A choppy year for commodities has made for some sizable insider buying opportunities. Only time will tell whether these bets will pay off, but they are certainly worth noting. Here are four stocks the insiders are buying right now. (To learn more, see Delving Into Insider Investments.)

IN PICTURES: 9 Simple Investing Ratios You Need To Know

A Million Dollar Bet


On August 19, a director at CME Group (Nasdaq: CME) picked up $1.2 million worth of company stock at $245 per share. This transaction has "value play" written all over it. Year-to-date shares of CME are down 29.3%.

This has not been the only big insider bet on CME Group. Just a week earlier, the company's executive chairman picked up a little over $250,000 worth of this stock at $250.32 per share. CME Group is coming off a Q2 that demonstrated double-digit top line and bottom line growth. The sell-off that this stock has seen this summer may be a bit overdone.

Banker Buying

Shareholders of Bank of America (NYSE: BAC) have had a tough summer of their own. The stock has surrendered 19.5% of its value in just the last three months. This pullback set up a buying opportunity for one of the company's directors who purchased $131,000 worth of BAC stock August 19 at $13.10 per share.

The bank is currently shifting its focus back to its core business lines. It has sold its equity position in MasterCard (NYSE: MA) and is now considering paring back its position in BlackRock (NYSE: BLK).

Well-Oiled Machines

On August 18, a director for Exxon Mobil (NYSE: XOM) purchased just under $600,000 worth of Exxon stock. The transaction transpired at $59.86 per share. Shares of this stock are presently trading 13.6% below where they started the year.

Exxon Mobil is coming off a Q2 in which its EPS nearly doubled as the company benefited from higher crude prices. The company's management team also apparently believes that its stock price is reasonably valued. In Q2, Exxon Mobil repurchased more than $1 billion worth of its own common stock.

Another oil and gas giant that saw insider buying August 18 was Devon Energy (NYSE: DVN). A director for Devon Energy bought more than $630,000 worth of DVN shares at $63.24 per share. Shares of this stock are down 15.5% so far this year.

The Bottom Line

Each of these insider transactions represents a substantial bet on the underlying company. The purchases also serve as a vote of confidence for stocks that have struggled to move up the charts as of late. Investors can utilize this insider buying activity as an initial screen before conducting their own research on the potential purchase of any of these stocks.

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!



Filed Under:
Tickers in this Article: CME, BAC, MA, BLK, XOM, DVN

comments powered by Disqus

Trading Center