Insider buying can be a bullish indicator for a stock and provides another piece of information for investors to weigh when doing investment research. Company executives, board members, and shareholders with stakes exceeding 10% must notify the SEC within two days of their share purchases (and sales) in a Form 4 filing. Each week, I take a look at some of the largest insider purchases in search of opportunities with this often positive indicator.


Market Cap

Number of Shares Purchased

$Value Shares Purchased

CAPS Rating (out of 5)

KKR Financial Holdings


$1.42 billion 1,100,000 $9.99 million ***
Vantage Drilling (AMEX: VTG) $636 million 5,026,500 $9.54 million ***


(Nasdaq: PHII)

$326 million 200,000 $3.60 million *****
Scientific Games (Nasdaq: SGMS) $880 million 201,640 $1.89 million **

Sources: Barron's; Motley Fool CAPS.

Hedge fund manager and Goldman Sachs alum Leon Cooperman bought shares of KKR Financial Holdings for investment entities and managed accounts that he oversees. He purchased the shares at $9.09 each, 78% higher than the stock's 52-week low. KKR Financial invests in debt securities, natural resources, and real estate, among other things, and yields 5.3%. 

Vantage Drilling board member Su Hsin-Chi bought shares at a weighted average price of $2.07. Shares of the offshore oil and natural gas driller have had pops and drops in recent trading sessions.

Keeping with the offshore drilling theme, PHI drew buying from its CEO, Al Gonsoulin. The company provides helicopter services to offshore drilling companies, flying employees and equipment to and from offshore platforms. The purchase boosted the CEO's ownership stake in the company by more than 13%.

Two board members from Scientific Games purchased shares of the company, joining other directors and officers who have been buying this month. Shares of the company, which provides systems and services to support lotteries and sports betting, have risen nearly 20% since the beginning of December. 

While Fools should always do their own due diligence, and not blindly follow the insiders, insider buying can point to good places to look for opportunities. To learn more about the stocks The Motley Fool is buying, click here to download a free report, "5 Stocks The Motley Fool Owns-- And You Should Too."  

Fool contributor April Taylor does not own shares of the companies mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.