Are These Insider Buys and Sales in These Dow Stocks Making a Difference?
The five Dow Jones Industrial Average (NYSE:DIA) members listed below have seen insider transactions over the past few months. How seriously should investors take these insider moves?
The insider buying activity at Boeing Co. (NYSE:BA) has been relatively low. In August, Director Susan Schwab purchased 346 shares at $57.96. What’s more telling is the insider selling activity. In May, Officer Thomas Downey and Dennis Stephens both sold several thousand shares near $80. Considering Boeing’s 52-week high is $80.65, investors looking for a good profit taking price should keep the $80 mark in mind. Shares of Boeing currently trade at $65. Competitors include: Lockheed Martin (NYSE:LMT) and Northrop Grumman Corp (NYSE:NOC).
The Walt Disney Company (NYSE:DIS) is a leading diversified international family entertainment and media enterprise. Director and former Procter & Gamble (NYSE:PG) CEO John Pepper, purchased 3,000 shares at $31.83 in August. Mr. Pepper appears to be a regular buyer of Disney shares, but other insider transactions may help investors paint at better price target. Officer Christine McCarthy conducted an automatic sale of 20,000 shares once Disney hit a price of $39.90-$39.95. The $40 price level also remains a focal point for Officer Brent Woodford, who sold 2,500 shares at $40.25. Shares of Disney currently trade near $35 and shares are down 7% year-to-date.
Investing Insights: The Walt Disney Company Fourth Quarter Earnings Sneak Peek.
Shares of Exxon Mobil (NYSE:XOM) are up 7% for the year. With shares currently trading near $78, insider selling shows that the upside may be limited in Exxon. In October, Officer Mark Albers sold 20,000 shares at $80 per share, while Thomas Walters sold 10,307 shares at $81.64 per share. Officer Stephen Pryor sold 24,000 shares at $80.69 per share. Competitor Chevron (NYSE:CVX) also appears to have limited short-term upside.
Long-time Warren Buffett favorite Coca-Cola (NYSE:KO), is another stock that is having trouble getting above resistance. Shares currently trade at $67, but insiders seem to lose confidence in shares when they tick above $70. Dominique Reiniche conducted an automatic sale of 50,000 shares at $71.01 per share on September 20. The day before, he conducted another automatic sale of 50,000 shares at $70.07 per share. Shares are up 3% for the year, and currently pay a 2.8% dividend.
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Despite insider buying, the financial sector (NYSEARCA:XLF) remains an area for investors to avoid. Shares of JP Morgan (NYSE:JPM) are down 20% year-to-date, but insiders are buying the bank. In August, Director James Crown purchased 176,609 shares at $35.08 per share. In July, Stephen Burke purchased 25,000 shares at $42.18 per share. The Greek tragedy and sovereign debt problems have sent other other major banks such as Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS) sharply lower for the year as well.
Don’t Miss Part 1 of this Post: Does Insider Buying and Selling in These Dow Stocks Matter?