What are the insiders buying?
When company executives start buying their own stock, it can mean there's money to be made.
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. Here are some stocks that have seen insider buying recently.
Adobe Systems (ADBE): One director purchased 5,000 shares of this diversified software company in the past week, worth more than $190,000. Last week, Adobe pulled back after hitting a 52-week high, and it was a Zack's Bear of the Day.
It has a market capitalization of about $18.8 billion. Its price-to-earnings (P/E) ratio is less than the industry average and the long-term earnings per share (EPS) growth forecast is almost 12%. Shares are up about 19% from six months ago, and the stock has outperformed Microsoft (MSFT) and Oracle (ORCL) in that time. (Microsoft owns and publishes Top Stocks, an MSN Money site.)
Darden Restaurants (DRI): This past week, a director purchased 11,000 shares, worth more than $494,000. The market cap of this operator of Red Lobster, Olive Garden and other chains is about $5.9 billion, and its dividend yield is about 4.4%. The long-term EPS growth forecast is about 1%, and the return on equity is more than 25%. Shares have dropped more than 15% in the past 90 days and are less than 2% lower than a year ago. The stock has underperformed Brinker International (EAT) and DineEquity (DIN) over the past six months.
DaVita (DVA): So far this month, Warren Buffett's Berkshire Hathaway (BRK.A), a beneficial owner, has purchased more than 409,000 shares, worth almost $87 million, in this Denver health care company. Its market cap is about $10.8 billion. The long-term EPS growth forecast is about 13% and the return on equity is more than 23%. The share price is once again approaching the multi-year high hit in November, boosted by recent news of the company's expansion. DaVita has outperformed competitor HealthSouth (HLS) over the past six months.
NuStar Energy (NS): A director recently bought 3,000 shares, which was worth more than $127,000. This San Antonio company stores and transports petroleum products worldwide, but it recently sold a refinery in its hometown. It has a market cap near $4 billion and a distribution yield of more than 8%. But the long-term EPS growth forecast is only about 6%, and the return on equity is in the red. The stock has been on a roller coaster, plunging more than 17% in November and surging more than 14% in January. Over the past six months, the stock has underperformed the likes of Plains All American Pipeline (PAA).
Opko Health (OPK): The chairman continues to periodically buy batches of shares, as he has done for more than a year. He bought 276,000 shares so far this month, which is worth more than $1.45 million. This Miami-based health care company has a market cap near $1.8 billion. Short interest is a hefty 22 percent of the float. Shares have jumped about 21 percent year to date, partly on news of recent acquisitions and an expanded collaboration. Because of the spike to a new 52-week high, the stock has outperformed competitors such as Allergan (AGN) over the past six months.
More from Benzinga
MORE ON MSN MONEY
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.
The auto parts giant beats Wall Street expectations, while continuing to expand its stores in the U.S. and Mexico.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.