10 Stocks Insiders and Billionaires Are Crazy About
In this article, we will take a look at the 10 stocks insiders and billionaires are crazy about. If you want to skip our discussion, you can see the top 5 Stocks Insiders and Billionaires Are Crazy About.
On June 5 former Fed vice chairman, Roger Ferguson, appeared in an interview on CNBC where he shared his insights on the economy and how he expects the Fed to move forward. Ferguson noted that the jobs report for May showed that the economy remains strong, despite showing a few weaker-than-expected elements. However, he emphasized that the overall narrative remains the same and the question now is whether there will be a pause in rate hikes. Ferguson noted that even if there is a pause in rate hikes, it will be to reassess the situation rather than signaling the end of the tightening cycle.
Regarding why the Fed might consider a pause despite the strong jobs report, Ferguson outlined three factors. First, the Fed has already implemented significant monetary tightening, which could prompt a pause to evaluate the impact and gather more information. Second, although the overall economy demonstrates strength, there is a slight uptick in the unemployment rate. While he cautioned against overemphasizing this development, it could contribute to the case for a pause. Lastly, with the debt ceiling issue resolved, the Treasury will be borrowing money, leading to rising interest rates and tighter financial conditions. Ferguson believes that these factors, in combination, may lead to a pause with a "60-40, go versus pause discussion".
Ferguson commented about the possibility of a mild to moderate recession, or a soft landing, and expressed optimism in line with Fed chairman Jay Powell's comments. Despite previously leaning towards the likelihood of a recession, Ferguson acknowledged the economy's underlying strength which gives hope for withstanding rising interest rates and achieving a soft landing.
Ferguson also spoke about consumer strength and acknowledged the concerns being raised by bankers about excessive consumer spending. He pointed out that the labor market remains tight and wages have gone up by 4% to 5%. He also noted that though consumer spending remains strong, it is occurring against the backdrop of rising wages and a tight labor market. Ferguson believes that wage growth is one of the primary drivers behind the Fed's decision to continue its hiking cycle.
Regarding the unemployment rate, Ferguson highlighted that a low unemployment rate of around 3.8% is inconsistent with the Fed's inflation target of 2% and restoring stability in the economy. He noted that in order to achieve a more balanced economy and bring inflation down to the Fed's target of 2%, the unemployment rate might need to rise above 4%. Ferguson stressed the significance of wage growth as a more accurate gauge for the Fed's concerns and noted that recent wage reports suggest that the current wage levels are still inconsistent with reaching the Fed's target of 2%.
Moving forward, Ferguson expects one or two more rate hikes within the next three meetings before a potential pause. Additionally, he cautioned against perceiving a pause as an indication of the end of the tightening cycle. Instead, he emphasized that it will lead to a wait-and-see period, contingent upon incoming data.
As we navigate through the Fed's decision-making process and its implications for the broader economy, it becomes increasingly important to consider insider activity in the stock market. The actions of insiders, including billionaires and individuals with in-depth knowledge of a company's operations, can offer a glimpse into market sentiment and confidence. By closely analyzing insider activity and where hedge funds and billionaires are putting their money to work at, investors can gain a deeper understanding of the outlook of specific companies. Some of the most notable stocks that insiders and billionaires are crazy about right now include Advance Auto Parts, Inc. (NYSE:AAP), Genuine Parts Company (NYSE:GPC), and HEICO Corporation (NYSE:HEI). Let's now discuss these stocks, among others, in detail below.
Photo by nick chong on Unsplash
Our Methodology
To determine the top stocks that insiders and billionaires are crazy about, we used Insider Monkey’s insider trading screener to screen for stocks that have been bought by at least 2 corporate insiders over the past 2 weeks. We sorted our screen by transaction amount and narrowed down our selection to stocks that have been heavily bought by insiders. We then used Insider Monkey's proprietary database to further narrow down our list and find stocks that are the most popular among billionaires. We also sourced the hedge fund sentiment for each stock. We have ranked these stocks in ascending order of their popularity among billionaires.
10 Stocks Insiders and Billionaires Are Crazy About
10. Ziff Davis, Inc. (NASDAQ:ZD)
Number of Billionaire Investors: 5
Dollar Value of Billionaire Holdings: $15,476,455
Number of Hedge Fund Holders: 17
Ziff Davis, Inc. (NASDAQ:ZD) is an American internet company that operates through two segments: Digital Media and Cybersecurity & Martech. At the end of Q1 2023, 17 hedge funds were long Ziff Davis, Inc. (NASDAQ:ZD) and held stakes worth $238.9 million in the company. Of those, Cardinal Capital was the largest investor in the company and disclosed a position worth $105.7 million.
Insiders are racking up shares of Ziff Davis, Inc. (NASDAQ:ZD). On May 30, the company disclosed that its CEO Vivek Shah bought 10,000 company shares for a total transaction valued at $588,577. Then on May 31, the company's CFO Bret Richter purchased 2000 shares of the company's stock for a total transaction valued at roughly $118,200. The same day, the company's executive vice president Jeremy Rossen acquired 1000 company shares for a total transaction of $58,450.
In addition to corporate insiders, billionaires are also pouring into Ziff Davis, Inc. (NASDAQ:ZD). At the close of Q1 2023, 5 billionaires held stakes in the company worth $15.4 million. Ziff Davis, Inc. (NASDAQ:ZD) is one of the top stocks that insiders and billionaires are crazy about.
Meridian Funds made the following comment about Ziff Davis, Inc. (NASDAQ:ZD) in its Q4 2022 investor letter:
“Ziff Davis, Inc. (NASDAQ:ZD), is a leading internet and software services company, operating through two segments: business cloud services and digital media. The combined company has grown revenues for 25 consecutive years with high margins and attractive returns on invested capital. The cloud services business provides niche products to small and mid-sized businesses and enjoys a high percentage of recurring revenues, low churn, and high margins. Ziff Davis’ digital media business generates revenue through subscriptions to websites it owns, including tech, entertainment, and culture site Mashable, and through advertising on those sites. Ziff Davis’ advertising business model is unique in that it is almost entirely performance-based, as opposed to other sites that rely heavily on banner advertisements. Furthermore, while companies that rely on tracking users’ online behaviors to target advertising must navigate stronger privacy rules and regulations, Ziff Davis does not use tracking technology, so it has no exposure to the related operational and financial challenges presented by the tougher rules. In addition, part of our initial attraction to Ziff Davis was its successful track record of acquiring undermanaged companies and them to significantly increase profitability. In what has become an ideal market for acquirers, Ziff Davis has more than $600 million in cash and the patience to wait for acquisition opportunities that meet its recently increased threshold for potential returns. During the period, we slightly trimmed our position as the share price appreciated.”
9. Genesco Inc. (NYSE:GCO)
Number of Billionaire Investors: 6
Dollar Value of Billionaire Holdings: $7,800,221
Number of Hedge Fund Holders: 15
Genesco Inc. (NYSE:GCO) is an American retailer of footwear, apparel, and accessories. At the end of the first quarter of 2023, 6 billionaires were bullish on Genesco Inc. (NYSE:GCO) and disclosed positions worth $7.8 million in the company. The stock is placed ninth on our list of the top stocks that insiders and billionaires are crazy about.
In addition to billionaires, insiders are racking up shares of Genesco Inc. (NYSE:GCO) as well. On May 30, the company's senior vice president Danny Ewoldsen bought 1,545 company shares at $19.31 per share. The same day, the company's senior vice president and CFO Thomas A. George purchased 5,402 shares of the company for a total transaction amount of over $100,200. Additionally, the company's CEO Mimi E. Vaughn acquired 10,000 company shares for a transaction valued at over $188,500. On June 5, the company disclosed that its director, Matthew C. Diamond, purchased 17,500 shares of the company's stock at $17.85 per share.
At the close of the Q1 2023, 15 hedge funds were eager on Genesco Inc. (NYSE:GCO) and disclosed stakes worth $40 million in the company. As of March 31, Legion Partners Asset Management is the leading investor in the company and has a position worth $15,4 million.
Other notable stocks that are on the radars of insiders and billionaires include Advance Auto Parts, Inc. (NYSE:AAP), Genuine Parts Company (NYSE:GPC), and HEICO Corporation (NYSE:HEI).
8. Four Corners Property Trust, Inc. (NYSE:FCPT)
Number of Billionaire Investors: 6
Dollar Value of Billionaire Holdings: $27,122,768
Number of Hedge Fund Holders: 11
Four Corners Property Trust, Inc. (NYSE:FCPT) is an American real estate investment trust (REIT) involved in the restaurant and retail industries. Insiders are piling into Four Corners Property Trust, Inc. (NYSE:FCPT). On June 6, the company disclosed that its president and CEO William Lenehan bought 7,600 company shares at $26.06 per share. On June 7, the company's director Douglas B. Hansen purchased 9,425 shares of the company's stock for a total transaction of over $250,000.
In addition to insiders, billionaires are also making hefty investments in Four Corners Property Trust, Inc. (NYSE:FCPT). According to Insider Monkey's database, 6 billionaires held stakes in the company at the end of Q1 2023. The total value of these stakes amounted to $27.1 million. Four Corners Property Trust, Inc. (NYSE:FCPT) is one of the top stocks insiders and billionaires are crazy about.
At the close of Q1 2023, 11 hedge funds held positions in Four Corners Property Trust, Inc. (NYSE:FCPT) worth $47.2 million. Of those, Marshall Wace LLP was the top stockholder in the company and disclosed a stake worth $18.8 million.
7. Hibbett, Inc. (NASDAQ:HIBB)
Number of Billionaire Investors: 7
Dollar Value of Billionaire Holdings: $13,692,413
Number of Hedge Fund Holders: 17
Hibbett, Inc. (NASDAQ:HIBB) is a leading retailer of sporting goods. At the close of Q1 2022, 17 hedge funds held stakes in the company worth $76 million. As of March 31, Bronte Capital is the largest shareholder in Hibbett, Inc. (NASDAQ:HIBB) and has a position worth $30.6 million.
Insiders and billionaires are crazy about Hibbett, Inc. (NASDAQ:HIBB). On May 31, the company disclosed that its CEO Mike Longo acquired 7,500 company shares for a total transaction valued at $271,275. On June 2, the company's vice president and general counsel David Benck purchased 2,000 shares of the company at $36.09 per share for a transaction amount of $72,180.
At the end of Q1 2023, 7 billionaires were bullish on Hibbett, Inc. (NASDAQ:HIBB) and disclosed positions worth $13.6 million.
6. Huntington Bancshares Incorporated (NASDAQ:HBAN)
Number of Billionaire Investors: 7
Dollar Value of Billionaire Holdings: $179,074,561
Number of Hedge Fund Holders: 31
At the close of Q1 2023, 7 billionaires held stakes in Huntington Bancshares Incorporated (NASDAQ:HBAN). The total value of these stakes amounted to $179 million.
Insiders are stacking up shares of Huntington Bancshares Incorporated (NASDAQ:HBAN). On May 30, the company disclosed that its chairman Gary Torgow purchased 23,680 shares of the company at $10.56 per share for a total transaction amount of $250,134. On May 31, the company's board member Rafael Andres Diaz-Granados bought 200 company shares at $10.35 per share. Huntington Bancshares Incorporated (NASDAQ:HBAN) is placed sixth among the stocks that insiders and billionaires are crazy about.
Huntington Bancshares Incorporated (NASDAQ:HBAN) was spotted on 31 investors' portfolios at the close of Q1 2023. These funds held collective stakes worth $313.5 million in the company. Of those, billionaire Ken Griffin's Citadel Investment Group was the largest shareholder in the company and disclosed a position worth $167.4 million.
In addition to Huntington Bancshares Incorporated (NASDAQ:HBAN), other stocks that are attracting the attention of insiders and billionaires alike include Advance Auto Parts, Inc. (NYSE:AAP), Genuine Parts Company (NYSE:GPC), and HEICO Corporation (NYSE:HEI).
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Disclosure: None. 10 Stocks Insiders and Billionaires Are Crazy About is originally published on Insider Monkey.
