Looking for stocks practically radiating with optimism? We created a list of stocks that not only have the very bullish backing of company insiders, but also top analyst.
Company insiders, like board members and management, are required to report any buying and selling of company shares. Their purchases in their own firm send bullish signals to outside investors because, after all, who knows a company better than those that run it? When they net purchase significant amounts of shares (with their personal funds) it indicates they believe share price is undervalued and likely to rise.
In regards to top analyst ratings, we screened the stocks with significant insider buying for those with "Buy" ratings from UBS (NYSE:UBS). Investors often find it helpful to have the backup of a large investment bank's analysts.
For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research. Clearly. UBS's outlook differs from the collective.
Click to enlarge
UBS has a buy rating on these 3 insider favorites. Do you agree with this optimism?
1. Assured Guaranty Ltd. (NYSE:AGO): Provides credit enhancement products to the public finance, structured finance, and mortgage markets in the United States and internationally. Market cap at $2.51B, most recent closing price at $12.91. On 05/24/2012, UBS had a Buy rating on the stock. Over the last six months, insiders were net buyers of 2,461,677 shares, which represents about 1.43% of the company's 171.85M share float.
2. Colfax Corporation (NYSE:CFX): Designs, manufactures, and distributes fluid handling products that transfer or control liquids in various applications worldwide. Market cap at $1.42B, most recent closing price at $32.69. On 11/15/2011, UBS had a Buy rating on the stock. Over the last six months, insiders were net buyers of 2,147,640 shares, which represents about 3.26% of the company's 65.94M share float.
3. Stewart Enterprises Inc. (NASDAQ:STEI): Provides funeral and cemetery products and services in the death care industry in the United States and Puerto Rico. Market cap at $633.06M, most recent closing price at $7.30. On 07/03/2012, UBS had a Buy rating on the stock. Over the last six months, insiders were net buyers of 871,700 shares, which represents about 1.36% of the company's 63.90M share float.
Written by Rebecca Lipman. Analyst ratings sourced from Reuters, insider 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. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.