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InvestorPlace
7 Stocks With Important Insider Trading Signals That Say Sell
Insider trading happens when people who have access to confidential information about a company use that to profit off its stock. These insiders include folks like the corporate officers and members of the board of directors. Historically, there have been countless cases of unscrupulous insiders benefitting at the expense of unsuspecting shareholders. For example, suppose an insider knows that some news is about to come out that will cause a company’s stock price to fall. They could go into the market and sell their shares to someone who doesn’t know about the news. Likewise, if there’s news coming out that will drive the price higher, they could buy stock from an unsuspecting shareholder. In order to prevent this type of activity, the government has developed numerous regulations and laws. One requires that, when a company insider decides to buy or sell shares in their company’s stock, they must publicly disclose it to the U.S. Securities and Exchange Commission (SEC). That gives outside investors a chance to profit, too.InvestorPlace – Stock Market News, Stock Advice & Trading Tips Right now, the market is making all-time new highs. Some analysts believe that this recent insanity with GameStop (NYSE:GME) and the cryptocurrency markets are signs that we are in a bubble. Many companies have seen their stock prices soar for no apparent logical or fundamental reasons. 8 Cheap Stocks Under $20 That Could Double But within this wildness, there has also been insider trading in the following seven companies. The insiders have decided to take advantage of the rallies and sell some of their shares. That could mean they believe these stocks are over or fairly valued and will eventually trade lower. aTyr Pharma (NASDAQ:LIFE) ANGI Homeservices (NASDAQ:ANGI) Anaplan (NYSE:PLAN) Tradeweb Markets (NASDAQ:TW) SVMK (NASDAQ:SVMK) Smartsheet (NYSE:SMAR) Twitter (NYSE:TWTR) Insider Traded Stocks to Sell: aTyr Pharma (LIFE) Chart by TradingView A biotherapeutics company, aTyr Pharma was founded in 2005, is based in California and is the first name in this article on insider trading. As you can see in the chart above, shares of LIFE stock doubled in just three days. On Feb. 4, the stock opened at $3.90 per share. Then on Feb. 8 — just two trading days later — shares reached $8.33. There was no news, so the stock was probably taken up by the day traders. However, two company insiders decided to sell some of their shares. President and CEO Sanjay Shukla sold 778 shares at $7.66, while CFO Jill Broadfoot sold 390 shares at $7.66 as well. These were small sales and both insiders continue to hold larger positions. But this could also mean they believe the shares got ahead of themselves in the recent market frenzy. The three analysts on Wall Street that follow this company think aTyr’s long-term prospects are great. According to Tipranks, they all have strong buy ratings on the stock, with an average price target of $13.33. That is about two times higher than where LIFE stock is now. ANGI Homeservices (ANGI) Chart by TradingView ANGI Homeservices operates a digital marketplace that — you guessed it — connects consumers with home service professionals. This is another stock that has ripped higher in the recent market chaos. As you can see on the above chart, the share price appreciated by more than 50% in less than a month. Between Jan. 15 and Feb. 8, ANGI stock rose from around $12 to a close of $18 per share. Allison Lowrie is the CMO of ANGI. She decided to raise some cash and take advantage of the recent move. Based on a SEC Form 4 (which reports insider trading), Lowrie sold 76,903 shares at $17.74 per share. That’s worth close to $1.4 million. 7 Must-Own Stocks in February Wall Street seems to agree with Lowrie that this is a fair valuation for the company. On Tipranks, nine analysts follow ANGI and have an average target price of $17.38. That is somewhat close to the current price of just under $16. Anaplan (PLAN) Chart by TradingView Anaplan is a company that provides a cloud-based planning platform to connect people and organizations. The company was founded in 2008 and is headquartered in San Francisco, California. On Jan. 28, shares of PLAN stock opened at around $62.50. By Feb. 8, they had reached a high of over $83. That represents a gain of more than 30%. Sandesh Kaveripatnam is a director for Anaplan. In terms of insider trading, Kaveripatnam decided to take advantage of the recent price appreciation and raise some cash. One Feb. 5, he sold 11,991 shares at prices between $78 and $81. That made for a sale amounting well over $900,000. Wall Street thinks that shares are fairly valued at current levels. Moreover, they probably think that Kaveripatnam has made a smart move. On Tipranks, five analysts follow Anaplan. The average target price is $79.59 — relatively in-line with where PLAN stock is currently trading. Tradeweb Markets (TW) Chart by TradingView Next on this insider trading stocks list, Tradeweb Markets builds and operates electronic marketplaces. According to it’s website, the company “offers institutional, wholesale and retail market participants unparalleled liquidity, advanced technology and a broad range of data solutions.” Moreover, Tradeweb operates in both the United States and internationally. It was founded in 1996. As you can see on the above chart, TW stock is trading at a resistance level. Resistance means there is a large concentration of sellers gathered around the same price. When stocks reach resistance levels, they have a tendency to sell off. That has happened with Tradeweb. It hit resistance in both June and December. Now it has reached that level once more. Enrico Bruni is a managing director for the company. Probably believing shares would sell off again, Bruni reportedly sold 142,861 shares at a price of $67.66 on Feb 9. 7 Safe Stocks for Reddit’s WSB Bull Gang Like ANGI and PLAN, the Street thinks TW stock is fairly valued, too. On Tipranks, the seven analysts following the company give this name an average share price of $69.83 — close to current prices. SVMK (SVMK) Chart by TradingView Formerly known as SurveyMonkey, SVMK provides clients with survey software solutions. The company’s products allow other companies to engage with their customers and employees. SVMK was founded in 1999 and is headquartered in San Mateo, California. At the beginning of December, shares of SVMK stock were trading around the $21 level. Since then, they have trended higher. Trading at a high of $28.12 on Feb. 11, the stock currently changes hands closer to $25. Like with other insider trading names on this list, CEO Alexander Lurie just made a significant sale on the stock. Between Feb. 5 and Feb. 8, Lurie sold a total of 16,595 shares at an average price of $28. This is about $460,000 worth of stock. Three analysts follow SVMK stock on Tipranks and they probably agree with Lurie’s decision to sell. Each believes shares are trading at a fair price. The average target is $29. This is only slightly higher than the range that the stock traded at over the past several days — and close to the price that the CEO sold at. Smartsheet (SMAR) Chart by TradingView Smartsheet provides a cloud-based platform for the efficient execution of work. The company was founded in 2006 and is headquartered in Washington state. As you can see in the above chart, between late November and now, shares have rallied from $52 to today’s levels of over $80. With SMAR stock trading at about $84 (and rising), this represents a gain of over 60% in less than three months. At least one insider is using this move to lighten up their position. In terms of insider trading, CMO Anna Griffin sold 5,500 shares between $75 and $76 on Feb. 5. That made for a gain of more than $400,000. Other insiders have reported selling shares as well. 7 F-Rated Growth Stocks to Sell Sooner Than Later This company is widely followed by Wall Street. Nine analysts cover the stock on Tipranks. They give it an average target price of $80.89. This is only a few dollars below where it trades today. Twitter (TWTR) Chart by TradingView Last on this list of insider trading stocks, Twitter is a social media company that operates as a platform for public self-expression and conversation in real time — in both the United States and internationally. It was founded in 2006 and has headquarters in San Francisco, California. Like other companies in this article, Twitter has rallied and the insiders are selling. In just the past month, the price of TWTR stock has gone from $46 to $60 and above. The stock trades at around $72 today. On Tipranks, 32 analysts give a price target of $62.86 on Twitter. This is about $10 below the current price. What’s more, Robert Kaiden is the chief accounting officer of the company and sold shares recently. On Feb. 9, Kaiden reported selling 12,032 shares at prices between $55 and $57 a piece. At the time of this publication, Mark Putrino did not have any positions (either directly or indirectly) in any of the aforementioned securities. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next Potential Winner It doesn’t matter if you have $500 in savings or $5 million. Do this now. #1 Play to Profit from Biden’s Presidency The post 7 Stocks With Important Insider Trading Signals That Say Sell appeared first on InvestorPlace.
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Benzinga
Cramer Gives His Opinion On Zoom, AbbVie And More
On CNBC’s “Mad Money Lightning Round,” Jim Cramer said Zoom Video Communications, Inc. (NASDAQ: ZM) is good. It is still down a lot from its highs, but it is having a good quarter and it is a staple, he added. Cramer would be a buyer of DuPont de Nemours Inc (NYSE: DD) at its current price. He sold his position at $86 and he is buying back right here. Ageagle Aerial Systems Inc (NYSE: UAVS) is an exciting stock, but please recognize it as a spec, said Cramer. For an easier way to own drones, he is recommending Honeywell International Inc. (NYSE: HON). Cramer would buy the weakness in Affirm Holdings Inc (NASDAQ: AFRM). He said Max Levchin will do well with Affirm. You want to own General Electric Company (NYSE: GE), said Cramer. He sees the stock at $15 if it gets orders from Boeing. Travel has to start for Boeing orders to happen, he noted. AbbVie Inc (NYSE: ABBV) is a bargain, said Cramer. People are not using botox as they used to, but Cramer finds its migraine franchise amazing. With AT&T Inc. (NYSE: T), you are reaching for yield, but it doesn’t offer any peace of mind, said Cramer. NVIDIA Corporation (NASDAQ: NVDA) is maybe the crown jewel semiconductor company in the world, said Cramer. He would own the stock. See more from BenzingaClick here for options trades from BenzingaCramer Advises Viewers On XL Fleet, InterDigital And MoreMike Khouw Sees Unusual Options Activity In PayPal© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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InvestorPlace
An $80 Price Would Drive Nio To Become the Third-Largest Automaker
As I’m preparing my latest article about Nio (NYSE:NIO), the hard-charging Chinese manufacturer of electric vehicles (EVs), Nio stock trades for $60. That values the company at $93.6 billion, good for the fifth spot amongst the world’s largest automakers by market capitalization. Source: Sundry Photography / Shutterstock.com On Feb. 1o, Deutsche Bank analyst Edison Yu reiterated his “buy” rating and $70 price target. By hitting Yu’s target, Nio could become the third-largest automaker in the world. Here’s why Volkswagen (OTCMKTS:VWAGY) and BYD (OTCMKTS:BYDDF) ought to be looking in their rearview mirrors. InvestorPlace – Stock Market News, Stock Advice & Trading Tips Much Has Changed for Nio Stock in the Past Year Approximately 15 months ago, I didn’t have much good to say about the upstart EV manufacturer: “As Taulli [InvestorPlace contributor Tom Taulli] points out, the company’s burning through cash at such a rate, any future equity or debt financing arrangements will be highly one-sided for the entity providing the lifeline and terrible for current shareholders. “Nio’s Altman Z-Score, a predictor of future bankruptcy, is -4.45 at the current moment. That’s nowhere near where it needs to be to give investors a warm, fuzzy feeling. “I wish I had better news for shareholders of Nio stock. But you can’t put lipstick on a pig.” Of course, in hindsight, we know that Nio snagged $1 billion in critical financing less than five months later, and the rest is history. Forever, that will be known as the turning point for the company. So, by June 2020, I fully converted from skeptic to enthusiast, suggesting a double-digit stock price by the end of the year was totally realistic. It finished 2020, just shy of $50. It’s amazing what a billion dollars will do for your confidence. A 17% Gain Puts Nio At or Near Third Spot Based on the analyst’s 12-month target price of $70, the price of Nio stock only has to appreciate by 17% over the next year to hit the target. At the rate it’s growing, that seems like a slam dunk. Nio recently announced further collaboration with the Hefei municipal government, the same people who rescued the company from crashing in April 2020. As part of this collaboration, the Hefei government plans to reinvest the returns from their equity investment in Nio to further support EV production in the city. Hefei is focusing on making the city a hotspot for all things EV. As part of this expansion, the city will build the Hefei Xinqiao Smart Electric Vehicle Industrial Park. Importantly, Nio plans to use this park as the foundation for building its global growth. Yu said: “This lays the groundwork for capacity expansion to help NIO reach its +300k longer term volume target or nearly 3x current capacity. Details were not provided on financing sources, but we suspect there will be large support in the form of bank credit lines or arrangements similar in nature.” A little success and the lenders are falling all over themselves to get in on the action. What’s the old saying? A banker will always give you an umbrella when the sun is shining and there’s not a cloud in the sky. Anyway, a $70 share price puts Nio’s market cap at $109 billion, about the same value as BYD’s current market cap. However, I think it’s fair to say that if Nio moves higher over the next 12 months, then BYD and Volkswagen, not too far behind at $107 billion, should too. It’s Got to Go to $80 or Higher to Grab the Third Spot Based on 1.56 billion shares outstanding, an $80 share price by this time next year puts its market cap at $125 billion, giving it a little breathing room over its two peers. Can it get there? I think it can gain 34% over the next 12 months to get to the magic number. Here’s how. In 2020, Nio delivered 43,728 vehicles. Based on its current market cap of $93.6 billion, that’s $2.14 million per delivered vehicle. In 2019, it delivered 20,565 vehicles. It had 831.9 million shares outstanding as of Dec. 31, 2019, and a share price of $3.72. That’s $150,482 per delivered vehicle. I’m going to assume that Nio doubles its deliveries once more in 2021. So, based on $93.6 billion, that’s $1.07 million for each of the 87,456 estimated vehicle deliveries in 2021. However, Nio could have a fourth vehicle, the EE7 sedan, in production by the fourth quarter, most certainly adding to these numbers. Also, it’s got a fifth vehicle on the drawing board for 2022. So, based on $1.07 million per delivered vehicle, it will have to deliver 116,822 vehicles in 2021. While possible, I think that’s pushing it. Assuming a vehicle delivery number roughly halfway between 87,456 and 113,636 and $1.65 million per delivered vehicle [halfway between $1.1 million and $2.2 million] and we get 100,546 vehicles delivered at $1.65 million for a market cap of $166 billion or $106.40 per share [1.56 billion outstanding]. I can’t believe I’m saying this, but I think it’s got an excellent chance of blowing through Yu’s target on its way to the third spot in the global pecking order. Long term, Nio’s a buy. On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next Potential Winner It doesn’t matter if you have $500 in savings or $5 million. Do this now. #1 Play to Profit from Biden’s Presidency The post An $80 Price Would Drive Nio To Become the Third-Largest Automaker appeared first on InvestorPlace.
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Financial Times
Bitcoin’s rise reflects America’s decline
The asset I’m referring to is gold priced in Weimar marks. In his newsletter Tree Rings, analyst Luke Gromen looked at the startling similarities in the volatility of gold in Weimar Germany and bitcoin today. Central bankers have over the past 10 years (or the last few decades, depending on where you put the marker) quashed price discovery in markets with low interest rates and quantitative easing.
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InvestorPlace
3 Undervalued Stocks Looking Up in 2021
It’s common knowledge that investing in undervalued stocks can generate some juicy returns over the long haul. However, the tricky part is investing in the right stocks at the right time. Investors often favor certain sectors over others and undervalued stocks tend to be in the latter category. Although 2021 is shaping up to be a bull cycle, there are still plenty of stocks trading below their value. Investors looking for a value play should consider buying these stocks as these gravitate towards the prices they are worth.InvestorPlace – Stock Market News, Stock Advice & Trading Tips 8 Cheap Stocks Under $20 That Could Double Here are three stocks that should be in for greater upside this year. Ford (NYSE:F) IBM (NYSE:IBM) Intel Corporation (NASDAQ:INTC) Undervalued Stocks: Ford (F) Source: Jonathan Weiss / Shutterstock.com In the Ford versus General Motors (NYSE:GM) wars, GM comes out on top this year for its recent venture into the autonomous vehicle space. However, there is plenty of evidence to prove that Ford is in a great position to close the performance gap in the coming months. One key tailwind is Rivian, the electric truck manufacturer. In 2019, Ford announced a minority stake in the electric truck start-up which is worth $28 billion. Although the company is yet to generate sales, its first vehicle is expected to come out later this year. This could bolster Ford’s bottom line as well. Adding to its partnership with Rivian, Ford is also expected to develop a line of electric vehicles in-house. In 2020, the automaker started distribution of its Mustang-Mach E and deliveries of the electric F-150 truck will begin this year. Ford has a market cap of just $45 million with free-cash-flow (FCF) of $3 billion. At this ratio, Ford is among the top undervalued stocks in the market. Under the hem of its new CEO Jim Farley, the company is primed for a major comeback this year. IBM (IBM) Source: Laborant / Shutterstock.com For the period ended in December, IBM stock took a hit after the company reported some poor quarterly results. A major reason for the 6% dip in revenue (year-over-year) was its slow adoption of cloud-based solutions. As expected, the Q4 earnings resulted in a massive sell-off bringing its share price back to March 2019 lows. Although this should deter investors from throwing their support behind the stock, IBM’s future prospects make it a great investment at its current price. For one, IBM’s recent transition to cloud solutions gives the company plenty of opportunities to grow in the coming years. According to CEO Arvind Krishna, hybrid cloud computing will be a $1 trillion opportunity for the company. This along with developments in artificial intelligence (AI) will translate to higher revenue levels in the second half of this year. Given the positive trends, I think IBM remains one of the most undervalued stocks on the market right now. Investors should get behind the investment before prices go higher. Intel Corporation (INTC) Source: Kate Krav-Rude / Shutterstock.com Another company that’s had a tough run this year is the chipmaker Intel. During its earlier than expected earnings call, CEO Pat Gelsinger stated that the company will continue to manufacture its chips in-house. This came as a disappointment to many investors who were hoping the company would outsource the manufacturing to improve internal efficiency. The news overshadowed Intel’s earnings, which beat analyst estimates on both revenue and earnings per share. Although the reaction to the earnings was a mixed bag there are still plenty of reasons to hold on to Intel stock. Intel stated that it will not outsource the production of its chips but there is a possibility it could do so for its other line of products like GPUs. As far as CPUs go, keeping the production of this in-house is capital intensive and could very-well lower its market competitiveness. However, there is good reason to believe that it can catch up to rivals like Advanced Micro Devices (NASDAQ:AMD), an emerging leader in the space. Last month, Intel introduced a new line of processors that will hit the market this year. As CPU sales spike, Intel will be able to capture a greater share of the market this year. Intel definitely has its challenges but in the grand scheme of things, the company has numerous opportunities to come out on top in 2021. On the date of publication, Divya Premkumar did not have (either directly or indirectly) any positions in any of the securities mentioned in this article. Divya Premkumar has a finance degree from the University of Houston, Texas. She is a financial writer and analyst who has written stories on various financial topics from investing to personal finance. Divya has been writing for InvestorPlace since 2020. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next Potential Winner It doesn’t matter if you have $500 in savings or $5 million. Do this now. #1 Play to Profit from Biden’s Presidency The post 3 Undervalued Stocks Looking Up in 2021 appeared first on InvestorPlace.
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TheStreet.com
Bearish Bets: 2 Downgraded Stocks You Should Consider Shorting This Week
Each week Trifecta Stocks identifies names that look bearish and may present interesting investing opportunities on the short side. Using technical analysis of the charts of those stocks, and, when appropriate, recent actions and grades from TheStreet’s Quant Ratings, we zero in on five names. While we will not be weighing in with fundamental analysis, we hope this piece will give investors interested in stocks on the way down a good starting point to do further homework on the names.
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Benzinga
Barron’s Latest Picks And Pans: COVID Booster Shot Plays, Defense M&As, Coty, Hologic, And More
This weekend’s Barron’s cover story offers a look at the 100 must sustainable companies. Other featured articles discuss the changing vaccine industry, the history of electric vehicles and consolidation in the defense sector. Also, the prospects for a medical-diagnostics company, a high-tech glass maker, a beauty products company and more. Cover story “The 100 Most Sustainable Companies” by Leslie P. Norton discusses how companies from Best Buy Co Inc (NYSE: BBY) to Verizon Communications Inc. (NYSE: VZ) scored in terms of taking care of all their stakeholders (employees, customers, communities and the environment) as well as investors in a tough year. Josh Nathan-Kazis’ “How the Pandemic Is Changing the Vaccine Industry” makes the case that annual COVID-19 booster shots are likely, which would lift sales. Furthermore, the crisis has enabled biotech upstarts to compete with the giants. See what that could mean for AstraZeneca plc (NASDAQ: AZN), Novavax, Inc. (NASDAQ: NVAX) and others. In “Hologic Stock Is Cheap. Time to Buy,” Evie Liu points out that medical-diagnostics company Hologic, Inc. (NASDAQ: HOLX) is a COVID-19-beneficiary but also a business that will benefit as life returns to normal. Moreover, the stock has gained 55% during the past year, but its valuation has dropped as well. Why it is time to buy, according to Barron’s. Corning Incorporated (NYSE: GLW) has been around since 1851 and now serves a diverse set of markets, from smartphones to auto manufacturing to vaccine vials. So says “Corning Is Filling Its Glass With New Ideas” by Eric J. Savitz. Find out why Barron’s believes this stock deserves more attention. In Kenneth G. Pringle’s “Electric Vehicles Were a Nonstarter—Until Tesla Came Along,” the focus is on how the road to creating a viable electric car like those from Tesla Inc (NASDAQ: TSLA) has been long and bumpy. The article shows how EVs went from an elusive dream to reality over the past 100 years. “Coty Stock Tumbled After Earnings. It’s Time to Buy” by Ben Levisohn explains that Coty Inc (NYSE: COTY), the parent company of Cover Girl, Kylie, Max Factor and other well-known beauty brands, has had too much debt, too little growth and too many CEOs since the start of 2020. Yet, the stock now looks poised for a turnaround. See also: Benzinga’s Weekly Bulls And Bears: GameStop, Intel, Lyft, Tilray, Twitter And More Hot money going into the cannabis sector is making a hash of fundamental analysis, according to Jack Hough’s “Pot Stocks Are Flying High. Here Are 4 on Firm Footing.” Find out where Barron’s believes the opportunities lie. Does Tilray Inc (NASDAQ: TLRY) make the cut? Innovative Industrial Properties Inc (NYSE: IIPR)? In “How to Benefit From Tech’s Run, Without Big Tech Exposure,” Eric J. Savitz examines how, after the dot-com bubble burst, this renowned portfolio manager had the worst mutual fund in America. Two decades later, the fund is thriving, thanks to small-cap tech stocks such as Silicom Ltd. (NASDAQ: SILC). Carleton English’s “Cubic Buyout Could Signal More Deals for Defense Contractors” says that Cubic Corporation (NYSE: CUB) has agreed to a $2.8 billion buyout, the latest in a string of mergers and acquisitions in the defense sector. Who could be next? Aerojet Rocketdyne Holdings Inc (NYSE: AJRD)? FLIR Systems, Inc. (NASDAQ: FLIR)? Also in this week’s Barron’s: Methodology for the Barron’s 2021 ranking of most sustainable companies How today’s stock mania differs from 1999’s, but that might not matter Whether the reasons to be hopeful about the stock market are also reasons to worry How much U.S. minimum wages hikes have cost businesses so far How much rising U.S. interest rates are worrying emerging markets Whether emerging markets will outperform after the pandemic Why companies should disclose their corporate and social impacts, just like their profits Who says the pandemic could be “effectively” over by April Who could get $12,800 in relief under Biden’s stimulus plan The biggest questions for the pandemic-year tax season At the time of this writing, the author had no position in the mentioned equities. Keep up with all the latest breaking news and trading ideas by following Benzinga on Twitter. Photo by Markus Spiske on Unsplash. See more from BenzingaClick here for options trades from BenzingaThe Past Week’s Notable Insider Buys: Biotech IPOs, Curiositystream, Greenbrier And MoreBenzinga’s Weekly Bulls And Bears: GameStop, Intel, Lyft, Tilray, Twitter And More© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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TipRanks
Solid Insider Buying Puts These 2 Stocks in Focus
Investors are constantly on the lookout for new opportunities. There are different ways to unearth a gem – from keeping a tab on the pros’ recommendations to watching technical indicators to tracking hedge fund activity. Another option is to follow in the footsteps of the corporate insiders. These are the company directors and officers whose positions give them greater depth and detail of knowledge about their own company. And better, the insiders are also responsible for company performance and share appreciation. The combination of knowledge and accountability makes insider trades uniquely informative for investors. TipRanks follows these trades, offering investors the Insiders’ Hot Stocks tool to ease the process. Investors can follow stocks, or insider trading strategies, to find the right choices for their own portfolios. Using this valuable information, we’ve pulled the stats on two stocks that have shown solid recent insider buys. Harley-Davidson (HOG) We’ll start with Harley-Davidson, one of the most recognizable brand names in the world, tied forever to the motorcycle segment of the auto industry. Harleys, being motorcycles, tend to see seasonal effects on sales and earnings, and that was visible even during the ‘corona year’ of 2020. The second quarter showed steep losses instead of the usual profits – an effect of the pandemic and its economic distortions – but the third quarter returned to profitability. The Q4 results, recently reported, covered colder months and again showed a loss. Turning to the insider trades on HOG, we find a million-dollar purchase by company President and CEO Jochen Zeitz. Zeitz bought a bloc of 30,800 shares with that transaction, conducted just days after the disappointing earnings report. Wedbush analyst James Hardiman sees a path forward for Harley, and is confident that the company can navigate its way out of its current difficulties. “While still down slightly, our January checks showed sequential improvement, lending credence to the notion that the 2020 weakness was primarily a function of a lack of available inventory; opening the door to some retail growth once dealers get a full allotment of new models. Following an improved inventory position, a narrowed price gap between new and used motorcycles, and a restructuring of the cost structure, better retail sales represent the missing link to the turnaround story,” Hardiman noted. To this end, Hardiman rates HOG an Outperform (i.e. Buy), and his $42 price target indicates it has room for ~15% upside in the coming year. (To watch Hardiman’s track record, click here) Overall, there are 10 recent reviews on Harley-Davidson, and they are evenly split – 5 Buys, and 5 Holds. This gives the stock a Moderate Buy analyst consensus rating. Meanwhile, HOG shares are trading at $36.40 and their $38.67 average price target implies an upside of 6% from that level. (See HOG stock analysis on TipRanks) Enterprise Financial Services (EFSC) Next up, Enterprise Financial Services, is a holding company whose subsidiary, Enterprise Bank and Trust, offers services for customers in California, Nevada, Arizona, New Mexico, Kansas, and Missouri. The company operates a network of 39 branches, and services include a full range of wealth management, including financial planning, estate planning, and investment management. Services are offered to both individuals and institutions. Enterprise is a small-cap company, with a market cap of $1.25 billion and over $359 million in annual revenue. The company saw 4Q20 revenues grow 12% year-over-year, reversing losses taken in the corona pandemic. EPS, at $1, was down 8% compared to the year-ago quarter, but up 44% sequentially. On the insider front, John Eulich, a Board member of Enterprise, made the recent insider buy here. He spent $273,525 to pick up a bloc of 7,500 shares. Analyst David Long, of Raymond James, sees reason for a bullish outlook here, noting: “Credit continued to improve and the bank remains well-prepared to deal with any losses with reserves over 2%. Net, we continue to view EFSC as a highly profitable, emerging Midwest regional bank with a well-diversified operating footprint and model that should continue to deliver solid credit metrics and superior profitability, regardless of the backdrop.” Long rates EFSC an Outperform (i.e. Buy), and gives the stock a $45 price target, suggesting an upside potential of 12% in the year ahead. (To watch Long’s track record, click here) Overall, EFSC shares get a unanimous thumbs up from the analyst consensus, with 3 recent Buy reviews adding up to a Strong Buy rating. The stock is priced at $40.02, while the $43.67 average price target indicates room for a 9% growth on the upside. (See EFSC stock analysis on TipRanks) To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
