7 Stocks Insiders Are Buying Like Crazy

Academic studies have shown that insider trading is most profitable when several insiders buy around the same time. A study by University of Illinois professor Josef Lakonishok and his student Inmoo Lee shows that insider purchases generate more than 7%/year in excess returns above index funds when there are several insiders purchasing. Insider Monkey, your source for free insider trading data, compiled the list of companies with at least three insiders buying with the latest purchase made in late November.

Here are the seven stocks insiders are buying like crazy:

1. Bank of America (BAC): We reported significant insider trading in Bank of America three weeks ago. On Wednesday, a fourth director purchased 5,000 shares at $11.30. This is nearly 10% less than the price paid by previous insiders. We weren’t enthusiastic about the previous purchases, but we believe this is a better point to monkey insider buys.
2. Versar Inc. (VSR): This is a $30 million company with several insider purchases over the past 3 months. The prices paid were as low as $2.60 per share at the end of September and as high as $3.25 on Wednesday. The daily transaction volume is less than 50,000 shares, so it doesn’t seem to be a good stock to monkey. (more)