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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.
In addition, insiders have a longer holding period than most, a critical aspect that investors should be aware of.
Three companies – Deere & Co. (DE - Free Report) , HEICO (HEI - Free Report) , and Genuine Parts (GPC - Free Report) – have all seen recent insider activity. For those interested in trading like the insiders, let’s take a closer look at each.
Deere & Co.
Illinois-based Deere is the world’s largest producer of agricultural equipment, manufacturing agricultural machinery since 1837 under its iconic John Deere brand and signature green and yellow color scheme. Tami Erwin, a Director, recently purchased roughly $250 thousand of Deere shares.
For those that seek income, Deere has that covered; the company’s annual dividend yields 1.3% with a sustainable payout ratio sitting at 17% of its earnings. Impressively, Deere’s payout has grown by more than 13% just over the last five years.
Image Source: Zacks Investment Research
Shares are cheap on a relative basis, with the current 11.9X forward earnings multiple sitting well below the 16.2X five-year median and the Zacks Industrial Products sector average. Shares carry a Style Score of “B” for Value.
Image Source: Zacks Investment Research
HEICO
HEICO is one of the world's leading manufacturers of Federal Aviation Administration-approved jet engine and aircraft component replacement parts. Lauren Mendelson, CEO, recently purchased roughly $40 thousand in shares.
The company posted results that came in above expectations in its latest release, exceeding the Zacks Consensus EPS Estimate by nearly 6%. Quarterly revenue totaled $687 million, 5% above expectations and improving 30% from the year-ago period.
Image Source: Zacks Investment Research
HEICO carries an impressive growth profile, with earnings forecasted to climb 15% in its current fiscal year on 22% higher revenues. The growth continues in FY24, with estimates calling for a further 15% improvement in earnings and a 7.7% revenue uptick.
Image Source: Zacks Investment Research
Genuine Parts
Genuine Parts, a Zacks Rank #2 (Buy), distributes automotive and industrial replacement parts and materials. A Director purchased roughly $375 thousand of GPC shares, reported earlier in June.
The company has seen positive earnings estimate revisions, with the trend particularly noteworthy for its current fiscal year.
Image Source: Zacks Investment Research
In addition, the company’s 32.5% trailing twelve-month return on equity is worth highlighting, reflecting higher efficiency in generating profits from existing assets relative to peers.
Image Source: Zacks Investment Research
Bottom Line
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?
And all three stocks above – Deere & Co. (DE - Free Report) , HEICO (HEI - Free Report) , and Genuine Parts (GPC - Free Report) – have seen recent insider activity.
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Insiders Are Jumping Into These 3 Stocks
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.
In addition, insiders have a longer holding period than most, a critical aspect that investors should be aware of.
Three companies – Deere & Co. (DE - Free Report) , HEICO (HEI - Free Report) , and Genuine Parts (GPC - Free Report) – have all seen recent insider activity. For those interested in trading like the insiders, let’s take a closer look at each.
Deere & Co.
Illinois-based Deere is the world’s largest producer of agricultural equipment, manufacturing agricultural machinery since 1837 under its iconic John Deere brand and signature green and yellow color scheme. Tami Erwin, a Director, recently purchased roughly $250 thousand of Deere shares.
For those that seek income, Deere has that covered; the company’s annual dividend yields 1.3% with a sustainable payout ratio sitting at 17% of its earnings. Impressively, Deere’s payout has grown by more than 13% just over the last five years.
Image Source: Zacks Investment Research
Shares are cheap on a relative basis, with the current 11.9X forward earnings multiple sitting well below the 16.2X five-year median and the Zacks Industrial Products sector average. Shares carry a Style Score of “B” for Value.
Image Source: Zacks Investment Research
HEICO
HEICO is one of the world's leading manufacturers of Federal Aviation Administration-approved jet engine and aircraft component replacement parts. Lauren Mendelson, CEO, recently purchased roughly $40 thousand in shares.
The company posted results that came in above expectations in its latest release, exceeding the Zacks Consensus EPS Estimate by nearly 6%. Quarterly revenue totaled $687 million, 5% above expectations and improving 30% from the year-ago period.
Image Source: Zacks Investment Research
HEICO carries an impressive growth profile, with earnings forecasted to climb 15% in its current fiscal year on 22% higher revenues. The growth continues in FY24, with estimates calling for a further 15% improvement in earnings and a 7.7% revenue uptick.
Image Source: Zacks Investment Research
Genuine Parts
Genuine Parts, a Zacks Rank #2 (Buy), distributes automotive and industrial replacement parts and materials. A Director purchased roughly $375 thousand of GPC shares, reported earlier in June.
The company has seen positive earnings estimate revisions, with the trend particularly noteworthy for its current fiscal year.
Image Source: Zacks Investment Research
In addition, the company’s 32.5% trailing twelve-month return on equity is worth highlighting, reflecting higher efficiency in generating profits from existing assets relative to peers.
Image Source: Zacks Investment Research
Bottom Line
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?
And all three stocks above – Deere & Co. (DE - Free Report) , HEICO (HEI - Free Report) , and Genuine Parts (GPC - Free Report) – have seen recent insider activity.