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Investors closely monitor insider buys, as they can give hints surrounding the long-term picture.
But it's critical to note that insiders have a longer holding period than most, and many strict rules apply to their transactions.
Recently, insiders of several companies – Cummins, Caterpillar and Southwest Airlines – have made splashes, acquiring shares. Let's take a closer look at the transactions for those interested in trading like the insiders.
CMI Shares Soar
A director of Cummins recently acquired 1k CMI shares, with the total transaction value totaling just under $340k. CMI shares have been notably strong over the last month thanks to its latest set of better-than-expected results, up more than 20% and widely outperforming relative to the S&P 500.
Still, despite the positivity concerning the recent insider buy, the stock's EPS outlook remains under pressure, and investors would be better off waiting until positive earnings estimate revisions hit the tape consistently.
We've begun to see some positive revisions trickle in already for its current fiscal year, with the current $20.95 Zacks Consensus EPS estimate up from the original $20.77 per share estimate at the beginning of May.
LUV Insider Steps In
A director of Southwest Airlines stepped up big in early May, acquiring roughly 3.7k LUV shares at a total cost of $100k. It was a sizable purchase, increasing their total shares held by nearly 25%.
Similar to CMI, Southwest shares have been red-hot over the past month thanks to its latest set of quarterly results, up more than 35% compared to the S&P 500's 15% gain.
CAT Keeps Paying Shareholders
A director of Caterpillar recently acquired 375 CAT shares at a total transaction value of roughly $120k. It's worth noting that the same director has consistently bought shares over recent years, underpinning their confidence in the long-term outlook of the company.
CAT has long displayed a shareholder-friendly nature, holding the ranks of a Dividend Aristocrat. Shares currently yield a solid 1.6% annually, with the company also sporting a 7.7% five-year annualized dividend growth rate.
Bottom Line
Many investors closely monitor insider buys, looking to receive insights into the longer-term picture. The transactions shouldn't be relied on for near-term performance, as insiders' holding periods are longer than most, and many strict rules apply.
Rather, investors can see insider buys as an overall net positive concerning the longer-term outlook.
All large-cap stocks above have seen recent insider activity.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Cummins, Caterpillar and Southwest Airlines
For Immediate Release
Chicago, IL – May 21, 2025– Today, Zacks Investment Ideas feature highlights Cummins (CMI - Free Report) , Caterpillar (CAT - Free Report) and Southwest Airlines (LUV - Free Report) .
Insiders Are Buying These 3 Stocks
Investors closely monitor insider buys, as they can give hints surrounding the long-term picture.
But it's critical to note that insiders have a longer holding period than most, and many strict rules apply to their transactions.
Recently, insiders of several companies – Cummins, Caterpillar and Southwest Airlines – have made splashes, acquiring shares. Let's take a closer look at the transactions for those interested in trading like the insiders.
CMI Shares Soar
A director of Cummins recently acquired 1k CMI shares, with the total transaction value totaling just under $340k. CMI shares have been notably strong over the last month thanks to its latest set of better-than-expected results, up more than 20% and widely outperforming relative to the S&P 500.
Still, despite the positivity concerning the recent insider buy, the stock's EPS outlook remains under pressure, and investors would be better off waiting until positive earnings estimate revisions hit the tape consistently.
We've begun to see some positive revisions trickle in already for its current fiscal year, with the current $20.95 Zacks Consensus EPS estimate up from the original $20.77 per share estimate at the beginning of May.
LUV Insider Steps In
A director of Southwest Airlines stepped up big in early May, acquiring roughly 3.7k LUV shares at a total cost of $100k. It was a sizable purchase, increasing their total shares held by nearly 25%.
Similar to CMI, Southwest shares have been red-hot over the past month thanks to its latest set of quarterly results, up more than 35% compared to the S&P 500's 15% gain.
CAT Keeps Paying Shareholders
A director of Caterpillar recently acquired 375 CAT shares at a total transaction value of roughly $120k. It's worth noting that the same director has consistently bought shares over recent years, underpinning their confidence in the long-term outlook of the company.
CAT has long displayed a shareholder-friendly nature, holding the ranks of a Dividend Aristocrat. Shares currently yield a solid 1.6% annually, with the company also sporting a 7.7% five-year annualized dividend growth rate.
Bottom Line
Many investors closely monitor insider buys, looking to receive insights into the longer-term picture. The transactions shouldn't be relied on for near-term performance, as insiders' holding periods are longer than most, and many strict rules apply.
Rather, investors can see insider buys as an overall net positive concerning the longer-term outlook.
All large-cap stocks above have seen recent insider activity.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.