Investors closely monitor insider buys.
It’s easy to understand why; if an insider buys, it can deliver a positive message to shareholders, indicating that they’re confident in the long-term picture of the business.
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.
Many strict rules apply to insiders.
Insiders can’t trade based on material nonpublic information, they must pre-clear all trades, and all transactions of the company’s stock must occur during the Window Period.
Three stocks – Albemarle (ALB - Free Report) , Pfizer (PFE - Free Report) , and Enphase Energy (ENPH - Free Report) – have all seen recent insider activity.
Let’s take a closer look at how each currently stacks up.
Pfizer
Scott Gottlieb, a Director, has purchased 2,000 PFE shares throughout May so far, with the transactions totaling roughly $76 thousand.
Pfizer posted quarterly results that came in well above expectations on May 8th, exceeding the Zacks Consensus EPS Estimate by more than 20% and delivering a positive 8% revenue beat. Despite the double beat, PFE shares faced selling pressure post-earnings.
In addition, Pfizer shares aren’t expensive on a relative basis, with the current 11.5X forward earnings multiple sitting nicely beneath the 12.4X five-year median and highs of 13.5X just last year.
The company sports a Style Score of “A” for Value.
For those seeking an income stream, Pfizer has that covered; the company’s annual dividend presently yields a rock-solid 4.3%, with the payout growing 3.9% over the last five years.
As shown below, the current yield is more than double the Zacks Medical sector average.
Albemarle
On May 5th, CEO Kent Masters purchased roughly 5,400 Albemarle shares at a price tag of $181.64 per share, totaling nearly $1 million.
The company has been a big beneficiary of elevated lithium prices, with earnings forecasted to climb 14% on 40% higher revenues in its current fiscal year. The growth tapers off in FY24, with earnings forecasted to pullback roughly 6%.
And similar to PFE, Albemarle shares provide a passive income stream, with the annual dividend currently yielding 0.8%. While the yield may be currently on the lower end, the company is committed to increasingly rewarding its shareholders, as shown in the chart below.
Enphase Energy
Mandy Yang, CFO, and VP, has purchased 3000 ENPH shares throughout May, with the transaction totaling roughly $550 thousand. Perhaps to the surprise of some, Enphase Energy shares have been big-time market outperformers over the last five years, delivering a sizable 3000% gain.
Enphase boasts a stellar growth profile, with earnings forecasted to soar 20% in its current fiscal year (FY23) and a further 35% in FY24. The projected earnings growth comes on top of forecasted Y/Y revenue upticks of 33% in FY23 and 25% in FY24.
Bottom Line
Insiders have a longer-term holding horizon than most, a critical aspect that market participants should be aware of. Nonetheless, it’s always reassuring to see an insider step in and buy.
After all, why would an insider buy shares if they weren’t confident?
All three stocks above – Albemarle (ALB - Free Report) , Pfizer (PFE - Free Report) , and Enphase Energy (ENPH - Free Report) – have seen recent insider activity.
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Investors closely monitor insider buys.
It’s easy to understand why; if an insider buys, it can deliver a positive message to shareholders, indicating that they’re confident in the long-term picture of the business.
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.
Many strict rules apply to insiders.
Insiders can’t trade based on material nonpublic information, they must pre-clear all trades, and all transactions of the company’s stock must occur during the Window Period.
Three stocks – Albemarle (ALB - Free Report) , Pfizer (PFE - Free Report) , and Enphase Energy (ENPH - Free Report) – have all seen recent insider activity.
Let’s take a closer look at how each currently stacks up.
Pfizer
Scott Gottlieb, a Director, has purchased 2,000 PFE shares throughout May so far, with the transactions totaling roughly $76 thousand.
Pfizer posted quarterly results that came in well above expectations on May 8th, exceeding the Zacks Consensus EPS Estimate by more than 20% and delivering a positive 8% revenue beat. Despite the double beat, PFE shares faced selling pressure post-earnings.
In addition, Pfizer shares aren’t expensive on a relative basis, with the current 11.5X forward earnings multiple sitting nicely beneath the 12.4X five-year median and highs of 13.5X just last year.
The company sports a Style Score of “A” for Value.
For those seeking an income stream, Pfizer has that covered; the company’s annual dividend presently yields a rock-solid 4.3%, with the payout growing 3.9% over the last five years.
As shown below, the current yield is more than double the Zacks Medical sector average.
Albemarle
On May 5th, CEO Kent Masters purchased roughly 5,400 Albemarle shares at a price tag of $181.64 per share, totaling nearly $1 million.
The company has been a big beneficiary of elevated lithium prices, with earnings forecasted to climb 14% on 40% higher revenues in its current fiscal year. The growth tapers off in FY24, with earnings forecasted to pullback roughly 6%.
And similar to PFE, Albemarle shares provide a passive income stream, with the annual dividend currently yielding 0.8%. While the yield may be currently on the lower end, the company is committed to increasingly rewarding its shareholders, as shown in the chart below.
Enphase Energy
Mandy Yang, CFO, and VP, has purchased 3000 ENPH shares throughout May, with the transaction totaling roughly $550 thousand. Perhaps to the surprise of some, Enphase Energy shares have been big-time market outperformers over the last five years, delivering a sizable 3000% gain.
Enphase boasts a stellar growth profile, with earnings forecasted to soar 20% in its current fiscal year (FY23) and a further 35% in FY24. The projected earnings growth comes on top of forecasted Y/Y revenue upticks of 33% in FY23 and 25% in FY24.
Bottom Line
Insiders have a longer-term holding horizon than most, a critical aspect that market participants should be aware of. Nonetheless, it’s always reassuring to see an insider step in and buy.
After all, why would an insider buy shares if they weren’t confident?
All three stocks above – Albemarle (ALB - Free Report) , Pfizer (PFE - Free Report) , and Enphase Energy (ENPH - Free Report) – have seen recent insider activity.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
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