15 Healthcare Stocks Insiders Bought Recently

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Includes: ANTM, BSX, CELG, DNDN, EW, IDXX, ILMN, INCY, MRK, PRGO, SHPG, SIRO, SYK, TECH, UTHR
by: Insider Monkey

Academic research has shown that corporate insiders have an edge over ordinary investors. Insiders generally understand their companies much better than other investors and they sometimes even have material non-public information. Insider trading on such information is illegal, but there are still some insiders trading illegally on the information. Ordinary investors can also benefit from such information simply by imitating the insiders. These insiders may be sent to prison one day, but investors following them will be free.

Below we compiled a list of healthcare stocks that insiders are bullish about recently. All companies have at least $2 billion market cap and were purchased by at least one insider in the past three months. The market data is sourced from Finviz.

Ticker

Company

Insiders

AGP

AMERIGROUP Corporation

1

EW

Edwards Lifesciences Corp.

1

IDXX

IDEXX Laboratories, Inc.

1

ILMN

Illumina Inc.

1

PRGO

Perrigo Co.

1

SYK

Stryker Corp.

1

TECH

Techne Corp.

1

UTHR

United Therapeutics Corporation

1

CBST

Cubist Pharmaceuticals Inc.

2

DNDN

Dendreon Corp.

2

VPHM

ViroPharma Inc.

2

BSX

Boston Scientific Corporation

3

CELG

Celgene Corporation

3

INCY

Incyte Corporation

3

SIRO

Sirona Dental Systems Inc.

4

Click to enlarge

Incyte Corporation was purchased by three insiders over the past month. Paul Brooke, director at Incyte, bought 25000 shares at $17.53 on January 18 and another 25000 shares at $17.86 per share on January 19th. 14159 Capital LLC also purchased thousands of INCY shares at around $16.5 per share in mid January. Baker Brothers Life Sciences Capital LLC also purchased a large amount of INCY at about $16.5 per share in January. Baker and 14159 Capital also made purchases at about $13.5 in December. INCY is now trading at $18.45 per share. Incyte is a drug discovery and development company. It focuses on developing small molecule drugs to treat serious unmet medical needs. At the end of September, Steven Cohen's SAC Capital Advisors had $19.4 million invested in this stock, up 10% from the end of June.

Celgene Corporation was also purchased by three insiders during the past three months. On December 5th, Ernest Mario bought 1000 shares at $61.4 and another 1000 shares at $61.3. Mario also bought 2000 shares at $63 on November 2nd. Another director Rodman Drake also purchased 500 shares at $64.6912 at the end of October, and the CFO of Celgene, Jacqualyn Fouse, bought 1000 shares at $63.9154 on November 1. CELG is now trading at $73.26 per share, up about $10 from the prices at which these insiders purchased. As of September 30, 2011, there are 25 hedge funds reported to own CELG. For example, Bill Miller's Legg Mason Capital Management had $154 million invested in this biopharmaceutical company.

Another large-cap healthcare stock that insiders are bullish about is Stryker Corp . On November 21st, one insider purchased 1000 shares of SYK at $47.01 per share. Now SYK is trading at $54.97 per share. It has a market cap of $21B and a P/E ratio of 17.48. Stryker is a medical technology company. It reported net income of $401 million for the fourth quarter of 2011, up from $295 million for the same period of 2010. At the end of September, there are 23 hedge funds disclosed owning SYK in their portfolios. For example, Steven Cohen's SAC Capital Advisors invested $33 million in SYK. Jim Simons is also bullish about SYK. His Renaissance Technologies reported to own $11 million worth of SYK shares.

We track corporate insiders because we believe that investors can outperform the market by following them. In fact, our past studies have shown that insider purchases on average beat the market in the following 12-month period. We urge investors to do some in-depth research on the stocks that insiders are buying recently.

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