One way to spot potential opportunities is by following company insiders.
After all, who knows the company better than insiders?
If they’re buying a sizable number of shares, it’s often a good idea to start looking into why.
We have to consider that insiders buying their stock would not put up their own money unless they believed the move would be profitable.
Here are three recent stocks with respectable insider buying.
MP Materials (MP)
Over the last few weeks, MP Materials inked a deal with General Motors to “develop a fully integrated U.S. supply chain rare earth magnets.”
While that news already sent MP shares from $30 to $43, company insider, Director Randall
Weisenburger just bought 86,901 shares for $3.5 million.
Helping, JP Morgan analysts recently increased their price target on the MP stock to $52 from $45. All thanks to forecasts for higher rare earth prices.
In addition, “The MP Materials team continues to deliver, with record quarterly production and shipments driving strong growth in revenue and Adjusted EBITDA,” said Chairman and CEO, James H. Litinsky. “Our performance reflects continued execution and cost discipline at Mountain Pass coupled with strong global demand for rare earth materials.”
Over the last few weeks, there’s been a considerable amount of insider buying. Chairman, President, and CEO Lourenco Gonclaves for example bought 50,000 shares for $1 million.
Chief Financial Officer Celso Goncalves bought 10,000 shares for $206,500. Keith Koci, president of Cleveland-Cliffs paid $218,270 for 10,000 shares. In addition, Director Ralph Michael III bought 10,000 shares for $201,000. All after the stock just pulled back to strong support dating back to May 2021. Even better, there’s solid growth at CLF.
Q3 2021 consolidated revenues came in at $6 billion from $1.6 billion year over year. For the first nine months of 2021, it recorded revenues of $15.1 billion and net income of $2.1 billion, or $3.69 per diluted share. A year earlier, it posted revenues of $3.1 billion and a net loss of $155 million, or a loss of $0.51 per diluted share, as reported in a company press release.
Asana Inc. (ASAN)
Keep an eye on Asana Inc. (ASAN).
After gapping from about $145 to about $60 over the last few weeks, Asana’s billionaire co-founder and CEO bought $81 million worth of the stock. That brought his purchases of the stock to just over $195 million for the month, says CNBC.
Most recently, the company posted a narrower than expected quarterly loss.
“Q3 was another strong quarter, led by record user adoption and large enterprise wins,” said Moskovitz, as quoted in a company press release.
“We are excited to be announcing that we exceeded two million paid seats and we are landing bigger with larger customers and expanding significantly across our customer base. With some of the most valuable companies in the world deploying Asana to manage initiatives across entire divisions, Asana exemplifies what cross-functional work management at scale looks like.”