stocks. Even small insider purchases are marginally profitable. This is not difficult to understand. Insiders often have lots of exposure to their company’s performance. They know what and how their company is doing. They will not increase their holdings unless they believe the purchase is very likely to be profitable. On average, insider purchases outperform the market over the following 12-month period.

Below we compiled a list of large cap stocks that insiders are bullish about right now. All companies have over $2 billion market cap and were purchased by at least one insider over the past week.





VMware, Inc.



PNC Financial Services Group Inc.



Consolidated Edison Inc.



Best Buy Co. Inc.



EQT Corporation



Chesapeake Midstream Partners, L.P.



DNP Select Income Fund Inc.



Lexmark International Inc.



Kronos Worldwide Inc.



Hawaiian Electric Industries Inc.



DCP Midstream Partners LP


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The stock bought by the largest number of insiders during the past week is EQT Corporation EQT. There are three insiders who purchased the stock over the past week. On January 3, James Rohr, Bray Cary and Philip Behrman bought 730 shares, 770 shares and 330 shares respectively, at prices ranging from $53.36 to $54.79 per share. In less than one week, EQT’s price increased by more than $1 to $54.87. These three insiders also bought hundreds of shares of the stock in October, July, April and January last year at prices ranging from $44.84 to $53.56. There are 24 hedge funds with EQT positions in their portfolios at the end of September. For example, Steven Cohen’s SAC Capital Advisors significantly boosted their EQT stake to $45 million during the third quarter.

Insiders are also bullish about VMware Inc VMW. During the past week, VMW was bought by one insider. Its large shareholder EMC Corp purchased 121,500 shares at $82.2229 on January 5, 122,800 shares at $81.3767 on January 4, and another 119,200 shares at $83.8693 on January 3. EMC has been continuously purchasing VMW over the past year. VMW is currently trading at $85 per share. At the end of the third quarter, there are 28 hedge funds that disclosed owning VMW shares in their portfolios. Among them, Jim Simons’ Renaissance Technologies had the largest VMW position. The fund increased its VMW stake by 10% over the third quarter to $67 million.

One large-cap financial stock that insiders love is PNC Financial Services Group Inc PNC, which was bought by one insider over the past week. Helge Wehmeier, director at PNC, bought 320 shares at $59.1372 and another 20 shares at $59.15 on January 3. PNC is trading at $60.01 now. Wehmeier also purchased certain amounts of the stock in July, April and January last year, at prices ranging from $59.95 to $63.83. At the end of the third quarter, there are 26 hedge funds with PNC positions. For example, Ken Fisher’s Fisher Asset Management had nearly $300 million invested in PNC. Ken Griffin, Ric Dillon and Bill Miller are also bullish about the stock. Their funds all had more than $100 million invested in PNC at the end of the third quarter.

Other stocks insiders are buying include Consolidated Edison Inc (NYSE:ED), Best Buy Co Inc (NYSE:BBY), Chesapeake Midstream Partners LP (CHKM), DNP Select Income Fund Inc (NYSE:DNP), Lexmark International Inc (NYSE:LXK), Kronos Worldwide Inc (NYSE:KRO), Hawaiian Electric Industries Inc (NYSE:HE), and DCP Midstream Partners LP (NYSE:DPM). Academic research has shown that investors can beat the market in the long term simply by imitating the insider purchases. This is 100% legal too.

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