We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Insider purchases are frequently closely followed by investors. After all, it's easy to see why these transactions are so significant; it's always reassuring when a well-known name invests more.
Section 16 of the Securities Exchange Act defines an insider as an officer, director, 10% stockholder, or anyone who has information because of their relationship with the company.
Insiders are subject to a slew of rules, as one would expect.
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; the Window Period opens on the second trading day following the company’s quarterly or annual earnings release and closes 20 days later.
Further, insiders are prohibited from selling short and trading, writing, or purchasing “put” or “call” options on the company’s stock whether or not such options are traded on an exchange.
Finally, insiders must disclose purchases, sales, and holdings of their company's securities by filing SEC Forms 3, 4, and 5.
Below is a chart illustrating the share performance of all three companies in 2022, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
Let’s take a deeper dive into each one.
Fastenal
Fastenal is a national wholesale distributor of industrial and construction supplies. The company distributes its products through more than 3,200 company-owned stores.
Daniel Florness, CEO and President of Fastenal, purchased 5000 FAST shares in September for an overall cost of approximately $240,000.
The company carries a solid growth profile; earnings are forecasted to climb 16.3% in FY22 and a further 3% in FY23. FAST’s top line is also in exceptional health, with revenue estimates calling for 15% and 3.8% growth in FY22 and FY23, respectively.
Image Source: Zacks Investment Research
Owning FAST shares comes with several perks, and dividends are one of those; FAST’s 2.7% annual dividend yield is notably higher than its Zacks Retail and Wholesale sector average of 1.1%.
Image Source: Zacks Investment Research
Adobe
Adobe is one of the biggest software companies in the world, generating the bulk of its revenue via licensing fees from its customers.
David Ricks, an Adobe Director, purchased 1200 ADBE shares in September for approximately $336,000.
Daniel Durn, EVP, and CFO, also joined in on the fun, buying 3250 ADBE shares for an overall cost of roughly $936,000.
ADBE shares are still rather expensive, trading at a 25.9X forward earnings multiple. However, the current value is nearly half its five-year median of 45.3X.
Image Source: Zacks Investment Research
Rocket Companies
Rocket Companies is a holding company consisting of personal finance and consumer service brands, including Rocket Mortgage, Rocket Homes, and Rocket Loans, to name a few.
Jay Farner, CEO, has bought aggressively throughout 2022, now owning a massive total of roughly 4.6 million RKT shares.
RKT has struggled to exceed quarterly estimates, falling short of the Zacks Consensus EPS Estimate in three consecutive quarters.
Top line results have been notably stronger, with the company penciling in five revenue beats over its last eight quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Bottom Line
Insider buys are widely followed by investors and for valid reasons. If an insider buys, it could only mean one thing – they expect shares to move upwards.
While price action in 2022 has been primarily disheartening, insiders of all three companies – Fastenal (FAST - Free Report) , Adobe (ADBE - Free Report) , and Rocket Companies (RKT - Free Report) – have been on the offensive, buying shares at a discount.
Still, investors need to know that insiders have a much longer holding horizon than most.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Insiders Have Bought These 3 Stocks in 2022
Insider purchases are frequently closely followed by investors. After all, it's easy to see why these transactions are so significant; it's always reassuring when a well-known name invests more.
Section 16 of the Securities Exchange Act defines an insider as an officer, director, 10% stockholder, or anyone who has information because of their relationship with the company.
Insiders are subject to a slew of rules, as one would expect.
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; the Window Period opens on the second trading day following the company’s quarterly or annual earnings release and closes 20 days later.
Further, insiders are prohibited from selling short and trading, writing, or purchasing “put” or “call” options on the company’s stock whether or not such options are traded on an exchange.
Finally, insiders must disclose purchases, sales, and holdings of their company's securities by filing SEC Forms 3, 4, and 5.
Insiders have purchased Adobe (ADBE - Free Report) , Fastenal (FAST - Free Report) , and Rocket Companies (RKT - Free Report) shares in 2022.
Below is a chart illustrating the share performance of all three companies in 2022, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
Let’s take a deeper dive into each one.
Fastenal
Fastenal is a national wholesale distributor of industrial and construction supplies. The company distributes its products through more than 3,200 company-owned stores.
Daniel Florness, CEO and President of Fastenal, purchased 5000 FAST shares in September for an overall cost of approximately $240,000.
The company carries a solid growth profile; earnings are forecasted to climb 16.3% in FY22 and a further 3% in FY23. FAST’s top line is also in exceptional health, with revenue estimates calling for 15% and 3.8% growth in FY22 and FY23, respectively.
Image Source: Zacks Investment Research
Owning FAST shares comes with several perks, and dividends are one of those; FAST’s 2.7% annual dividend yield is notably higher than its Zacks Retail and Wholesale sector average of 1.1%.
Image Source: Zacks Investment Research
Adobe
Adobe is one of the biggest software companies in the world, generating the bulk of its revenue via licensing fees from its customers.
David Ricks, an Adobe Director, purchased 1200 ADBE shares in September for approximately $336,000.
Daniel Durn, EVP, and CFO, also joined in on the fun, buying 3250 ADBE shares for an overall cost of roughly $936,000.
ADBE shares are still rather expensive, trading at a 25.9X forward earnings multiple. However, the current value is nearly half its five-year median of 45.3X.
Image Source: Zacks Investment Research
Rocket Companies
Rocket Companies is a holding company consisting of personal finance and consumer service brands, including Rocket Mortgage, Rocket Homes, and Rocket Loans, to name a few.
Jay Farner, CEO, has bought aggressively throughout 2022, now owning a massive total of roughly 4.6 million RKT shares.
RKT has struggled to exceed quarterly estimates, falling short of the Zacks Consensus EPS Estimate in three consecutive quarters.
Top line results have been notably stronger, with the company penciling in five revenue beats over its last eight quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Bottom Line
Insider buys are widely followed by investors and for valid reasons. If an insider buys, it could only mean one thing – they expect shares to move upwards.
While price action in 2022 has been primarily disheartening, insiders of all three companies – Fastenal (FAST - Free Report) , Adobe (ADBE - Free Report) , and Rocket Companies (RKT - Free Report) – have been on the offensive, buying shares at a discount.
Still, investors need to know that insiders have a much longer holding horizon than most.