At TipRanks we track four different types of financial expert- including 37,000 corporate insiders. This means that we can find out about the most recent corporate insider transactions from insiders with the best track record of success- and from that find the most compelling insider stocks to follow.
Crucially, we differentiate between two types of insider transaction informative and uninformative. Across all TipRanks’ insider tools you can filter out uninformative transactions which indicate that an insider is buying/selling shares for mostly insignificant reasons such as exercising expiring options. If an insider deliberately makes a transaction it is counted as an informative transaction- and can be a significant insight into how that insider thinks the stock will perform.
We used two specific tools to find insider stocks: Daily Insider Transactions and Insider’s Hot Stocks. As the name suggests, the Daily Insider Transactions tool displays all the most recent insider transactions. You can filter the transactions to find only the stocks that best match your investing strategy- and filter our poor-performing insiders. In this case, we selected the following options, and searched across all sectors:
The result of the search revealed these three stocks including Kite Pharma (KITE)- a company dedicated to treating cancer:
All three stocks have recent transactions worth millions of dollars from 4-5 star corporate insiders. For example, on May 9, David Bonderman bought $3.45 million shares worth of Kite Pharma stock bringing his total holding of KITE shares to $189 million. Bonderman- who has a very impressive average return of 25% per transactions- has holdings in a few different stocks that total $1 billion.
We can click on the stock ticker to see the market consensus on each of these stocks. If we go to Kite Pharma’s stock analysis page we can see that is has a Moderate Buy analyst consensus rating, but if we scan down the ratings we can see that five-star analyst Eric Schmidt from Cowen & Co published a Buy rating on KITE on May 8.
