Company executives, directors and large existing shareholders ramping up shares in a particular company could signal higher confidence in the future outlook of the business. Generally, when insiders buy, their stock tends to outperform the market afterwards (The MIT Press, 1998). Should you followsuit? Below, I’ve chosen three NYSE companies which insiders have recently accumulated more shares in.
Key Energy Services, Inc. (NYSE:KEG)
Key Energy Services, Inc. operates as an onshore rig-based well servicing contractor. Founded in 1977, and now run by Robert Drummond, the company now has 3,225 employees and has a market cap of USD $268.87M, putting it in the small-cap group.
Key Energy Services Inc (NYSE:KEG) is one of United States’s small-cap stocks that saw some insider buying over the past three months, with insiders investing in 25,000 shares during this period. In total, individual insiders own less than one million shares in the business, or around 0.62% of total shares outstanding.
The insider that recently bought more shares is Scott Vogel (board member) .
Within the past three months, Key Energy Services’s share price traded at a high of $17.34 and a low of $8.72. This indicates meaningful movements in the share price, with a change of 98.85%, which could be a reason why insiders have decided to increase their shareholdings. Continue research on Key Energy Services here.
Vista Outdoor Inc. (NYSE:VSTO)
Vista Outdoor Inc. designs, manufactures, and markets consumer products for outdoor sports and recreation markets worldwide. Formed in 2014, and currently headed by CEO Christopher Metz, the company size now stands at 6,400 people and has a market cap of USD $844.38M, putting it in the small-cap stocks category.
Vista Outdoor Inc (NYSE:VSTO) is one of United States’s small-cap stocks that saw some insider buying over the past three months, with insiders investing in 18,000 shares during this period. In total, individual insiders own less than one million shares in the business, or around 0.99% of total shares outstanding.
Insiders that have recently bought more shares are: Christopher Metz (board member) . , Mark Gottfredson (board member) . , Michael Callahan (board member) . and Tig Krekel (management and board member) .
With a noteworthy forecasted bottom-line growth rate of 94.14% in the upcoming year, the present positive sentiment around the company’s future may be a main driver for insiders to ramp up their own shareholdings, if they believe this growth prospect has not yet been accounted for in the current share price. More on Vista Outdoor here.
Cardtronics plc (NASDAQ:CATM)
Cardtronics plc provides automated consumer financial services through its network of automated teller machines (ATMs) and multi-function financial services kiosks. Started in 1989, and headed by CEO Edward West, the company currently employs 1,734 people and with the stock’s market cap sitting at USD $1.14B, it comes under the small-cap stocks category.
Cardtronics plc’s (NASDAQ:CATM) insiders have invested more than 4 million 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 1.73% of total shares outstanding.
Insiders that have recently bought more shares are: Dennis Lynch (board member) . , Edward West (management and board member) . and Mark Rossi (board member) .
The entity that bought on the open market in the last three months was
Hudson Executive Capital LP. 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 decline in the top-line next year, which could imply some headwinds going forward. Though, next year’s expected earnings growth of 90.74% could indicate the company’s cost controls will show meaningful results, offsetting the fall in 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 on Cardtronics here.
For more stocks with high, positive trading volume by insiders, take a look at our free platform to explore the 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.