Some Homebuilders Also Do Well Trading Stocks

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Includes: HOV, TOL
by: Bespoke Investment Group

While some may argue that homebuilders don't do a very good job building houses, one thing they know how to do well is trade their own stocks. Some may remember back in 2005, when insiders at TOL sold over $164 million in stock just days before the stock hit its all-time peak. By not holding that stock, these insiders saved themselves nearly $100 million.

Not only are insiders at the homebuilders good sellers, but it appears that they are good buyers too. During the month of January, insiders at Hovnanian (NYSE:HOV), purchased 389,000 shares of stock at an average price of $5.3. Now only six days into February, HOV's stock is trading at $9.8 for an 85% gain. Not bad for less than a month's work.