Four Stocks the Insiders Are Buying – VCLK, MJN, DPS, PEP, PG

May 19, 2010, 08:30 am ET, BY Billy- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

Over the course of the past couple of weeks, several noteworthy insider transactions have originated. The notion that insiders are closer to the company than traders makes these specific purchases very compelling. That being said, here are four stocks the insiders are buying.

Just A Click Away

A major bet was made on ValueClick (Nasdaq: VCLK) by James Zarley, a director, on Wednesday of last week. Zarley bought $5.8 million worth of VCLK shares at $9.85 per share. On Friday, ValueClick’s stock price closed at $10.74.

A few weeks ago, the company reported Q1 results in which EPS rose to $0.25 from $0.15 in the year-ago quarter. Revenue was down 7% on a year-over-year basis, although ValueClick’s technology business segment saw a 23.0% spike in revenue. Traders who are eyeing this stock can check out our free VCLK trading report for an in-depth technical analysis.

James Cornelius, a director for Mead Johnson Nutrition (NYSE: MJN), recently picked up close to $500,000 worth of MJN shares at a price of $48.36 per share. The company has been experiencing double-digit sales and earnings growth from its international business segment. The pediatric nutrition company has had particularly strong gains in China. Traders looking to take a long or short position in this stock are encouraged to review our free MJN trading report prior to making a final decision.

The Doctor is In

The CFO for Dr. Pepper Snapple Group (NYSE: DPS) purchased $347,100 worth of DPS shares earlier this month. The stock has risen 7.3% since the transaction occurred at a price of $34.71 per share. DPS shares are trading near a 52-week high and carry a dividend-yield of 1.6%.

In Q1, DPS completed licensing agreements with PepsiCo (NYSE: PEP) and the company’s bottler case sales volume experienced a 3% uptick. The company acknowledged that it has been battling challenging consumer trends, although it did proceed to buy back $202 million worth of its own common stock. Traders who are considering a purchase of this stock can review our free DPS trading report for additional insight.

On May 7^th a director for Procter & Gamble (NYSE: PG) bought just under $100,000 worth of P&G shares at $60.21 per share. Last month, the company upped its quarterly dividend by 9.5%. This stock now wields a dividend yield of 3.1%. Traders looking to play P&G can view our free PG trading report for assistance in implementing adequate risk controls when trading this stock.

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