In this article, we will take a detailed look at 10 Large-Cap Stocks Insiders Are Buying Recently.
Investors should closely monitor insider trading activity as it can provide valuable insights into a company’s future prospects. Insiders, such as executives and directors, possess intimate knowledge of the company’s operations and strategic direction. When these individuals invest their own capital in company stock, it often signals strong confidence in the company’s future performance.
While not an infallible indicator, significant insider buying activity can suggest that the company may be undervalued or poised for growth. Conversely, while insider selling can have various motivations, it can sometimes signal concerns about the company’s future.
It’s crucial to remember that insider trading activity should be analyzed within the broader context of the company’s fundamentals, industry trends, and overall market conditions. A stock seeing heavy insider buying doesn’t always mean it will go up sharply in the future. Therefore, investors should carefully consider the underlying reasons for insider transactions and conduct thorough due diligence before making investment decisions based on this information alone. By carefully analyzing insider trading activity alongside other relevant factors, investors can gain valuable insights into a company’s prospects and make more informed investment decisions.
To come up with the 10 names, we only considered stocks with a market capitalization of more than $10 billion. We first used Insider Monkey’s insider trading stock screener and looked for stocks with at least two insiders buying over the last six months.
With each stock we note the number of recent insider purchases and the company’s current market capitalization. But why is it important to follow insider activity? Our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds, focusing on insider trading and stock picks from hedge fund investor newsletters and conferences. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A trader at a stock exchange terminal, analyzing the daily data of a large capitalization company.
10. Dow Inc. (NYSE:DOW)
Number of Recent Insider Purchases: 4
Market Cap: $29.099 billion
Dow Inc. is a chemicals company focused on the material science industry, manufacturing and marketing various chemical, plastic and agricultural products. Some investors are bullish on Dow because of its exposure to multiple industries like packaging, consumer goods, construction and agriculture, making it more resilient to volatility in one sector.
The Michigan-based dividend-paying company operates across 150 countries, accessing diverse markets and economies. In the third quarter of 2023 Dow Inc. disclosed an operating cash flow of $800 million, down from $858 million in the same period of 2022. Its third-quarter net sales also declined 24% versus the year-ago period, reflecting declines in all operating segments, which the company attributes to slower global macroeconomic activity. Despite these declines, returns to shareholders reached $617 million for the reporting periods, including $492 million in dividends and $125 million in share repurchases.
Dow Inc. is a reliable dividend player, it has been making regular dividend payments to shareholders since 1912.
Over the last 12 months, the company’s shares dropped 22.47% to $41.92.
9. The Estée Lauder Companies Inc. (NYSE:EL)
Number of Recent Insider Purchases: 11
Market Cap: $29.716 billion
World-wide known beauty products company The Estée Lauder Companies Inc. has been struggling over the recent year due to the troubles in its operation in China. The company known for brands like Estée Lauder, Clinique, MAC, La Mer, and Aveda attributed the drop in Asia sales to China’s economic sales.
In its report for the first quarter of fiscal 2025, the company disclosed net sales of $3.36 billion, a decrease of 4% compared to the prior year. Furthermore, Estée Lauder reported a net loss of $156 million, compared with net earnings of $31 million in the prior year, primarily due to expenses related to talcum litigation settlement agreements. Diluted net loss per common share was $.43, compared with net earnings per common share of $.09 reported in the prior year.
CNBC’s Mad Money host Jim Cramer recently said that this is “one of the worst stocks that I’ve ever seen.” However, Cramer also stressed that it’s been a “terrible” time for the cosmetics sector.
Over the last 12 months, the Estée Lauder Companies’ shares lost 38.34%, hitting a price of $83.56 per share.
