Company insiders have been active in recent weeks as both the S&P 500 and Nasdaq 100 experienced declines. Year to date, the S&P 500 has declined by 14%, while the Nasdaq 100 has declined by 23%.
A company insider is defined as a director, senior officer or 10% owner of a company. Investors typically care about insider transactions because insiders have better knowledge about their respective companies.
Insiders may sell shares for many reasons, whether it be for tax expenses, personal need, or a loss of faith. However, insiders only buy for one reason: They believe the price will go up. Furthermore, a 2003 study conducted by Harvard and Yale professors found out that insider purchases beat the market by 11.2% per year.
With that in mind, let’s take a look at the top insider buys of the week.
Top Insider Buys of the Week
- Carvana (NYSE:CVNA). On May 24, Vice President, General Counsel and Secretary Paul Breaux purchased 15,000 shares of CVNA stock at an average price of $27.59. On May 20, he purchased 15,000 shares at an average price of $32.57. After the purchases, Breaux owns a total of 64,240 shares.
- Coinbase (NASDAQ:COIN). On May 24, co-founder and director Fred Ehrsam purchased 30,030 shares on at an average price of $60.60. The shares were purchased indirectly through the Paradigm One Fund. Ehrsam serves as the managing director of Paradigm, an investment firm dedicated to cryptocurrency and Web 3.0 opportunities.
- Hilton Hotels (NYSE:HLT). On May 24, director Douglas Steenland purchased 1,967 shares at an average price of $127.69. The director has a sizable stake in HLT stock and owns a total of 24,000 shares.
- Doximity (NYSE:DOCS). On May 20, Chief Revenue Officer Paul Jorgensen disclosed purchasing 15,000 shares at an average price of $32.19. After the purchase, Jorgensen owns 197,676 shares.
- Gitlab (NASDAQ:GTLB). On May 24, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), a 10% owner, purchased 13,528 shares of GTLB stock at an average price of $33.72 per share. Google purchased these shares through GV, its venture capital arm. After the purchase, GV owns 593,402 shares of Gitlab.
- Home Depot (NYSE:HD). On May 23, director Caryn Seidman-Becker purchased 1,500 shares of HD stock at an average price of $287.73. After the purchase, Seidman-Becker now owns a total of 1,500 shares. The director also owns 979 deferred shares and 213 deferred stock units.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.