In this article, we will take a detailed look at 10 Large-Cap Stocks with Insider Buying in 2025.
Insider buying is one of the strongest indirect signals that analysts and successful investors often use to assess whether a stock is undervalued or not. The intuition behind this stems from the fact that high-ranked insiders such as named executive officers and directors possess confidential information that may give greater visibility into the company’s future and growth trajectory. Insiders leverage such information as real-time data on sales and orders, and discussions with key clients, suppliers and other stakeholders, to form a better understanding of the company’s valuation. For instance, insiders often show net selling of their own company stock at peak valuations, just days or weeks before a major market correction happens; and vice versa, insiders often show net buying at or near market bottoms, days or weeks before the stock price starts to increase. This is clearly not a coincidence most of the time. Also, many successful investors emphasized the idea that insider buying is often a stronger signal than selling. Here is what Peter Lynch, one of the greatest ever, said on this topic:
“Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.”
With the US stock market having experienced a very strong bull market for the last 2 years, insider buying has become increasingly muted, with insider selling starting to prevail, especially in apparently overbought sectors like technology. This trend suggests that executives and institutional investors may see limited upside in certain high-flying stocks, prompting them to lock in gains. However, a significant portion of those strong returns have been driven only by a handful of companies, often called the “Magnificent 8”, which experienced an uplift from AI and other megatrends. At the same time, on an equal-weight basis, the US stock market has had a more modest performance. Some sectors like healthcare are at or near multi-year lows on a relative basis, driven by a combination of headwinds as well as a lack of tailwinds to the same extent as the technology leaders. The key takeaway for investors is that regardless of what point in the cycle we are, or how long into a bull market we are, both buying and selling opportunities will exist.
READ ALSO: 10 Technology Stocks with Insider Buying in 2024
The US stock market is still near its early 2025 all-time high and exhibits peak concentration and net insider selling. We believe that at such extreme points, when high valuation concerns are widely spread in the news, the signals provided by insiders buying their own company stocks are more valuable than ever. Their actions can indicate where genuine value exists beneath the broader market’s surface, highlighting sectors or individual companies that may be overlooked or undervalued. Insider buying in such an environment suggests confidence in a company’s long-term fundamentals, despite broader market uncertainties or short-term volatility. Investors who pay close attention to these signals may uncover opportunities in sectors that have lagged behind, offering potential for strong future returns as market conditions evolve. Last but not least, large-cap companies are usually widely followed and exhibit more price efficiency; consequently, insider buying signals in these stocks are even more relevant in our opinion.
An executive in a suit on the floor of a trading exchange, with screens of stock prices in the background.
Our Methodology
We used Insider Monkey’s insider trading stock screener to find large-cap stocks with at least two insiders buying shares worth at least $100,000 in the last six months. We believe that multiple insiders buying significant amounts of stock represents a higher chance that insiders have high confidence in the company. For all the companies, we also include the number of hedge funds tracked by Insider Monkey, as of Q4 2024, that own the stock. The stocks are ranked in ascending order of their hedge fund holdings.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Amcor plc (NYSE:AMCR)
Number of Hedge Fund Holders: 29
Amcor plc (NYSE:AMCR) is a global packaging company headquartered in Switzerland, with operations in over 40 countries and around 41,000 employees. It specializes in flexible and rigid packaging solutions for industries such as food, beverages, healthcare, and personal care. The company operates through two main segments: Flexibles, which includes films and pouches, and Rigid Packaging, which focuses on plastic containers. In 2024, Amcor announced an $8.4 billion all-stock acquisition of Berry Global, aiming to expand its market presence and strengthen its position in consumer and healthcare packaging.
Amcor plc (NYSE:AMCR) has demonstrated sequential volume improvements in recent quarters, with particularly strong performance showing 4% growth in 75% of their business excluding North American beverage and Healthcare segments. Financial performance remains solid with EBIT and EPS up 5%, improved cash flow, and leverage reduced to 3.3%.
A significant development is the upcoming merger with Berry Global, which recently received shareholder approval from both companies and is expected to close by mid-year, pending regulatory approvals. The merger is expected to generate $650 million in synergies over three years, including $530 million in cost synergies, $60 million in revenue synergies, and $60 million in financial synergies. Amcor plc (NYSE:AMCR) maintains strong margins with EBITDA at 15%, while the Berry acquisition portfolio shows 17% margins, with potential to reach 18% post-merger including synergies. AMCR has demonstrated success in commercial excellence through its Value+ program and has achieved significant progress in sustainability initiatives, with 95% of their products now having recycle-ready alternatives available for customer trials. The strong outlook for the future is further reinforced by at least 2 insiders buying more than $100,000 worth of stock in the last 6 months.
9. Allegion plc (NYSE:ALLE)
Number of Hedge Fund Holders: 36
Allegion plc (NYSE:ALLE) is a global security solutions provider specializing in locks, door closers, exit devices, electronic access control systems, and steel doors. It operates in over 120 countries through two main segments: Allegion Americas and Allegion International. The company owns more than 30 brands, including Schlage, Von Duprin, and LCN, serving residential, commercial, and institutional markets. ALLE focuses on smart security technologies, integrating electronic and biometric access systems. It also provides workforce productivity solutions for businesses.
Allegion plc (NYSE:ALLE) is experiencing positive momentum in its non-residential segment, with volume growth in the last three quarters driven primarily by the institutional segment and data centers. While multifamily and commercial office segments remain soft, the company’s residential business outlook for 2025 remains conservative due to stubborn mortgage rates. The company’s electronics business, now over $1 billion in sales, offers significant growth potential with electronic locks commanding 2 to 2.5x the average selling price of mechanical counterparts at similar margin rates.
Allegion plc (NYSE:ALLE) has demonstrated strong margin performance, achieving 230 basis points of EBITDA margin expansion while simultaneously increasing R&D spending from 2.5% to over 3% of sales and CapEx from 1.5% to over 2.5% of sales. The company is actively pursuing bolt-on acquisitions, aiming to contribute 3% to 4% of revenue growth through M&A activities, with a focus on maintaining profitability. In terms of software and services, ALLE is expanding its offerings through organic investment and strategic acquisitions, particularly in workforce management and access control solutions. The company has also demonstrated pricing power, with planned price increases of 3% to 5% across product lines, expecting net price realization of 1.5% to 2%.
8. Dow Inc. (NYSE:DOW)
Number of Hedge Fund Holders: 48
Dow Inc. (NYSE:DOW) is a global materials science company specializing in the production of plastics, industrial intermediates, coatings, and silicones. The company operates through three primary segments: Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings. Dow serves diverse industries, including packaging, infrastructure, mobility, and consumer applications, with a presence in over 31 countries. The company was formed in 2019 following the separation from DowDuPont, which itself was a merger of Dow Chemical and DuPont in 2017. The Michigan-based company ranked second on our recent list of 10 Best Dividend Stocks Yielding at Least 7% According to Analysts.
Dow Inc. (NYSE:DOW) delivered its fifth consecutive quarter of YoY volume growth despite weak macroeconomic conditions, with 4Q 2024 net sales of $10.4 billion, down 2% YoY, and operating EBITDA of $1.2 billion, which was approximately flat compared to the same period last year. The company announced significant strategic actions including a $1 billion cost reduction target by 2026, primarily focused on third-party contract labor and purchased services, along with the elimination of approximately 1,500 roles. Dow entered into a definitive agreement with Macquarie Asset Management to sell a 40% equity stake in select US Gulf Coast infrastructure assets, expecting to generate approximately $2.4 billion in initial cash proceeds, with potential to increase to $3 billion if Macquarie exercises its option to increase stake to 49%.
In response to persistently weak global macroeconomic conditions, Dow Inc. (NYSE:DOW) announced a strategic review of select European assets, primarily in the polyurethanes business, where demand has been structurally challenged over the past 5 years. Additionally, DOW is reducing its 2025 CapEx spending by $300 million to $500 million compared to the previously disclosed target of $3.5 billion and will maintain these levels until a clear recovery materializes across broad portions of end markets. The company remains committed to maintaining its industry-leading dividend, with north of 65% of owners counting on that dividend as a priority. Despite the aforementioned macro headwinds, the insiders buying signal that the local bottom in stock price is likely in the rear-view mirror.
7. TKO Group Holdings Inc. (NYSE:TKO)
Number of Hedge Fund Holders: 54
TKO Group Holdings Inc. (NYSE:TKO) is a prominent sports and entertainment company formed in September 2023 through the merger of World Wrestling Entertainment (WWE) and Zuffa, the parent company of Ultimate Fighting Championship (UFC). This merger marked the first time WWE was not majority-controlled by the McMahon family, who had owned it for over 70 years. TKO operates iconic brands such as UFC, WWE, and Professional Bull Riders, reaching over 210 countries and territories and organizing more than 500 live events annually, attracting over three million fans. The company’s revenue streams include media rights, live events, sponsorships, and consumer product licensing.
TKO Group Holdings Inc. (NYSE:TKO) delivered record financial performance in their first full year as a public company, generating revenue of $2.804 billion and adjusted EBITDA of $1.251 billion, exceeding their revised guidance. The integration of UFC and WWE proved successful, driving greater efficiency and exceeding guided net savings of $100 million. The company strengthened its media rights portfolio through significant partnerships, notably moving WWE Raw to Netflix, which provides access to 300 million subscribers globally.
Both UFC and WWE achieved record-breaking years in live events, with UFC delivering 10 all-time highest grossing event records and WWE setting revenue records at 10 premium live events. Global brand partnerships showed strong growth, with UFC sponsorship revenue increasing 28% and WWE setting an all-time high with 20% year-over-year growth. Looking ahead, the company is focused on domestic rights renewals for UFC and WWE’s premium live events as their highest priority, while also expecting to close acquisitions of IMG, On Location and PBR in the first quarter to expand their global sports portfolio. For 2025, TKO Group Holdings Inc. (NYSE:TKO) is targeting revenue of $2.93 billion to $3.0 billion and adjusted EBITDA of $1.35 billion to $1.39 billion, which is further reinforced by insider buying in the last six months.
6. Ally Financial Inc. (NYSE:ALLY)
Number of Hedge Fund Holders: 54
Ally Financial Inc. (NYSE:ALLY) is a diversified financial services company offering a range of digital financial products and services to consumers, businesses, automotive dealers, and corporate clients. ALLY operates through several key segments: Automotive Finance, providing vehicle financing and leasing solutions; Insurance, offering vehicle service contracts and insurance products; Mortgage Finance, delivering a variety of mortgage and lending options; and Corporate Finance, supplying capital for equity sponsors and middle-market companies. Additionally, the company has a direct banking subsidiary, which offers online banking services, including savings accounts, checking accounts, and certificates of deposit.
Ally Financial Inc. (NYSE:ALLY) delivered adjusted EPS of $2.35, core pretax income of $1 billion and revenues of $8.2 billion in 2024. The company announced significant strategic changes, including the sale of its Credit Card business and cessation of new mortgage loan originations, aiming to streamline operations and focus on core franchises. In auto finance, the company demonstrated strong performance with $39 billion in consumer originations sourced from a record 14.6 million applications, with 44% of originations in the highest credit quality tier. Corporate Finance achieved record pretax income of more than $400 million and an ROE of 37% with zero net charge-offs.
The deposits franchise added more than 230,000 new customers, reaching 3.3 million depositors with $143 billion in balances, maintaining industry-leading customer satisfaction at 90% and retention above 95%. Ally Financial Inc. (NYSE:ALLY)’s credit performance showed improvement in Q4, with better-than-expected flow-to-loss rates and favorable used vehicle values. Looking ahead, ALLY expects net interest margin of approximately 3.4% to 3.5% for 2025, with retail auto net charge-offs projected at 2% to 2.25%. Management remains confident in achieving mid-teens ROTCE over time through margin expansion, normalization of retail auto NCOs below 2%, and disciplined resource allocation. Given the optimistic outlook, it is of no surprise that at least 2 insiders bought more than $100,000 worth of stock in the last six months.
5. Diamondback Energy Inc. (NASDAQ:FANG)
Number of Hedge Fund Holders: 54
Diamondback Energy Inc. (NASDAQ:FANG) is an independent oil and natural gas company specializing in the acquisition, development, exploration, and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin of West Texas and New Mexico. The company focuses on the development of the Spraberry and Wolfcamp formations in the Midland Basin, as well as the Wolfcamp and Bone Spring formations in the Delaware Basin. FANG also owns and operates midstream infrastructure assets in the Midland and Delaware Basins, providing services under long-term, fixed-fee contracts.
Diamondback Energy Inc. (NASDAQ:FANG) demonstrated strong capital efficiency in their operations, with the ability to produce the same free cash flow at $67 per barrel compared to $76 last year, achieved through improved efficiency and accretive deals. The company is executing a significant DUC (Drilled but Uncompleted wells) drawdown plan, which contributes to approximately $200 million in capital savings for the year. On the M&A front, the company views the Double Eagle transaction as potentially the last meaningful opportunity in the core of the Midland Basin, signaling a shift towards focusing on share repurchases and reducing enterprise value.
The company’s financial position remains strong, generating approximately $20 per share of free cash flow at $70 oil in 2025, representing a 12.5-13% yield at current prices. Regarding asset sales, Diamondback Energy Inc. (NASDAQ:FANG) has committed to $1.5 billion in noncore asset sales, primarily focusing on equity method investments and midstream assets, without selling operated acreage. The company is also actively pursuing innovative opportunities in power generation, working on potential partnerships with hyperscalers for data centers that could utilize its gas while providing power solutions for their operations. The potential upside arising from such opportunities is reinforced by significant insider buying in the last six months.
4. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 60
International Business Machines Corporation (NYSE:IBM) is a multinational technology company offering a wide range of products and services, including hardware, software, cloud computing, and consulting. IBM operates in over 175 countries and is recognized as one of the 30 companies in the Dow Jones Industrial Average. The company has a significant presence in the technology industry, managing 90% of all credit card transactions globally and overseeing 50% of all wireless connections worldwide. IBM’s business segments include Software, Consulting, Infrastructure, and Financing, providing comprehensive solutions to various industries.
International Business Machines Corporation (NYSE:IBM) has positioned itself as a leader in hybrid cloud and AI, with 93% of Fortune 500 companies leveraging their capabilities. The company has built a significant AI book of business worth $5 billion in just 6 quarters, with 80% in Consulting and 20% in Software. IBM closed 2024 with $63 billion in revenue and $12.7 billion in free cash flow, demonstrating strong financial performance. The company’s growth strategy is built on multiple pillars, including a software-led portfolio approaching 45% of revenue, strategic partnerships, and continued innovation in hybrid cloud and AI.
Looking forward, International Business Machines Corporation (NYSE:IBM) has provided guidance for revenue growth inflecting up to 5-plus percent, with continued operating leverage and adjusted EBITDA growing double digits in 2025. The company’s software business is expected to grow at approximately 10%, driven by Red Hat’s acceleration to mid-teens growth, new mainframe cycle, and disciplined capital allocation M&A engine. IBM maintains a strong commitment to innovation with increased R&D spending to 12% from 9% of revenues, while also focusing on productivity improvements that have generated $3.5 billion in savings. The company’s strategic positioning in emerging technologies is evident through its quantum computing initiatives, with quantum-related signings approaching $1 billion and a clear roadmap for quantum advantage by 2026. With that being said, insider buying further reinforces the strong outlook for the future.
3. Wynn Resorts Limited (NASDAQ:WYNN)
Number of Hedge Fund Holders: 64
Wynn Resorts Limited (NASDAQ:WYNN) is a prominent developer and operator of luxury hotel-casino resorts. Established in 2002 by Steve Wynn, the company has expanded its portfolio to include several high-end properties. In Las Vegas, it operates Wynn Las Vegas and Encore Las Vegas. Internationally, WYNN owns Wynn Macau and Wynn Palace in Macau, China, and Encore Boston Harbor in Massachusetts. These resorts offer luxury accommodations, gaming facilities, dining, entertainment, and retail options. The company is also expanding into new markets, with Wynn Al Marjan Island currently under construction in the United Arab Emirates, expected to open in the first quarter of 2027.
Wynn Resorts Limited (NASDAQ:WYNN) delivered another record year of adjusted property EBITDAR in 2024, including an annual record in Las Vegas. The company demonstrated strong operational performance in Las Vegas with table games drop remaining flat against tough comparisons and slot handle increasing by 13%, while gaming market share grew meaningfully in Q4. In Macau, the company generated $293 million of EBITDA during the fourth quarter, down about 1% year-over-year but up 11% sequentially, maintaining disciplined focus on maximizing EBITDA and healthy margin profile despite competitive market conditions.
Wynn Resorts Limited (NASDAQ:WYNN) is making significant progress on Wynn Al Marjan Island in the UAE, with construction reaching the 35th floor and expectations that this will be a $3-5 billion gaming market over time. Looking ahead, the company has secured a landmark $2.4 billion financing package for the UAE project, marking the largest hospitality financing in UAE history, with planned opening in early 2027. The future appears great for WYNN, which is also signaled by at least 2 insiders buying more than $100,000 worth of stock in the last six months.
2. Centene Corporation (NYSE:CNC)
Number of Hedge Fund Holders: 72
Centene Corporation (NYSE:CNC) is a leading managed healthcare company specializing in government-sponsored programs such as Medicaid, Medicare, and the Affordable Care Act marketplace. Founded in 1984, CNC serves millions of members across the US, providing comprehensive healthcare solutions, including behavioral health, pharmacy benefits, and specialty services. The company also operates Tricare for military families and correctional healthcare programs. With a strong focus on underserved communities, CNC partners with state and federal agencies to improve access to quality healthcare while managing cost-effective care delivery. The US-based company ranked eighth on a recent list of 12 Best Health Insurance Stocks to Buy in 2025.
Centene Corporation (NYSE:CNC) reported 4Q 2024 adjusted diluted EPS of $0.80 and full year 2024 adjusted diluted EPS of $7.17, demonstrating strong results and durable earnings power. The company has increased its full year 2025 revenue guidance by $4 billion, driven by better-than-expected results during Medicare annual enrollment period and a Medicaid program expansion. In the Medicaid segment, the company achieved a mid-4% composite rate adjustment for 1/1/25 effective rates and expects a full year 2025 composite rate adjustment of 3% to 4%. The Medicare business showed significant progress with 55% of members associated with 3.5 star plans or better, up from 23% last year.
In the Marketplace segment, January enrollment turned out stronger than anticipated, with peak membership expected to be slightly above 5 million members during the next quarter. Centene Corporation (NYSE:CNC)’s Part D business is positioned for growth in 2025 with expected revenue of approximately $16 billion, better than previous expectations. Looking ahead, CNC is stepping into 2025 with a clear strategy, compelling embedded earnings power and positive momentum within each line of business, with significant earnings power embedded in the business including $3 to $4 of adjusted EPS opportunity to unlock over time.
1. Ferguson Enterprises Inc. (NYSE:FERG)
Number of Hedge Fund Holders: 72
Ferguson Enterprises Inc. (NYSE:FERG) is a leading distributor of plumbing, HVAC, and industrial products in the United States and Canada. The company supplies a broad range of materials, including plumbing fixtures, pipes, valves, fittings, appliances, and lighting, catering to residential, commercial, and industrial markets. FERG operates an extensive network of branches, regional distribution centers, and master distribution centers, ensuring efficient product delivery. In the industrial sector, it provides customized pipes, valves and fitting solutions, in-house project management, and contracting services to optimize operational performance and safety for its clients.
Ferguson Enterprises Inc. (NYSE:FERG) delivered Q1 2025 sales of $7.8 billion, representing nearly 1% growth despite market headwinds and approximately 2% deflation. The company achieved an adjusted operating profit of $706 million with a 9.1% adjusted operating margin, while adjusted diluted earnings per share declined 7.5% to $2.45. The company demonstrated resilience through volume growth of approximately 3%, with organic volume up approximately 2%, though this was offset by modest overall price deflation of around 2%. Notable performance came from the HVAC segment, which grew by 10%, while Waterworks revenues increased by 3%, demonstrating success in strategic growth initiatives.
Ferguson Enterprises Inc. (NYSE:FERG) maintained a strong balance sheet with 1.2x net debt to adjusted EBITDA and continued its capital allocation strategy through investments in organic growth, acquisitions, and shareholder returns, including a 5% dividend increase and $256 million in share repurchases. Looking forward, FERG expects net sales growth in the low single-digit range, with markets being down low single digits, while maintaining market outperformance of approximately 300 to 400 basis points. The company remains well-positioned to capitalize on structural tailwinds in the underbuilt and aging US housing market, nonresidential large capital projects, and growing demand for plumbing and HVAC specialized professionals, which is further reinforced by significant insider buying in the last six months.
Overall, Ferguson Enterprises Inc. (NYSE:FERG) ranks first on our list of the 10 large-cap stocks with insider buying in 2025. While we acknowledge the potential of FERG as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FERG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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