While insiders may sell their shareholdings for many reasons, such as personal needs for cash, they tend to buy more shares with one motive in mind – increase their exposure to the company. Insiders have an unparalleled view into their own firm, compared to a typical individual investor, which provide us with a good reason to take a closer look at their bullish sentiment.
Summit Midstream Partners, LP (NYSE:SMLP)
Summit Midstream Partners, LP focuses on owning, developing, and operating midstream energy infrastructure assets primarily shale formations in the continental United States. The company was established in 2009 and has a market cap of USD $1.15B, putting it in the small-cap group.
Summit Midstream Partners LP (NYSE:SMLP) is one of United States’s large-cap stocks that saw some insider buying over the past three months, with insiders investing in 15,000 shares during this period. In total, individual insiders own less than one million shares in the business, or around 0.65% of total shares outstanding.
The insider that recently bought more shares is Steven Newby (management and board member) .
Summit Midstream Partners’s shares ranged between $20.05 and $13.1 over the past three months. This suggests a relatively high volatility with a large change of 53.05%, which could be enough of a reason to trade on if insiders believe the market has mispriced their companies’ shares. More on Summit Midstream Partners here.
Pacific Ethanol, Inc. (NASDAQ:PEIX)
Pacific Ethanol, Inc. produces and markets low-carbon renewable fuels in the United States. Formed in 2003, and currently headed by CEO Neil Koehler, the company size now stands at 560 people and with the market cap of USD $148.96M, it falls under the small-cap stocks category.
Pacific Ethanol Inc’s (NASDAQ:PEIX) insiders have invested 52,000 shares in the small-cap stocks within the past three months. In total, individual insiders own over 1 million shares in the business, which makes up around 3% of total shares outstanding.
Insiders that have recently ramped up their holdings are: Bryon McGregor (management and board member) . , Larry Layne (management) . , Michael Kandris (management and board member) . , Neil Koehler (board member) . and Paul Koehler (management) .
With a relatively flat top-line forecasted for the upcoming year, but a robust earnings growth rate of 63.76%, insiders may have strong conviction in management’s cost initiatives moving forward. This underlying driver of growth could be one of the reasons why insiders have bought more shares over the past couple of months. More on Pacific Ethanol here.
Victory Capital Holdings, Inc. (NASDAQ:VCTR)
Victory Capital Holdings, Inc., together with its subsidiaries, operates as an independent investment management company in the United States. Started in 2013, and run by CEO David Brown, the company provides employment to 267 people and with the market cap of USD $694.46M, it falls under the small-cap stocks category.
Victory Capital Holdings Inc (NASDAQ:VCTR) is one of United States’s small-cap stocks that saw some insider buying over the past three months, with insiders investing in 21,071 shares during this period. In total, individual insiders own over 78 million shares in the business, which makes up around 115.12% of total shares outstanding.
Latest buying activities involved the following insiders: James Hawkes (board member) . and Lawrence Davanzo (board member) .
With a notable expected earnings growth rate of 149.00% in the upcoming year, the current bullish sentiment around the company’s outlook may be a key driver for insiders to rally behind their own stock if they believe this growth potential has not yet been properly factored into the share price. More on Victory Capital Holdings here.
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.