In this article, we will take a detailed look at the 10 Mid-Cap Stocks with Insider Purchases. For a quick overview of such stocks, read our article 5 Mid-Cap Stocks with Insider Purchases.
Investors are yet again in a wait-and-see mode ahead of key jobs and inflation numbers, but the overall sentiment in the market is positive, helped by the Fed Chair Jerome Powell’s latest statement where he said the central bank expects to begin cutting rates later this year. Meanwhile notable investment firms are continuing to expect the stock market to remain elevated this year and beyond. In its latest report Goldman Sachs said swift revenue growth at tech companies would be enough to fund AI-related investments in the coming years. Goldman Sachs said it expects stock buybacks to exceed $1 trillion for the first time in 2025, driven by expected rate cuts and strong revenue growth of technology companies. Goldman Sachs’ analysts led by Cormac Conners and David Kostin said in a note on March 6 that they expect a whopping 16% growth in share repurchases from S&P 500 companies to $1.08 trillion in 2025.
The Pendulum is Swinging in Favor of Small- and Mid-Cap Stocks?
Wall Street analysts also expect the broader market to start enjoying the market gains hitherto seen only by mega-cap technology stocks. UBS in a latest report said it expects small-cap stocks to outperform large-cap stocks in the coming weeks and months. UBS thinks small-cap companies are undervalued when compared to their large-cap counterparts. UBS also brushed aside the notion that many small-cap companies are unprofitable, as it believes these companies have enough cash runway to operate for years to come. UBS analysts also said upcoming growth catalysts make small-cap stocks attractive.
In this environment, it’d be interesting to focus our attention more on smaller companies instead of giving all the love to large-cap or mega-cap tech stocks. That’s why in this article we decided to take a look at the mid-cap stocks that are currently being snapped up by insiders.
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Methodology
For this article we used Insider Monkey’s stock screener for insider trading and picked 10 mid-cap stocks with the highest insider purchases in terms of dollar value over the past few weeks. We only picked stocks that saw insider purchases initiated by executives, officers and directors. Some top names in the list include Transocean LTD (NYSE:RIG), Jazz Pharmaceuticals PLC (NASDAQ:JAZZ) and Instacart (NASDAQ:CART). With each stock we have also mentioned the number of hedge fund investors. Why do we pay attention to hedge fund sentiment? Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).
10. National Health Investors Inc (NYSE:NHI)
Number of Hedge Fund Investors: 9
Charlotte A. Swafford, a director at National Health Investors Inc (NYSE:NHI), acquired 10,000 shares of National Health Investors Inc (NYSE:NHI) on February 27 at $58.69 per share. Since then through March 6 the stock has slipped about 1% in value.
9. Allegion PLC (NYSE:ALLE)
Number of Hedge Fund Investors: 22
Allegion PLC (NYSE:ALLE) sells locks, biometric scanning systems and other security solutions. It is one of the mid-cap stocks that recently saw insider purchases as Allegion PLC’s (NYSE:ALLE) CEO John Stone bought 10,000 shares of Allegion PLC (NYSE:ALLE) at $132.42 on February 22. Since then the stock has slipped 0.96%.
As of the end of the fourth quarter of 2023, 22 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in Allegion PLC (NYSE:ALLE). The most significant stake in Allegion PLC (NYSE:ALLE) is owned by David Brown’s Hawk Ridge Management which owns a $90 million stake in Allegion PLC (NYSE:ALLE).
8. Agree Realty Corporation (NYSE:ADC)
Number of Hedge Fund Investors: 26
Agree Realty Corporation (NYSE:ADC) ranks eighth in our list of the mid-cap stocks with recent insider purchases. Richard Agree, Executive Chairman of the Board of Directors at Agree Realty Corporation (NYSE:ADC), on February 29 bought 16,000 shares of Agree Realty Corporation (NYSE:ADC) at $55.50 per share. On that day the stock was trading at around $54.95. Since then the stock has gained about 4.20%. On February 21 Richard Agree had snapped up 3,500 shares of Agree Realty Corporation (NYSE:ADC) at $56.92
As of the end of the fourth quarter of 2023, 26 hedge funds out of the 933 fund tracked by Insider Monkey had stakes in Agree Realty Corporation (NYSE:ADC).
Hedge funds and insiders are also buying Transocean LTD (NYSE:RIG), Jazz Pharmaceuticals PLC (NASDAQ:JAZZ) and Instacart (NASDAQ:CART).
The company provided key business updates during its latest earnings call:
“With more than $235 million of forward equity raised late in the fourth quarter, we anticipate putting in place a new ATM program in the coming weeks in normal course. We also demonstrated our ability to access attractive bank debt with a market-leading $350 million 5.5-year term loan at a fixed rate of 4.52% inclusive of prior hedging activity. The term loan received strong support from our key banking relationships and the 5.5-year term allowed us to extend the maturity into 2029. As Joey mentioned, our debt maturity schedule remains in an excellent position with no material maturities until 2028. Our capital markets activity further fortified our balance sheet and positioned us for continued growth in 2024. We ended the year with over $1 billion of total liquidity, including more than $235 million of outstanding forward equity, $773 million of availability on the revolver and approximately $15 million of cash on hand.
In addition, our revolving credit facility and term loan have accordion options, allowing us to request additional lender commitments of $750 million and $150 million, respectively. In addition to our strong liquidity position, free cash flow after the dividend is now approaching $100 million on an annualized basis. As of December 31, pro forma for the settlement of our outstanding forward equity, net debt to recurring EBITDA was approximately 4.3x. Excluding the impact of unsettled forward equity, our net debt to recurring EBITDA was 4.7x.”
Read the full earnings call transcript here.
7. AMN Healthcare Services, Inc. (NYSE:AMN)
Number of Hedge Fund Investors: 27
AMN Healthcare Services, Inc. (NYSE:AMN) ranks seventh in our list of the top mid-cap stocks with latest insider purchases. On February 27 AMN Healthcare Services, Inc. (NYSE:AMN) CEO Cary Grace snapped up 17,500 shares of AMN Healthcare Services, Inc. (NYSE:AMN) at $56.68 per share. Since the date of this insider purchase the stock has gained about 6.19%.
As of the end of the fourth quarter of 2023, 27 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in AMN Healthcare Services, Inc. (NYSE:AMN).
Like AMN, insiders are also buying Transocean LTD (NYSE:RIG), Jazz Pharmaceuticals PLC (NASDAQ:JAZZ) and Instacart (NASDAQ:CART).
Madison Small Cap Fund stated the following regarding AMN Healthcare Services, Inc. (NYSE:AMN) in its fourth quarter 2023 investor letter:
“We sold temporary staffing and consulting company Robert Half to fund the purchase of healthcare staffing company AMN Healthcare Services, Inc. (NYSE:AMN). Although both businesses are valued attractively, AMN’s business is much less cyclical and its valuation slightly more attractive. We believe healthcare staffing is in a cyclical lull post the pandemic but has the long term secular tailwinds to outperform in the medium term.”
6. Exelixis Inc (NASDAQ:EXEL)
Number of Hedge Fund Investors: 33
Biotechnology company Exelixis Inc (NASDAQ:EXEL) ranks sixth in our list of the mid-cap stocks which recently saw insider purchases. David E. Johnson, a director at Exelixis Inc’s (NASDAQ:EXEL) board, amassed 190,000 shares of Exelixis Inc (NASDAQ:EXEL) at $20.70. The transaction took place on February 21. Since then the stock has gained about 8.2%.
The company talked about guidance and business updates in a recent earning call:
“Cabometyx maintained its status as the leading TKI for RCC in both the first-line IO TKI market and second-line monotherapy segment. Fourth quarter cabo franchise net product revenues grew 14% year-over-year, compared to fourth quarter 2022. Cabo franchise net product revenues grew 16% for full year 2023 compared to full year 2022. Highlighting its role as a worldwide leading TKI global cabozantinib franchise Net product revenues generated by Exelixis and its partners were approximately $600 million and $2.3 billion in the fourth quarter and full year 2023 respectively. Chris will review our 2024 financial guidance in his prepared remarks. Second, final reply brief should be submitted in the next few weeks for the second MSN and the trial that took place in October and we expect a ruling in the first-half of 2024.
Obviously, this is a critical milestone for the company and the cabozantinib franchise. While we will not speak to any specifics today, I’m proud of the work that our team did preparing and presenting this case. Exelixis has and will continue to vigorously protect our intellectual property rights with respect to cabo and our other differentiated molecules that we pursue on behalf of patients with cancer. Third, we made significant progress in advancing the pipeline in 2023 that was highlighted at our R&D Day presentation in December. Our top priority for 2024 is to advance potential new cabo indications for net and metastatic CRPC.”
Read the full earnings call transcript here.
Click to continue reading and see 5 Mid-Cap Stocks with Insider Purchases.
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Disclosure. None. 10 Mid-Cap Stocks with Insider Purchases was initially published on Insider Monkey.
