These past few months, the market has been on a quite a roll. Just since August, the S&P has rallied more than 100 points. But while investor enthusiasm shows no signs of waning, corporate management teams don't appear to be buying into it.
An overwhelming majority of insiders have instead jumped at the chance to dump their shares at a premium. The blog Zero Hedge tallied up this week's insider trading numbers, and found that there has been $2,341 of insider selling for every dollar of insider buying.
Remember, management insiders know a lot more than we do about a company's financial prospects, so it's quite possible that their eagerness to sell the recent rally signals trouble ahead.
But what about the management teams that continue to buy up the stock of their own companies while everyone else is selling the rally?
Given this dreary climate for insider trading, any bullishness on their part probably has some substance to back it up -- why else would they continue to buy?
To help you find ideas, we've crunched the numbers on stocks that have reached recent highs on insider buying.
Usually, by the time a stock hits a new high, most of the good news surrounding the company has already been priced in. But when company insiders continue to buy up a stock that is trending up, you may want to reconsider, because the best may very well be yet to come.
Here is a list of stocks reaching new 52-week highs with insider buying. Data sourced from Marketwatch. (Click here to access free interactive tools to analyze these ideas.)
|Company||Insider Transaction||Annual Performance|
|Akorn (Nasdaq: AKRX )||Kenneth Abramowitz (Director) bought $15,466 worth of stock on August 16.||
|Sauer Danfoss (NYSE: SHS )||Jesper Christensen (Chief Financial Officer) and Sven Ruder (President and CEO) collectively bought $125,800 worth of stock on September 9.||
|Exact Sciences (Nasdaq: EXAS )||Insiders like Maneesh Arora (Chief Financial Officer), Lionel Sterling (Director), Daniel Levangie (Director) and Kevin Conroy (President and CEO) collectively bought $280,380 worth of stock during August.||
|HEICO (NYSE: HEI )||Frank Schwitter (Director) bought $71,344 worth of stock on September 22.||
|Amtrust Financial Services (Nasdaq: AFSI )||Donald DeCarlo (Director) bought $69,650 worth of stock on August 6.||
|CLECO (NYSE: CNL )||Richard Crowell (Director) bought $150,750 worth of stock between August 20-25.||
|Constellation Brands (NYSE: STZ )||Jeremy Fowden (Director) bought $20,825 worth of stock on August 31.||
Interactive Chart: Press Play to see how CEO compensation has changed for all the companies mentioned above.
Kapitall's Eben Esterhuizen and Alicia Sellitti don't own shares of any companies mentioned.