Wish you could get an inside peek at a particular company? One way is to analyze a company's insider buying, or the number of company shares purchased by its insiders such as members of the board and upper management.
To illustrate this, we ran a screen on the retail industry for stocks seeing the most significant net insider purchases over the last six months, indicating insiders at these companies are bullish on their employer's prospects.
Interactive Chart: Press Play to compare changes in market cap over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.
We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.
Do you think these stocks will outperform like their insiders expect? Use this list as a starting point for your own analysis.
1. American Eagle Outfitters, Inc. (AEO): Operates as an apparel and accessories retailer in the United States and Canada. Over the last six months, insiders were net buyers of 1,134,490 shares, which represents about 0.68% of the company's 167.40M share float.
2. Carter's, Inc. (CRI): Designs, sources, and markets branded children's wear. Over the last six months, insiders were net buyers of 1,110,366 shares, which represents about 2.24% of the company's 49.59M share float.
3. Saks Incorporated (SKS): Operates fashion retail stores in the United States. Over the last six months, insiders were net buyers of 886,717 shares, which represents about 0.87% of the company's 101.55M share float.
*Insiders data sourced from Yahoo! Finance, all other data sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.