5 Stocks Insiders Are Loading Up On
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Insiders usually buy their own shares for one reason only: They think the stock is a bargain and has big upside.
Recently, a number of companies’ corporate insiders have been gobbling up their own stock. These insiders see value, which warrants a closer look at these names.
Wells Fargo & Company
One financial player that insiders are loading up on here is Wells Fargo & Company (WFC) , which provides retail, commercial and corporate banking services to individuals, businesses and institutions.
Wells Fargo & Company has a market cap of $262 billion. This stock trades at a reasonable valuation, with a forward price-to-earnings of 11.5. Its estimated growth rate for this year is 5.3%, and for next year it’s pegged at 8.6%. This is a cash-rich company, since its total cash position is $421.34 billion and its total debt is $363.80 billion.
A director just bought 58,342 shares, or $3.01 million worth of stock, at $51.65 per share. The CEO also just bought 39,000 shares, or $2.01 million worth of stock, at $51.65 per share.
If you’re bullish on Wells Fargo & Company, then I would look for long-biased trades as long as this stock is trending above its 200-day at $51.29 or above more support at $50.62 and then once it breaks out above near-term resistance levels at $54 to its 20-day at $54.62 with volume near or above its three-month average of 18.24 million shares. Some possible upside targets off that breakout are its 50-day, at $56.68 to $58, or even $60 a share.
Calavo Growers
Another farm products player that insiders are jumping into here is Calavo Growers (CVGW) , which operates in the avocado industry.
Calavo Growers has a market cap of $1.15 billion. This stock trades at a reasonable valuation, with a forward price-to-earnings of 23.51. Its estimated growth rate for this year is 7.8%, and for next year it’s pegged at 18.3%. This is not a cash-rich company, since its total cash position is $7.59 million and its total debt is $60.05 million.
The CEO just bought 42,942 shares, or $2.65 million worth of stock, at $61.78 per share.
If you’re bullish on Calavo Growers, I would look for long-biased trades if this stock is trending above its 200-day at $60.83 and then once it breaks out above some key resistance levels at $66 to $66.85 and over $67.50 with volume near or above its three-month average of 227,219 shares. Some possible upside targets off that breakout are $70.50 to its 52-week high of $71.48, or even $75 a share.
Apollo Global Management
One financial player insiders are snapping up a large amount of stock in here is Apollo Global Management (APO) , which is a publicly owned investment manager.
Apollo Global Management has a market cap of $10.46 billion. This stock trades at a cheap valuation, with a forward price-to-earnings of 9.50. Its estimated growth rate for this year is -3.4%, and for next year it’s pegged at 18.4%. This is not a cash-rich company, since its total cash position is $847.65 million and its total debt is $2.14 billion. This stock currently sports a dividend yield of 6.9%.
A beneficial owner just bought 1,486,800 shares, or $38.32 million worth of stock, at $25.65 to $25.30 per share. That same beneficial owner also just bought 450,000 shares, or $11.46 million worth of stock, at $25.47 to $25.48 per share.
If you’re in the bull camp on Apollo Global Management, I would look for long-biased trades if this stock is trending above its 50-day at $23.52 or above more support at $22 and once it breaks out above its 52-week high at $26.22 to some past resistance at $26.89 with volume near or above its three-month average of 1.85 million shares. Some possible upside targets off that breakout are $30 to $35 a share.
Delta Air Lines
One airlines player that insiders are moving into here is Delta Air Lines (DAL) , which provides scheduled air transportation for passengers and cargo in the U.S. and internationally.
Delta Air Lines has a market cap of $33.14 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 8.34. This is not a cash-rich company, since its total cash position is $2.65 billion and its total debt is $9.23 billion. This stock currently sports a dividend yield of 1.8%.
A director just bought 5,665 shares, or $249,000 worth of stock, at $44.12 per share.
If you’re bullish on Delta Air Lines, I would look for long-biased trades if this stock is trending above its 200-day at $43.88 and then once it breaks out above some near-term resistance levels at $47.17 to its 50-day at $47.52 and then above $48.50 with volume near or above its three-month average of 8.59 million shares. Some possible upside targets off that breakout are $50 to $52, or even its 52-week high of $52.76 a share.
Incyte
My final stock with some notable insider buying is healthcare player Incyte (INCY) , which focuses on the discovery, development and commercialization of proprietary therapeutics in oncology in the U.S. and abroad.
Incyte has a market cap of $25.61 billion. This stock trades at a premium valuation, with a forward price-to-earnings of 130.89. This is a cash-rich company, since its total cash position is $808.55 million and its total debt is $651.48 million.
A director just bought 1,000 shares, or $139,000 worth of stock, at $139.48 per share. That same director also just bought 1,000 shares, or $139,000 worth of stock, at $139.66 per share.
If you’re bullish on Incyte, I would look for long-biased trades if this stock is trending above some near-term support at $124.05 or above more support at $117 and then once it breaks out above some near-term resistance at $128.41 with volume near or above its three-month average of 2.64 million shares. If that breakout hits soon, this stock will set up to refill some of its recent gap-down-day zone that started at $142.45 a share.
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.
