3 Unusual Insider Transactions you Should Know About

Insider Transactions Analysis Can Help with ConvictionInsider transactions, particularly insider buys, are a valuable tool for investors to monitor because they can provide insight into how the company’s management team feels about the company’s future. Additionally, insider buy transactions may provide peace of mind for investors, signaling that management has skin in the game and is willing to bet on themselves.For instance, in a March 25th article, I pointed out that two IonQ (IONQ) insiders made unusually large purchases of IONQ stock. The insider buys were particularly attention-grabbing for a few reasons, including the larger-than-normal size of the transactions and the fact that more than one insider was buying shares. Since then, shares have risen nearly 60% and have doubled in value at one point.  Image Source: Zacks Investment ResearchInsider Trades: What to look forInvestors need to understand that when it comes to analyzing insider transactions, not all are equal. Insider buys typically hold more weight for investors because insiders only buy stock for one reason – they believe the share price will increase. Conversely, insider sales are less meaningful because insiders may have pre-planned sales or may be selling stock for personal reasons (though there are, of course, exceptions to the rule). The two most important factors to look for are time and size. If an insider buys stock for the first time in years and buys a lot, it’s usually a good omen for the stock.3 Recent Insider Transactions to WatchHIMS CEO Makes Largest Insider Sale in Company HistoryRecent filings show that Hims and Hers (HIMS) CEO Andrew Dudum sold more than $30 million worth of HIMS stock. Unfortunately, the insider sale is not a one-off instance. Insiders have sold a combined $199 million worth of shares during the past year!Image Source: Zacks Investment ResearchIn addition to the troubling insider sells, HIMS has been a choppy, news-driven, and difficult stock to trade.LLY Insiders Buy the DipPharma giant Eli Lilly (LLY) shares suffered a 14% drop on August 7th after a worse-than-anticipated earnings report. However, a slew of LLY insiders see the dip as an opportunity to scoop up cheap shares. Since the EPS report, five insiders, including CEO David A. Ricks, bought nearly $3 million worth of stock. The large multiple buys may mean that the stock is nearing a bottom.Image Source: Zacks Investment ResearchTMDX CEO Bets BigThe latest insider transaction filings show that TransMedics Group (TMDX) CEO & President Waleed Hassanein bought nearly $2 million worth of his company’s stock. The transaction marks the first insider buy of the medical products company since 2023.Image Source: Zacks Investment ResearchBottom LineWhile no single indicator can guarantee a stock’s performance, the pattern of insider transactions can offer a powerful glimpse into a company’s prospects.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Eli Lilly and Company (LLY): Free Stock Analysis Report TransMedics Group, Inc. (TMDX): Free Stock Analysis Report Hims & Hers Health, Inc. (HIMS): Free Stock Analysis Report IonQ, Inc. (IONQ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks