In this article, we will take a detailed look at 10 Mid–Cap Stocks Insiders Are Buying Recently.
Why is it important to keep track of insider trading activity? Insiders, meaning people in high positions, such as executives and directors, have valuable insights into the company’s strategic moves, plans and initiatives. When, for example, a CEO invests their own capital in company stocks, it can indicate strong confidence in the company’s future results.
It is important to note that behind insider selling can be various other motives, that’s why insider trading activity should be assessed within the broader context of the company’s fundamentals, industry trends, and overall market conditions. Many insider purchases don’t necessarily mean the company will be successful. That’s why due diligence before any investment is of crucial importance. Investors should also take into account and carefully analyze underlying reasons for insider transactions. However, insider trading activity in combination with other relevant factors can offer precious insights into a company’s capabilities, helping investors make more informed investment decisions.
To come up with the 10 mid-cap stocks insiders are buying recently, we only considered stocks with a market capitalization of between $2 to $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 three 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 busy trading room floor with analysts absorbing the day’s financial markets information.
10. Azenta, Inc. (NASDAQ:AZTA)
Number of Insiders Recently Buying: 4
Market Capitalization: $2.47B
Four insiders, including the president and CEO bought around $1.29 million worth of Azenta’s shares at a price of $40 per share. Azenta is a provider of sample exploration and management solutions for the life sciences sector. About a year ago, Azenta was trading at $65.63 per share, indicating that the management seized the moment to acquire shares at a lower price, being confident in the company’s future. The stock is currently trading at about $52.67 per share, after dropping 5.66% over the last six months.
In its latest report for the fourth quarter, Azenta reported revenue of $170 million, down 1% year over year. The company attributed year-over-year revenue decline to lower B Medical Systems revenue. The report included a plan to sell B Medical Systems, which may have caused the November drop in its share price.
In January, Azenta was chosen as the technology provider by UK Biocentre to expand large-scale sample storage, in support of the preservation of internationally significant sample collections. This strategic partnership may have spiked the stock price again.
The consensus rating on Azenta’s stock is “Buy,” with a 12-month average price target of $61.60, suggesting a gain of 17% from the current price.
9. Albany International Corp. (NYSE:AIN)
Number of Insiders Recently Buying: 4
Market Capitalization: $2.527B
This mid-cap stock that insiders are buying recently is a diversified industrial company focused on engineered products and materials. Over the last three months, four officers, including CEO, President, Vice President, and CFO acquired around $317,000 worth of Albany International’s shares at a price of around $71 per share. The stock is now trading at $79.72 per share, having gained about 11% since then.
Insiders and officers used the stock’s drop in November to acquire these shares, as previously in August its shares were trading higher, at about $88 per share. Over the past six months, the shares lost 5.50%.
For the third quarter ended September 30, the company reported net revenues of $298 million, up 6.1%, or 5.8% after adjusting for currency translation, when compared to the prior year. In November, Albany International announced a plan to discontinue manufacturing operations in Olten, and to transfer production to other Heimbach GmbH manufacturing facilities.
In December, the company declared a quarterly dividend of $0.27 per share, an increase of 4% from the prior dividend.
In January, Truist Financial raised its price target for AIN from $85.00 to $88.00, maintaining a buy rating, following TD Cowen’s report from December, where the financial services firm raised Albany International to a “strong-buy.” According to data from MarketBeat, the stock has a consensus rating of “moderate buy” and a consensus target price of $86.25. This suggests that the current trading price is undervalued.
