Insiders are people who have access to confidential or private information about a company. Sometimes, if and when this information becomes public, it can move the price of the shares significantly. This is why so much attention has been paid to insider buying and selling.
In order to prevent the insiders from taking advantage of information that the public does not have access to, when they buy or sell their company’s stock, they need to make a public filing with the SEC. Because of this, we can find out when insiders are buying or selling their company’s stock. And this could give us a clue into the stock’s future prospects.
There are many reasons why they may sell. Maybe they need to raise money to buy a house or pay a college tuition or divorce settlement. However, there is only one reason why an insider will buy the stock. They believe buying it will lead to profits. Sooner or later, they think the shares will trade higher.
Insider buying can be a bullish signal for a stock. This is especially the case if the stock has recently had a large drop in price.
Even though the market is trading close to all-time highs, these stocks have been beaten down recently … and the insiders are stepping up and buying shares.
- Henry Schein (NASDAQ:HSIC)
- Mettler-Toledo (NYSE:MTD)
- Nu Skin Enterprises (NYSE:NUS)
- Incyte Corp (NASDAQ:INCY)
- DuPont (NYSE:DD)
- Cerner Corp (NASDAQ:CERN)
- Sensei Biotherapeutics (NASDAQ:SNSE)
Stocks With Insider Buying: Henry Schein (HSIC)
Henry Schein is in the healthcare business. It provides products and services to dentists, doctors, clinics and laboratories worldwide.
As you can see on the above chart, while the Dow Jones is trading at al time highs, over the past two weeks shares of HSIC have gone the other way. There has been some volatility and the price has dropped from levels around $74 to current levels around $65. This is a decline of more than 12%.
Mohamad Ali is a director of the company. He must believe that the shares are a good investment at its current levels. He just made a significant personal investment of more than $63,000. On Feb. 18 he paid $63.65 for 1,000 shares.
Wall Street agrees with him. Henry Schein is followed buy 16 analysts. The consensus recommendation of these firms is a buy. The average target price is $74.67. That’s about 21% higher than current prices.
Mettler-Toledo manufactures and sells precision instruments and services worldwide, including weighing instruments for industrial, packaging, logistics, laboratory, and food applications.
MTD is a high-priced stock. As you can see on the above chart, over the past week the share price has declined from $1,270 to current levels around $1,116. This is around 12%.
Patrick Kaltenbach is the CEO designate of the company. He has decided to take advantage of the selloff. On Feb. 17 bought 50 shares at $1,170. This was a personal investment of about $58,000.
Wall Street believes that this company is slightly undervalued at current levels. 12 analysts follow and produce research on it. The consensus rating is a hold, with an average target price of $1,182. This is about 6% higher than where it is currently trading.
Nu Skin Enterprises (NUS)
Nu Skin Enterprises develops and sells personal care and wellness products worldwide. Products include cleaners and treatments for skincare.
On Feb. 11 Nu Skin reported its results for last year’s forth quarter. As you can see on the chart, investors were disappointed. Share fell from $62.50 to $49. This is a decline of more than 20%.
Daniel Campbell is a director of the company. He must believe that the selling was overdone. He just made a series of significant investments. Over Feb. 17 and 18, Campbell reported buying a total of 20,020 shares. He paid an average price of $50.05. This was a personal investment of just over $1 million.
It is followed by six analysts. They are split on the stock, but the average target price is $63. This is more than 20% higher than the current price.
Incyte Corp (INCY)
Incyte Corporation is a biopharmaceutical company that operates in the United States and internationally. The company was incorporated in 1991 and is based in Wilmington, Delaware.
Over the past week, the bears have taken control of INCY stock. You can see it on the above chart. They drove it down from levels around $100 to current levels around $80.
Herve Hoppenot is the chairman and CEO of Incyte. He must believe the selling is overdone and that in the future the stock will be trading higher than where it is now. On Feb. 23, he paid an average price of $77.37 for 12,925 shares. This was a personal investment of $1 million.
Wall Street agrees. 21 analysts follow Incyte. The consensus rating is a buy and the average target price is $105. This is over 33% higher that where it is currently trading.
DuPont develops and sells materials, chemical, and agricultural products. It came into being after the former DowDupon split into three companies in 2019. Like Incyte, this company is also based in Wilmington, Delaware.
As you can see on the above chart, over the past two weeks the share price has declined from $86 to around $71. This is a decline of about 17%.
Terrence Curtin is a member of the board of director. He must think the stock is undervalued here, because he just a significant personal investment of more than $520,000. Curtin bought 7,500 shares at an average price of $69.94.
Wall Street agrees. Not surprisingly for such an old company, DuPont was followed by 22 analysts in February, and almost all call it a buy. The average target price is $84 a share. That’s about 19% higher than current levels.
Cerner Corp (CERN)
Cerner Corporation provides healthcare information technology services and products in the United States and internationally.
As you can see on the chart, since the beginning of February shares of Cerner have been is a steep decline. After breaking above the $80 level in late January, they are now trading around the $70 level. This is a decline of about 12.5%.
Mark Erceg is an executive vice president and the chief financial officer of Cerner. He has decided to take advantage of this decline by making significant personal investments. Between Feb. 22 and 24, he invested over $750,000 into the stock. He bought a total of 10,655 shares at an average price of $70.32.
The Street’s opinion on this company is mixed. Twenty firms follow it. Eleven have buy or overweight ratings on it. Nine of them have it as a hold.
Sensei Biotherapeutics (SNSE)
Sensei Biotherapeutics is a clinical-stage immunotherapy company. It makes products that have an initial focus on treatments for cancer.
This is a new company. It just has its initial public offering on Feb. 4. The offering price, or price people who received shares on the IPO paid was $19 a share. When the stock hit the secondary market it reached $26. But as you can see on the above chart, since then shares have been trending lower. They are currently trading around the $17 level.
Cambrian Biopharma is a company that has a substantial investment in Sensei. It owns more than 10% of it. James Peyer is a member of the board of directors. They both must think that this company’s long-term prospects are good.
On Feb. 22 each of these insiders reported purchases of 9,802 shares. They both paid an average price of $18.88. This means the each invested about $185,000.
At the time of this publication, Mark Putrino did not have any positions (either directly or indirectly) in any of the aforementioned securities.