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.
Cracker Barrel Old Country Store CBRL: Sardar Biglari purchased more than 48,000 more shares this week. That was worth more than $2.7 million. The Texas-based activist investor has been periodically buying shares since the beginning of the year. Cracker Barrel has a market capitalization of about $1.4 billion. Its return on equity is 28.3 percent and its dividend yield is about 2.5 percent. Shares are trading near a multiyear high, and the stock has outperformed competitors Denny's DENN and IHOP parent DineEquity DIN over the past six months.
See also: Three Alternatives to Buffalo Wild Wings
ING Groep ING: A director purchased almost 40,000 shares of this Dutch financial services company last week. That was worth more than $2.1 million. The company is in the process of selling off its Asian life insurance business. ING's market cap is near $24.8 billion and it has a long-term EPS growth forecast of 17.8 percent. The P/E ratio is about 13.7 and the PEG ratio near 0.7. The share price has popped about 14% in the past week from near a multiyear low, but the stock has still underperformed Prudential PRU and the broader markets over the past six months.
Navistar International NAV: Activist investor Carl Icahn's hedge fund purchased more than 970,000 shares of this truck and RV manufacturer this past week worth more than $22.3 million. Icahn's stake has risen to more than 14 percent, less than the trigger for the poison pill Navistar has adopted. The company's market cap is about $1.6 billion and its long-term EPS growth forecast is 15.6 percent. Short interest is more than 11 percent of the float. Over the past six months, the stock has underperformed rival Oshkosh OSK, which Icahn also has a stake in.
Opko Health OPK: The chairman continues to periodically buy batches of shares, as he has done since last November. He has bought more than 39,000 shares in the past week, which is worth more than $1.7 million. This Miami-based health care company has a market cap of near $1.2 billion. Short interest is a hefty 22 percent of the float. Shares have fallen more than 6 percent in the past month and are now down nearly 12 percent year to date. Over the past six months, the stock has underperformed competitors such as Allergan AGN and the broader markets.
RadioShack RSH: Last Friday, three directors each bought $20,000 shares, worth about $50,000 each, in this Fort Worth, Tex.-based company. RadioShack posted a surprise loss and suspended its dividend last week. Shares dropped to a new 52-week low. So far, analysts project a narrower loss in the current quarter, on revenue flat year-over-year. The market cap is above $250 million. Short interest is 44 percent of the float. The stock has underperformed competitor Best Buy BBY, as well as the broader markets, over the past six months.
See also: RadioShack Spikes Higher on Insider Buys
Yahoo! YHOO: A pair of directors from this Internet portal company bought up more than 2.5 million shares last week. That was worth over $39 million. Yahoo!'s new CEO, Marissa Mayer, has been on the job about two weeks. The market cap of this S&P 500 component is near $19.5 billion. The company's price-to-earnings P/E ratio is less than the industry average and the operating margin is greater than the industry average. Shares have crept up about 2.5 percent in the past 90 days and are now less than 10 percent below the 52-week high.
See also: Is Yahoo! Paying Marissa Mayer Too Much?
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