By monitoring insider activity, investors can gain insights into management's confidence in the company's direction and prospects.
And, of course, insiders have more in-depth knowledge about the company's operations, financials, and current standing. If they weren’t confident, why would they buy?
Recently, insiders of two companies – CVS Health (CVS - Free Report) and Akamai Technologies (AKAM - Free Report) – have been busy scooping up shares. What did the insiders see? Let’s take a closer look.
CVS Health
In early May, CEO Karen Lynch purchased approximately 14,000 CVS shares, with the transaction totaling nearly $1 million.
CVS shares aren’t expensive, with the current 7.7X forward earnings multiple sitting nicely beneath the 9.9X five-year median and the Zacks Retail and Wholesale sector average.
The stock carries a Style Score of “A” for Value.
In addition, shares pay a solid dividend, currently yielding 3.6% annually with a sustainable payout ratio of 28% of earnings. The payout has grown by a modest 2.7% over the last five years.
The purchase comes on the heels of a better-than-expected quarterly print; CVS exceeded the Zacks Consensus EPS Estimate by 8% and delivered a 4.5% revenue surprise in its latest release on May 3rd.
Akamai Technologies
Akamai Technologies is a global provider of content delivery networks and cloud infrastructure services. Frank Leighton, CEO, has been on a big purchasing spree, buying roughly $200 thousand of AKAM shares just in May.
The stock presently sports a favorable Zacks Rank #2 (Buy), with earnings expectations modestly increasing across nearly all timeframes.
AKAM shares got a solid boost in its latest release post-earnings, as we can see illustrated by the green arrow circled in the chart below.
Regarding the mentioned quarter, the company posted a double-beat, exceeding the Zacks Consensus EPS Estimate by 6% and posting a marginal revenue surprise. Below is a chart illustrating the company’s revenue on a quarterly basis.
Bottom Line
Insiders have a longer-term holding horizon than most, a critical aspect that market participants should know. Nonetheless, seeing an insider step in and buy is always reassuring.
That’s precisely what the CEOs of both companies above – CVS Health (CVS - Free Report) and Akamai Technologies (AKAM - Free Report) – have done recently.
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By monitoring insider activity, investors can gain insights into management's confidence in the company's direction and prospects.
And, of course, insiders have more in-depth knowledge about the company's operations, financials, and current standing. If they weren’t confident, why would they buy?
Recently, insiders of two companies – CVS Health (CVS - Free Report) and Akamai Technologies (AKAM - Free Report) – have been busy scooping up shares. What did the insiders see? Let’s take a closer look.
CVS Health
In early May, CEO Karen Lynch purchased approximately 14,000 CVS shares, with the transaction totaling nearly $1 million.
CVS shares aren’t expensive, with the current 7.7X forward earnings multiple sitting nicely beneath the 9.9X five-year median and the Zacks Retail and Wholesale sector average.
The stock carries a Style Score of “A” for Value.
In addition, shares pay a solid dividend, currently yielding 3.6% annually with a sustainable payout ratio of 28% of earnings. The payout has grown by a modest 2.7% over the last five years.
The purchase comes on the heels of a better-than-expected quarterly print; CVS exceeded the Zacks Consensus EPS Estimate by 8% and delivered a 4.5% revenue surprise in its latest release on May 3rd.
Akamai Technologies
Akamai Technologies is a global provider of content delivery networks and cloud infrastructure services. Frank Leighton, CEO, has been on a big purchasing spree, buying roughly $200 thousand of AKAM shares just in May.
The stock presently sports a favorable Zacks Rank #2 (Buy), with earnings expectations modestly increasing across nearly all timeframes.
AKAM shares got a solid boost in its latest release post-earnings, as we can see illustrated by the green arrow circled in the chart below.
Regarding the mentioned quarter, the company posted a double-beat, exceeding the Zacks Consensus EPS Estimate by 6% and posting a marginal revenue surprise. Below is a chart illustrating the company’s revenue on a quarterly basis.
Bottom Line
Insiders have a longer-term holding horizon than most, a critical aspect that market participants should know. Nonetheless, seeing an insider step in and buy is always reassuring.
That’s precisely what the CEOs of both companies above – CVS Health (CVS - Free Report) and Akamai Technologies (AKAM - Free Report) – have done recently.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks<<
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