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.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.