3 Stocks Insiders Are Buying Like Crazy

Insider Monkey has been regularly publishing articles about the stocks insiders buy like crazy since the beginning of December. The stocks we highlighted in those 6 articles have performed spectacularly compared to the S&P 500. Insiders know more about their companies than do most investors. This is especially true in smaller companies which are only followed by a few analysts, if any at all. Academic studies conducted during the past 40 years confirm this. Stocks bought by several insiders outperformed the S&P 500 index funds by about 7 percentage points per year in those studies. Last week, we brought 5 companies insiders are buying to your attention. Here are their performance numbers since we highlighted them:

1. Winmark Corp (WINA): This is the only stock that underperformed last week. Winmark returned only 0.5%.

2. Trailer Bridge Inc (TRBR): Trailer Bridge was last week’s best performer; it returned 19% vs. 1.7% for the S&P 500 index.

3. Cogent Communications Group Inc (CCOI): There have been recent insider purchases at Cogent Communications around $14 per share. On January 7th the stock closed at $13.74- less than what the insiders paid for it. After we highlighted this stock, it returned 10.4%. (more)