7 Blue-Chip Stocks You’re Selling, But Insiders Are Buying

As the media and investors whipped up a frenzy of COVID-19 panic selling in March, some corporate insiders (such as CEOs and directors) had an entirely different take. They calmly scooped up shares of their own companies at an insider buying rate we haven't seen in a decade.

Here's some useful market insight: When investors and the media are super-negative and insiders are buying in droves, that's often a great time to purchase stocks for the medium-term, which is at least two or three years.

Here's another bullish signal from insider trading: Many insiders are buying companies in the "wrong" places. They're decidedly going for stocks in energy, basic materials (such as chemicals) and consumer-facing businesses. These are all among the hardest-hit areas of the market, with more to lose in a prolonged recession.

This all adds up to the boldest "contrarian" insider trading buy signal that I've ever seen in the 10 years I've tracked insider activity as a starting point for investment ideas in my stock letter Brush Up on Stocks.

Here are seven blue-chip stocks that have experienced significant insider buying lately. Insider buying, like any other signal, isn't a guarantee of anything. So to improve our chances of success, we narrowed down a list of companies seeing heavy insider buying to make sure we're buying high-quality