Insider Buying Ratchets Up: BK, TAP, GM, CHK

March 18, 2011, 07:27 am ET, BY Thomas H. Kee Jr- Editor, Stock Traders Daily| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

Our Trading Reports in This Article:

• BK
• TAP
• GM
• CHK

The volatility that has been present in the market was enough to cause the Federal Reserve Bank of New York to reschedule plans to buy Treasury debt on Wednesday. It has not been enough for insiders to shy away from buying up blocks of shares though. Here are four stocks that the insiders like right now.

Buying On Pullbacks

Shares of The Bank of New York Mellon (NYSE: BK) have been trending downwards since early February. On Monday, the company’s CEO, Robert Kelly, had seen enough to convince him that the stock had become a bargain. He picked up just under $300,000 worth of BK common stock at a price of $28.86 per share.

In Q4, BNY Mellon experienced a 14% year-over-year spike in total revenue as assets under management reach record levels. The company also was able to overcome a decline in its fixed income markets with higher securities servicing fees as it turned in an impressive quarter. Nevertheless, BK shares have declined 6.6% so far this year.

On Friday, the CFO of Molson Coors Brewing Company (NYSE: TAP) bought a little more than $130,000 worth of Molson Coors shares at a purchase price of $44.06 per share. The company experienced soft volumes in Q4, but cost saving initiatives helped push net income up by 38.0% when compared to the year-ago quarter. TAP’s stock price has declined 14.6% year-to-date.

Start Your Engines

Shares of General Motors (NYSE: GM) have been on the decline for much of 2011. This pullback has made for an opportunity for insiders to put their money to work at the automaker. In the first half of this month alone, insiders have already purchased more than $650,000 worth of GM common stock. Purchase prices have ranged from $31.81 to $33.07 per share.

The company is coming off of four consecutive quarters of profitability which is no small feat in the U.S. automobile industry. Last week, the company announced that its CFO will be departing the organization at the end of this month. Shares of GM are down 13.8% on the year.

Chesapeake Energy (NYSE: CHK) has seen a flurry of insider buying so far this month also. Four different insiders have stepped up to the plate with purchases totaling more than $1.5 million dollars so far this month. The purchase prices have ranged from $32.07 to $33.44 per share. CHK shares have rallied 33.8% year-to-date.

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