Understanding Insider Buys
Do insiders have a crystal ball, or are they just very shrewd? Investors closely monitor insider buys. But who are ‘insiders’? An insider is defined by Section 16 of the Security Exchange Act as an officer, director, 10% stockholder, or anyone who possesses information because of their relationship with the company. Of course, many strict rules apply to insiders. Notably, they have a longer holding period than most, a critical aspect that investors should be aware of.
Post Holdings: Sailing on Strong Earnings
Post Holdings, a consumer-packaged goods holding company, has seen recent insider buying. This Zacks Rank #1 (Strong Buy) stock boasts positive earnings expectations across nearly all timeframes. A director recently acquired 1000 POST shares, signaling confidence in the company’s future. The recent earnings release, which outperformed estimates and posted a significant beat, has propelled the stock higher. The rebound in the company’s revenue post-pandemic is another encouraging sign for investors.
Casey’s General Stores: A Director’s Bet
Casey’s General Stores, operating convenience stores in the Midwest, witnessed a director purchasing 725 CASY shares, revealing a vote of confidence in the company’s trajectory. This Zacks Rank #1 (Strong Buy) stock not only has positive earnings momentum but also trades at a slight discount relative to historical levels and carries a Style Score of ‘B’ for Value. These factors make the stock an enticing prospect for investors.
Aon: A Multinational Corporation Making Waves
Aon, a multinational corporation offering risk management services, insurance, and reinsurance brokerage, recently caught attention as a director acquired 50k shares worth roughly $7.5 million. With robust dividend growth and a sustainable payout ratio, Aon demonstrates a shareholder-friendly approach. Additionally, the company is expected to enjoy solid growth, making it an intriguing option for investors.
Insider Activity: A Source of Confidence
Why do insiders buy shares? Many investors closely monitor insider buys, as they can provide a high level of confidence. After all, if an insider didn’t believe in the company’s future pathway, why would they buy? The recent insider activity in Post Holdings, Casey’s General Stores, and Aon indicates that these companies have attracted the attention of insiders, potentially signaling positive future prospects for these stocks.