Insiders may sell shares for any number of reasons, but there is
really only one reason insiders buy shares of a company -- they
believe the stock price will move higher and they want to profit
from it. Pullbacks and sell-offs provide a perfect opportunity for
investors who have faith in a company to snap up shares. Below are
some stocks that have seen insider buying recently:
Cheesecake Factory (NASDAQ:
): A director purchased 25,000 shares of this restaurant operator
last week. That was worth more than $820,000. The company has a
market capitalization near $1.4 billion and a long-term earnings
per share (
) growth forecast of 14.3 percent. Its dividend yield is 1.4
percent. Shares are trading near the 52-week high, and the stock
has outperformed competitor Darden Restaurants (NYSE:
) and the S&P 500 over the past year.
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E*TRADE Financial (NASDAQ:
): Chairman Frank Petrilli and one other director purchased more
than more than 126,000 shares of this financial services company
last week. That was worth more than $1 million. The board of this
New York-based company recently ousted the CEO. The company's
market cap is about $2.4 billion and its long-term EPS growth
forecast is 12.2 percent. Short interest is less than 2 percent of
the float. Over the past six months, the stock has underperformed
rival TD Ameritrade (NYSE:
) as well as the broader markets.
): A pair of directors from this Lafayette, Louisiana-based lender
have bought up more than 22,000 shares, worth over $951,000, so far
this month. The regional bank has a market cap near $1.4 billion.
The company's price-to-earnings P/E ratio is greater than the
industry average and the dividend yield is about 2.9 percent. The
share price has risen about 5 percent in the past two weeks, but
that is still down about 6 percent year to date.
): A 13(d)(3) group owner purchased more than 299,000 more shares
in the past week for more than $6.2 million. This owner has
purchased more than a million shares since July 9. This leading
entertainment technology company has a market cap of about $1.4
billion. Its long-term EPS growth forecast is a healthy 21.3
percent. But the share price has dropped more than 14 percent in
the past month, and the stock has underperformed the broader
markets during that time.
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Opko Health (NYSE:
): The chairman, Dr. Frost, continues to periodically buy batches
of shares, as he has done since last November. He acquired more
than 200,000 shares in the past week, which was worth more than
$862,000. This Miami-based health care company has a market cap of
near $1.2 billion. Short interest is a hefty 23 percent of the
float. Shares have fallen more than 7 percent in the past month and
are now down more than 12 percent year-to-date. Over the past six
months, the stock has underperformed competitors such as Allergan
Ruby Tuesday (NYSE:
): So far in August, two directors have bought 497,000 shares,
worth about $3.2 million, in this operator of casual dining
restaurants. The company appointed two new board members last week.
The market cap is around $430 million. Short interest is more than
7 percent of the float. The share price dropped in July following a
disappoint earnings report, but it has risen almost 5 percent in
the past week. The stock has underperformed competitor Red Robin
Gourmet Burgers (NASDAQ:
) over the past six months.
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