The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (
) -- Corporate insiders have material non-public information about their companies. Trading on such information is illegal and some insiders were investigated and caught, but there are still other insiders trading in the gray area.
Even when insiders do not act directly on material non-public information, they are still able to benefit from it. They can delay their purchases when they know negative news is going to be released, and vice versa.
Sometimes insiders do not have material non-public information, but they still have an edge over ordinary investors: they know their companies and their industries way better than ordinary investors. That's why we have been encouraging investors to focus on the investments of insiders.
Below we compiled a list of industrial goods stocks insiders are bullish about. All companies have at least $10 billion market cap and were purchased by at least one insider during the past three months. The market data is sourced from Finviz.
(BA - Get Report)
: Boeing is an aerospace company. BA was bought by one insider during the past three months. On Nov. 3, Lawrence Kellner bought 1,000 shares at $65.0714. Now the stock is trading at $73.17. It has a market cap of $53.8B and a P/E ratio of 14.34.
Fisher Asset Management
reported to own $300 million-plus of BA shares at the end of September.
SAC Capital Advisors
also invested $72 million in BA.
(ETN - Get Report)
: Eaton is a power management company. ETN was bought by one insider during the past three months. Ned Lautenbach, director at Eaton, purchased 221 shares at $44.67 per share on Nov. 9. Now the stock is trading at $42.98. It has a market cap of $14.6B and a P/E ratio of 11.82. Bain Capital's
had more than $100 million invested in ETN.
(HON - Get Report)
: Honeywell is a technology and manufacturing company. HON was bought by one insider during the past three months.
Kevin Burke purchased
2000 shares at $54.6 on November 15. Now the stock is trading at $53.86. It has a market cap of $42.0B and a P/E ratio of 16.99. Ken Fisher is bullish about HON as well. Fisher Asset Management had $243 million invested in HON at the end of the third quarter.