Our analysis on the most informative insider transactions reveals that the insiders with a strong historical performance are likely to continue outperforming the market. Some insiders just seem to know exactly when to sell and when to buy their own shares of their own companies. Below four insiders who have consistently outperformed the market by buying and selling shares of Comfort Systems Stock (NYSE:FIX), Charles Schwab Stock (NYSE:SCHW), Simmons First National Corporation (NASDAQ:SFNC), and TripAdvisor Inc. (NASDAQ:TRIP) .
On February 26, Director Franklin Myers purchased $115,760 worth of Comfort Systems. Myers has a knack for timely purchases as evidenced by his five-star rating on TipRanks. At the time he bought the stock, FIX was sitting at $28.66, while today the stock sits at $31.90. Myers’ purchase of Comfort Systems on February 29 has shown a net return to date of 13.97%. Myers has been able to successfully time his purchases of FIX in the past as his average return buying/selling shares of the company is +33.33% with a 75% profitable transaction rate. Comfort Systems is a company that provides heating, ventilation, and air conditioning installation maintenance, repair, and replacement services for businesses and workplaces across the country. The company has been public since June 1997.
Another informative transaction that ranked highly is by director Preston Butcher, who purchased Charles Schwab in a transaction valued at $90,416 on February 26. To date, Butcher’s purchase has netted a strong return of 11.86%. Butcher has had a history of success with insider buying as noted by his five-star rating on TipRanks. Overall, Butcher has a 71% profitable transaction rate and an average return of +27.4% when making insider purchases. Butcher purchased SCHW at $25.46 while the stock currently sits at $28.02. Charles Schwab is a brokerage and banking company based in San Francisco California.
The third stock pick is Simmons First National. On February 26, George Makris purchased $54,610 worth of stock. Makris’ informative buy has netted a return of 10.48% to date. Makris has a 93% profitable transaction rate and an average return of 17.9% when making insider purchases. Makris is ranked 1167 out of 35095 insiders according to TipRanks. Makris currently has a ~$6 million holding in Simmons. Simmons First National Corporation is a financial holding company with a subsidiary national bank. The company provides banking services to individuals and businesses throughout their areas of operation. This move is followed by a strong trend of high ranking insiders at financial firms purchasing stocks in a similar manner to hedge fund currently favoring the sector.
The final stock pick is TripAdvisor. CEO Stephen Kaufer purchased $838,629 worth of stock in late February, according to TipRanks. At the time of purchase, TRIP stood at $62.38 while the stock currently sits at $65.58. Kaufer has an 8.4% average return when making insider purchases of TRIP and has a 100% profitable transaction rate based on the two informative buys he has made within the last two years. Kaufer is ranked #14,869 out of 35,095 insiders. TripAdvisor Inc. is a travel website that provides reviews and ratings of travel-related content, including interactive travel forums. Since its inception in 2012 the stock has peaked at over +250% and is currently trading at +100%.
The chosen picks were highlighted in Daily Insider’s Trading Strategy Issue written on February 29, available for free here. These picks were shared with subscribed investors prior to the market open on that date, you can find more about the strategy and implementation here.