Since the recent market sell-off, insider buying is higher than ever, especially among CEOs. According to the founder of Insider Trade Reports, Asif Suria, a typical week sees between $20-60 million of insider purchases, but last week saw more than $185 million in purchases from insiders.
Insider Trade Reports claims "over four decades of academic research has shown that by following in the footsteps of company insiders and buying the stocks that they are buying, you can outperform the market by 6% to 10.2% per year."
For a look into companies being bought up by their CEOs, here is a list of CEO insider purchases since the market downturn. Do you think these CEOs are calling it right?
Use this list as a starting-off point for your own analysis. (Click here to access free, interactive tools to analyze these ideas.)
1. Six Flags Entertainment
2. Morgan Stanley
3. Fifth Street Finance
4. Huntsman
5. WMS Industries
6. General Growth Properties
7. Kinder Morgan
8. First Industrial Realty Trust
9. Winthrop Realty Trust
10. Tupperware Brands
11. Life Technologies
12. Greenbrier Companies
13. Kansas City Southern
14. AK Steel Holding
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.
Disclosure: Kapitall's Alexander Crawford does not own any of the shares mentioned above. Insider trading data sourced from Insider Trade Reports, all other data sourced from Finviz.