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) -- Insider trading based on material non-public information is illegal. But recent prosecutions indicate that insider trading is rampant on Wall Street. Luckily, ordinary investors can benefit from these activities simply by imitating the purchases of corporate insiders. Academic studies have shown that imitating insider purchases is profitable, especially when there are several insiders buying around the same time. Below we compiled a list of health care stocks that insiders are bullish about. All companies have at least $2 billion market cap and were purchased by at least one insider in the past month. The market data is sourced from Finviz.
Celgene ( CELG) is a global biopharmaceutical company. CELG was bought by one insider during the past month. On Dec. 5, Ernest Mario bought 1000 shares at $61.4 and another 1000 shares at $61.3. Mario also bought 2000 shares at $63 on Nov. 2. It seems Mario knows when to purchase the stock as CELG is now trading at $66.85 per share. Bill Miller's Legg Mason Capital Management had $154 million invested in CELG. Stryker ( SYK) is a medical technology company. SYK was bought by one insider during the past month. Roch Doliveux bought 1000 shares at $47.01 on Nov. 21. SYK's price increased more than $2 per share in one month. The stock is trading at $49.62 per share today. Earlier in August, another director Allan Gloston also bought 500 shares at $46.9852. Steven Cohen's SAC Capital Advisors had $33 million invested in SYK at the end of September. Perrigo ( PRGO) develops, manufactures and distributes over-the-counter and generic prescription pharmaceutical products. PRGO was bought by one insider during the past month. Thomas Farrington purchased more than 2000 shares at $98.38 per share on Dec. 12. Now the stock is trading at $100.96 per share. In August, Farrington sold over 8000 shares of PRGO in total at prices ranging from $88.861 to $96.271. Chuck Royce is also bullish about PRGO. His Royce & Associates reported to own $86 million of PRGO as of Sept. 30.
Edwards Lifesciences ( EW) provides products and technologies that treat advanced cardiovascular disease. EW was bought by one insider during the past month. On Nov. 29, Barbara McNeil purchased 158 shares at $63.78. Now the stock is trading at $70.22 per share, returning over 10% since November 29. Louis Navellier also invested $31 million in EW. Columbus Circle Investors had $37 million in EW at the end of September. Boston Scientific ( BSX) develops, manufactures and markets medical devices globally. BSX was bought by three insiders during the past month. On Nov. 29, Nj Nicholas purchased 10,000 shares at $5.56. BSX is currently trading at $5.26 per share, slightly lower than the price Nicholas bought at. Nicholas also purchased 30,000 shares of the stock in total at around $6.67 per share in May. BSX was trading above $7.25 per share in July. On Nov. 28, Ernest Mario and Katharine Bartlett bought 100,000 shares and 8,000 shares respectively at around $5.40 per share. Mario also bought 25,000 shares at $5.30 on Nov. 21 and 5,0000 shares in total at around $5.50 per share in October. Like Nicholas, Mario bought the stock in May as well. He purchased 2,500 shares at $6.72 in mid-May. Insider purchases in BSX sends "strong buy" signals and outsiders can imitate insiders without paying a premium in this case. Omega Advisors had nearly $100 million in BSX at the end of the third quarter. Other healthcare stocks insiders are buying during the past month include United Therapeutics ( UTHR), Techne ( TECH) and Sirona Dental Systems ( SIRO). The strongest buy signal comes from SIRO as four insiders purchased shares during the past 30 days. Investors should also keep in mind that insider trading in smaller companies are generally more profitable. Nevertheless, they have to research these names carefully as sometimes insiders try to trick the investors by making coordinated small purchases. >>To see these stocks in action, visit the 8 Health Care Stocks Insiders Are Bullish on portfolio on Stockpickr.