TipRanks
3 Stocks Flashing Signs of Strong Insider Buying
For an individual investor to beat the market, you need an edge. Investing strategies come in different forms and you can rely on several factors to achieve the end goal of strong returns. Be it following analyst ratings, upcoming catalysts or recognizing the latest market moving trends. There is another option: following the signal from those in the know – the corporate insiders. These are the company officers whose positions give them both access to frequently privileged information on business plans and finances and the experience necessary to translate that into smart stock trades. And better yet – they are not wholly free actors. Being responsible to shareholders and Boards of Directors for company profits, these insiders cannot use their inside knowledge for selfish purposes. Which means that following their stock trades, especially of their own companies, can be a viable investment strategy. Fortunately, federal regulations require that the insiders make their inside trades public – to keep the playing field level. To make that search easier, the TipRanks Insiders’ Hot Stocks tool gets the footwork started – identifying stocks that have seen informative moves by insiders, highlighting several common strategies used by the insiders, and collecting the data all in one place. We’ve picked three stocks with recent informative buys to show how the data works for you. Calix, Inc. (CALX) The first stock we’re looking at is Calix, a cloud computing tech company. Calix follows a subscription model, offering cloud software, systems, platforms, services, and solutions to the communications industry. Calix’s products give the customers real-time data and data insights into their end-users, allowing them to more efficiently monetize their business and customer interactions. Calix, like many high-tech software platform companies, offers a system that can streamline operations – a vital advantage in today’s expanding remote work climate. The company’s revenues reflect the growth-oriented environment: the top line showed year-over-year growth in each quarter of 2020, with the most recent, Q4, coming in at $170 million being the best of the past two years. EPS, at 37 cents, was up 15% from Q3, and was positive for the second quarter in a row – a feat the company had been unable to achieve over the past two years. With a background like that, it’s no wonder that this stock is seeing insider buying. The most recent purchase is from Board member Donald Listwin, who bought up 20,000 shares, shelling out almost $715,000. 5-star analyst Paul Silverstein, of Cowen, notes that Calix has adopted an age-old strategy for beating the forecasts: “4Q20 fuels our view that near- and long-term earnings power and cash flow continue to be significantly greater than what Street has modeled……
Read More:Source link
