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Insiders Are Buying These 5 Stocks

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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 investors should know.

Several companies – Dollar Tree (DLTR - Free Report) , Walgreens Boot Alliance (WBA - Free Report) , Synopsys (SNPS - Free Report) , Snowflake (SNOW - Free Report) , and lululemon Athletica (LULU - Free Report) – have all seen recent insider activity. Let’s take a closer look at the transactions for those interested in trading like the insiders.

Snowflake

Snowflake develops database architecture, data warehouses, query optimization, and parallelization solutions. The CEO recently swooped in and purchased roughly 31.5k shares, with a total transaction value just above $5 million.

Shares have had a tough showing following its latest set of quarterly results, down nearly 30% since the report date and widely underperforming relative to the general market.

Zacks Investment Research Image Source: Zacks Investment Research

Synopsys

Synopsys is an electronic design automation (EDA) software vendor for the semiconductor and electronics industries. A director recently purchased 750 SNPS shares at a total transaction value of roughly $440k.

Analysts have been considerably bullish on the company’s current fiscal year outlook, with the $13.36 Zacks Consensus EPS estimate up 10% over the last year and suggesting 20% year-over-year growth.

Zacks Investment Research Image Source: Zacks Investment Research

lululemon Athletica

lululemon designs, manufactures, and distributes athletic apparel and accessories for women, men, and female youth. A director recently purchased 700 LULU shares, with the transaction totaling nearly $275k.

Margin expansion has been a big driver behind the strong share performance over the last several years, as we can see below. Shares faced selling pressure following its latest set of quarterly results, with +15% year-over-year revenue growth reflecting a deceleration.

Zacks Investment Research Image Source: Zacks Investment Research

Dollar Tree

Dollar Tree operates discount variety stores, offering a wide range of quality everyday general merchandise in many categories. The CFO recently made a splash, acquiring 1800 DLTR shares at a total transaction value of just under $250k.

The company maintains a favorable growth outlook, with consensus expectations for its current fiscal year alluding to a 17% boost in earnings on 3% higher sales. Peeking ahead to FY26, consensus estimates presently suggest an additional 18% boost in earnings on a 6% sales increase. 

Zacks Investment Research
Image Source: Zacks Investment Research

Walgreens Boots Alliance

Walgreens Boots Alliance operates as a retail drugstore chain. The CFO recently acquired 6000 WBA shares at a total transaction cost of just under $120k.

Adverse price action has been prevalent among WBA shares for some time now, down 40% just over the last year and widely underperforming relative to the S&P 500.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

Many investors closely monitor insider buys, as they can provide insight into the longer-term picture. After all, if an insider didn’t believe in the company’s future pathway, why would they buy?

All five stocks above – Dollar Tree (DLTR - Free Report) , Walgreens Boot Alliance (WBA - Free Report) , Synopsys (SNPS - Free Report) , Snowflake (SNOW - Free Report) , and lululemon Athletica (LULU - Free Report) – have seen recent insider activity.

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