5 Stocks With Bullish Insider Action

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 ( Insider Monkey) -- 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.
Ticker Company Insiders
BA Boeing 1
ETN Eaton 1
HON Honeywell International 1
NOC Northrop Grumman 1
DOV Dover 2

Boeing ( BA): 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. Ken Fisher's Fisher Asset Management reported to own $300 million-plus of BA shares at the end of September. Steven Cohen's SAC Capital Advisors also invested $72 million in BA.

Eaton ( ETN): 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 Brookside Capital had more than $100 million invested in ETN.

Honeywell International ( HON): 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.

Northrop Grumman ( NOC): Northrop Grumman designs, integrates and manufactures military aircraft, defense electronics, precision weapons, commercial and military aero-structures. NOC was bought by one insider during the past three months. On Nov. 7, Linda Mills bought 490 shares at $57.38 and another 885 shares at $58.24 per share. Now the stock is trading at $56.61. It has a market cap of $14.8B and a P/E ratio of 9.21. Jean-Marie Eveillard's First Eagle Investment Management disclosed owning $249 million worth of NOC shares at the end of September.

Dover ( DOV): Dover is a manufacturer of specialized industrial products and equipment. DOV was bought by two insiders during the past three months. On October 26, Stephen Todd bought 1000 shares in total at around $55.73 per share. On the same day, another director at Dover, Richard Lochridge, bought 7150 shares in total at around $55.93 per share. Now the stock is trading at $56.96. It has a market cap of $10.7B and a P/E ratio of 13.04. Ken Fisher's Fisher Asset Management also invested $347 million in DOV.

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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