11 Financial Stocks Insiders Bought Last Month

 |  Includes: BLK, BOH, CIM, DNP, ETFC, MFA, OZM, PNC, PSA, WFC, Y
by: Insider Monkey

Academic research has shown that corporate insiders have an edge over ordinary investors, especially when it comes to purchasing stocks. This is not hard to understand. Insiders usually have large exposures to their companies' performance. They will only increase their stock holdings when they believe that their purchases have a high probability of being profitable.

Below we compiled a list of financial stocks insiders are bullish about. All companies have market caps of at least $2 billion and were purchased by at least one insider during the past month. The market data is sourced from Finviz.





Wells Fargo & Company



BlackRock, Inc.



PNC Financial Services Group Inc.



Public Storage



Och-Ziff Capital Management Group LLC



Chimera Investment Corporation



DNP Select Income Fund Inc.



E*TRADE Financial Corporation



Alleghany Corp.



MFA Financial, Inc.



Bank of Hawaii Corporation


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Och-Ziff Capital Management Group LLC was bought by four corporate insiders over the past month. The most recent purchase occurred on December 20th, when director David Windreich purchased nearly 300000 shares at $8.3754. Windreich also bought over 40000 shares at $7.8565 on December 19th and another 64652 shares at $7.9284 on December 16th. Barry Griswell, Michael Cohen and Daniel Och also purchased 20000, 6920, and 273979 shares respectively in mid-December at about $7.8 per share. Today, OZM is trading at $9.15 per share, up about 15% from the prices at which these four insiders purchased. Billionaire Jim Simons is also bullish about OZM. His Renaissance Technologies increased its OZM stakes by 53% to $7.4 million over the third quarter.

One mega-cap financial stock that insiders bought is Wells Fargo & Company. The stock was bought by one insider during the past month. On December 28th, John Baker purchased 662 shares of WFC at $27.2599, 66 shares at $27.26, and another 248 shares at $27.2999. WFC's price has increased by $2 to $29.61 per share. The stock has a market cap of $156B and a relatively low P/E ratio of 10.97. WFC is a popular stock among hedge funds as well. There are 69 hedge funds disclosed to own WFC in their 13F portfolios at the end of the third quarter. For instance, Warren Buffett's Berkshire Hathaway had $8.7 billion invested in WFC. John Paulson, Lee Ainslie, and Ken Fisher are also in favor of the stock. These funds made 23.42% from their WFC positions since the end of September.

Corporate insiders are also bullish about BlackRock, PNC Financial Services Group and Public Storage. On average, insider purchases outperform the market over the following 12-month period. We encourage investors to focus on the stocks that corporate insiders are buying. We believe that investors will be more likely to beat the market by imitating the insiders.

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