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Insider Shadowing: Buying Into CNX Resources And Others

Audra Newberry

Insiders buying more shares in their own company indicates confidence in management’s outlook in the future. Research from MIT suggests stocks that have recently seen insider buying outperformed the market by 4.5%. These insiders have rare insights into the underlying business, so they are well-placed to profit from potential changes moving forward. Should you followsuit? Below, I’ve chosen three NYSE companies which insiders have recently accumulated more shares in.

CNX Resources Corporation (NYSE:CNX)

CNX Resources Corporation, an independent oil and natural gas company, explores for, develops, and produces natural gas in the Appalachian Basin. Established in 1991, and run by CEO Nicholas DeIuliis, the company size now stands at 561 people and with the company’s market capitalisation at USD $3.51B, we can put it in the mid-cap category.

CNX Resources Corporation’s (NYSE:CNX) insiders have invested more than 5 million shares in the large-cap stocks within the past three months. In total, individual insiders own over 2 million shares in the business, which makes up around 0.72% of total shares outstanding.

Insiders that have recently ramped up their holdings are: Maureen Lally-Green (board member) . and William Thorndike (board member) .

The entity that bought on the open market in the last three months was

Southeastern Asset Management Inc.. Although this is an institutional investor, rather than a company executive or board member, the insights gained from direct access to management as a large investor would make it more well-informed than the average retail investor. In this specific instance, I would classify this investor as a company insider.

With revenues predicted to grow at 13.01% each year for the next couple of years, driving an impressive earnings growth of 16.44%, insiders may be buying based on CNX’s optimistic outlook which they believe are not yet priced into the stock. More on CNX Resources here.

NYSE:CNX Insider_trading Mar 28th 18

Genesco Inc. (NYSE:GCO)

Genesco Inc. retails and wholesales footwear, apparel, and accessories. Established in 1924, and currently headed by CEO Robert Dennis, the company size now stands at 17,313 people and has a market cap of USD $789.56M, putting it in the small-cap group.

Genesco Inc’s (NYSE:GCO) insiders have invested 318,947 shares in the small-cap stocks within the past three months. In total, individual insiders own less than one million shares in the business, or around 4.28% of total shares outstanding.

The entity that bought on the open market in the last three months was

4010 Capital LLC Legion Partners LLC. Although this is an institutional investor, rather than a company executive or board member, the insights gained from direct access to management as a large investor would make it more well-informed than the average retail investor. In this specific instance, I would classify this investor as a company insider.

Analysts anticipate a relatively flat top-line growth year-on-year over the next couple of years. However, earnings are predicted to grow at an impressive rate of 84.29% in the upcoming year, from today’s level, which could indicate the company’s cost controls will show meaningful results, offsetting the slow revenue growth. Insiders may have confidence in these cost initiatives, or believe the market has overly penalized the company’s shares, leading to an opportune time to buy. More detail on Genesco here.

NYSE:GCO Insider_trading Mar 28th 18

Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY)

Dave & Buster’s Entertainment, Inc. owns and operates entertainment and dining venues for adults and families in North America. Started in 1982, and now run by Stephen King, the company provides employment to 13,983 people and with the company’s market cap sitting at USD $1.70B, it falls under the small-cap stocks category.

Dave & Buster’s Entertainment Inc’s (NASDAQ:PLAY) insiders have invested 15,000 shares in the large-cap stocks within the past three months. In total, individual insiders own less than one million shares in the business, or around 1.77% of total shares outstanding.

Latest buying activities involved the following insiders: Kevin Sheehan (board member) . and Michael Griffith (board member) .

Dave & Buster’s Entertainment’s shares ranged between $57.37 and $41.21 over the past three months. This indicates a fairly large volatility with a share price movement of 39.21%, which could be enough of a reason to trade on if insiders believe the market has mispriced their companies’ shares. More detail on Dave & Buster’s Entertainment here.

NasdaqGS:PLAY Insider_trading Mar 28th 18

For more stocks with high, positive trading volume by insiders, explore this interactive list of stocks with recent insider buying.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.