What Insiders Are Buying
We like to track insider purchases because insiders are generally best served by diversifying their investments away from the same company. Buying the stock should signify particularly strong confidence in its prospects, and it is certainly a better indicator of insider optimism than predictions on a conference call. Market players can't buy every stock that has seen insider activity, but the set of stocks that insiders have bought recently can serve as a good starting point for further research. Here are some stocks that have had insider purchases recently, according to Insider Monkey's database of insider transactions.
William Swanson, CEO of Raytheon (RTN) and a board member at NextEra Energy (NEE), bought about 7,200 NextEra shares on Oct. 26 at an average price of $69.53 per share. NextEra, a $30 billion market-cap electric utility, pays a dividend yield of 3.5% (generally below the yield at other large-cap electric utilities). In the first nine months of 2012, the company experienced a modest decline in revenue relative to the same period in 2011 but earnings were up 18%. So far this year, $6.5 billion in cash has been used in investing activities, about twice NextEra's cash flow from operations. At a trailing price-to-earnings multiple of 14, it may offer an attractive combination of value and income....423 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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