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Five Stocks Insiders Are Buying in 2011

NEW YORK ( InsiderMonkey) -- Academic studies have shown that insider trading is most profitable when several insiders buy around the same time. A study by University of Illinois professor Josef Lakonishok and his student Inmoo Lee shows that insider purchases generate more than 7% a year in excess returns above index funds when there are several insiders purchasing.

Insider Monkey recently let you know about one company with insider purchases. Hercules Technology Growth Capital (HTGC - Get Report) closed at $10.36 the Friday before we reported the insider purchase. During the past week the stock increased by 4.3% beating the S&P 500 , which increased by 1.1%. This is the fifth week in a row our list of insider purchases has beaten the S&P 500. Seventeen of the 22 stocks that made our list managed to beat the index.

Insider Monkey compiled a list of companies with at least three insiders buying with the latest purchase made in late November. Here are the most recent stocks insiders are buying like crazy:

Winmark (WINA - Get Report) insiders have been since Dec. 22. The stock closed at $33.16 last Friday.

Trailer Bridge (TRBR) have been both buying and selling around $3. Douglas E. Schimmel purchased 30,000 shares at $2.91 on Thursday. The stock closed at $2.94 on Friday.

There have been recent insider purchases of Cogent Communications (CCOI - Get Report) around $14 a share. The stock closed at $13.74 on Friday, less than what the insiders paid for it.

Diamond Foods (DMND - Get Report) had significant insider purchases three months ago when it was trading around $41. More recently, Diamond Foods' Chairman and CEO Michael Mendes purchased additional shares below $52. On Friday, the stock closed at $52.30.

There have been recent insider purchases in EQT (EQT - Get Report). The largest transaction was two months ago at $38.38; recent transactions occurred below $45. On Friday, the stock closed at $45.62.

>To see these stocks in action, visit the 5 Stocks Insiders Are Buying portfolio on Stockpickr.

This article was originally published at Insider Monkey.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

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SYM TRADE IT LAST %CHG
CCOI $33.89 0.00%
DMND $31.04 0.00%
EQT $87.38 0.00%
HTGC $13.85 0.00%
WINA $89.36 0.00%

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