In this article, we will take a look at the 10 mid-cap stocks that insiders have been buying lately. If you want to explore similar stocks, you can also take a look at Inside Scoop: 5 Mid-Cap Stocks with Recent Insider Purchases.
“This Is A Market Where You Have To Be Very Selective, Very Patient, Very Defensive”
On May 18 Cheryl Young, private wealth advisor for the Rockefeller family office, appeared in an interview on CNBC where she shared her insights on the current market conditions and offered advice for investors. Young emphasized the importance of being selective, patient, and defensive in an increasingly narrow market.
Young talked about the recent market trends and their relation to the debt ceiling negotiations. Young expressed optimism, highlighting that “politicians cannot commit political suicide”. She anticipates an agreement regarding the debt ceiling will be reached soon and thinks that short-term volatility is a buying opportunity for investors. However, she also cautioned that there may still be some downside risk ahead in the broader market.
Young acknowledged the frustration of being stuck in a “sideways market” for two years, with the S&P 500 at the same level as it was in April 2021. To navigate this environment, she stressed the need for selectivity and patience. According to Young, breakout opportunities may arise in certain sectors and specific stocks, but the overall market might still face challenges.
Young spoke about mega-cap leadership and how a few select players have been dominating the market. Young thinks that “this is the most narrow range we have ever seen in stocks” and pointed out that the top 10 mega-cap stocks on the S&P 500 make up for a staggering 95% of the year-to-date returns, as of May 18. Moreover, she said that even the top five mega-cap names on the S&P 500 represent 75% of the market’s year-to-date returns. While some debate the significance of this concentration of a few select mega-cap players, Young believes it warrants attention and suggests a cautious approach. Here are some comments from Cheryl Young:
“We’re really seeing a few stocks move and drive the market momentum, but it causes us a lot of concern that the rest of the markets have not rallied with these big mega-cap names.”
Though Young is cautious about the broader market, she remains optimistic about the potential for growth, particularly in the technology sector. Young thinks “there are a lot of areas that have upside ahead, especially in the technology sector”.
Young further talked about some potential concerns. She mentioned the decline in the M2 money supply and the commercial real estate market. Additionally, the looming influx of adjustable rate mortgages in the coming year, coupled with rising interest rates, raises the possibility of a recession.
Despite these concerns, Young maintains her belief that now is still a good time to invest in stocks. She thinks investors should exercise caution and selectivity in navigating the current market. Young thinks investors should add defensive strategies to their portfolios and remain invested for the long term.
It is worth noting that amid the cautionary sentiment in the broader market, there is an aspect of the market that can provide valuable clues for investors: insider trading. Insiders, such as company executives and board members, possess deep knowledge of their respective companies and their actions in the market can often signal confidence in a company’s future prospects. By examining recent insider purchases, we can identify stocks that may have decent upside potential. Some notable mid-cap stocks that insiders are buying right now include DISH Network Corporation (NASDAQ:DISH), Caesars Entertainment Inc. (NASDAQ:CZR), and Newell Brands Inc. (NYSE:NWL). Let’s now take a look at these stocks, among others, in detail below.
Pixabay/Public Domain
Our Methodology
To determine the top mid-cap stocks with recent insider purchases, we used Insider Monkey’s insider trading screener to screen for stocks that have been purchased by corporate insiders between May 1 and May 19. We sorted our screen by transaction amount and narrowed down our selection to mid-cap stocks that have been experiencing high levels of insider purchases in recent days. These stocks are ranked in ascending order of their market cap, as of May 22.
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10. Luminar Technologies, Inc. (NASDAQ:LAZR)
Market Cap as of May 22: $2.37 Billion
Luminar Technologies, Inc. (NASDAQ:LAZR) is a leading American automotive technology company that offers sensor technologies and software for passenger cars and commercial trucks across the globe.
Luminar Technologies, Inc. (NASDAQ:LAZR) is one of the top mid-cap stocks that insiders are buying right now. On May 15, the company disclosed in a regulatory filing that its director, Jun Hong Heng, purchased 33,750 company shares at an average price of $5.91 per share for a total transaction amount of roughly $199,000. Between May 1 and May 22 the company’s CEO, Austin Russell, has acquired more than 3.5 million company shares for a total transaction amount of over $21 million.
This May, Citi analyst Itay Michaeli revised his price target on Luminar Technologies, Inc. (NASDAQ:LAZR) to $18 from $19 and maintained a Buy rating on the shares.
Mid-cap stocks that insiders are loading up on right now include DISH Network Corporation (NASDAQ:DISH), Caesars Entertainment Inc. (NASDAQ:CZR), and Newell Brands Inc. (NYSE:NWL).
9. Morphic Holding, Inc. (NASDAQ:MORF)
Market Cap as of May 22: $2.56 Billion
Morphic Holding, Inc. (NASDAQ:MORF) is an American biopharmaceutical company involved in the development of treatments for autoimmune, cardiovascular, and metabolic diseases. The company is also involved in the development of therapies for fibrosis and cancer.
On April 26, BMO Capital raised its price target on Morphic Holding, Inc. (NASDAQ:MORF) to $106 from $83 and maintained an Outperform rating on the shares.
On May 4 Morphic Holding, Inc. (NASDAQ:MORF) reported that its director, Timothy Springer, purchased 1.05 million company shares at $45 per share for a total transaction of $47.25 million. As of May 22, Morphic Holding, Inc. (NASDAQ:MORF) is valued at $2.56 billion on the open market. The stock is placed ninth on our list of the top mid-cap stocks that insiders are buying right now.
As of March 31, EcoR1 Capital is the largest shareholder in Morphic Holding, Inc. (NASDAQ:MORF) and has disclosed a position worth $144.79 million in the company.
8. Impinj, Inc. (NASDAQ:PI)
Market Cap as of May 22: $2.58 Billion
Impinj, Inc. (NASDAQ:PI) is a premier manufacturer of radio-frequency identification (RFID) devices and software. Insiders are pouring into Impinj, Inc. (NASDAQ:PI) right now. On May 1 the company disclosed that its director, Steve Sanghi, bought 23,500 company shares at $85 per share. The transaction was valued at $1.99 million.
On April 27, Needham analyst James Ricchiuti updated his price target on Impinj, Inc. (NASDAQ:PI) to $145 from $151 and maintained a Buy rating on the shares.
As of March 31, Sylebra Capital Management is the most prominent investor in Impinj, Inc. (NASDAQ:PI) and holds a stake worth $385.9 million in the company.
Wasatch Global Investors made the following comment about Impinj, Inc. (NASDAQ:PI) in its Q4 2022 investor letter:
“Impinj, Inc. (NASDAQ:PI) was also a contributor. The company, a pioneer in helping develop the Internet of Things, provides an infrastructure by which everyday things such as car parts and even shipment data communicate over the internet. Impinj offers a wireless inventory-management and tracking platform for customers in retail, manufacturing, health care and other areas. Tiny radio-frequency identification (RFID) chips are used to connect, count and track individual items. Because Impinj is heavily reliant on integrated circuits, which were in short supply during the post-pandemic rebound, today’s slowing economy helps reduce this supply-and-demand imbalance, benefiting the company’s profitability. The stock soared when Impinj’s third-quarter earnings report and management’s forward guidance were well received by investors. Given the magnitude of the move in the stock, we sold some of our shares but maintained a healthy position.”
7. Plains GP Holdings LP (NYSE:PAGP)
Market Cap as of May 22: $2.73 Billion
Plains GP Holdings, LP (NYSE:PAGP) is involved in the transportation of crude oil and NGLs on pipelines, gathering systems, and trucks. As of May 22, the company is worth $2.73 billion on the open market.
Insiders are stocking up on Plains GP Holdings LP (NYSE:PAGP). On May 8 the company reported that its CEO, Willie Chiang, acquired 75,000 company shares at $13.25 per share for a total transaction amount of $0.99 million. The stock is placed seventh on our list of the top mid-cap stocks that insiders are buying right now.
This April, Morgan Stanley analyst Robert Kad raised his price target on Plains GP Holdings LP (NYSE:PAGP) to $17 from $16 and reiterated an Overweight rating on the shares.
As of March 31, Two Sigma Advisors is the top stockholder in Plains GP Holdings LP (NYSE:PAGP) and has a position worth $43.8 million in the company.
6. Virtu Financial, Inc. (NASDAQ:VIRT)
Market Cap as of May 22: $2.98 Billion
Virtu Financial, Inc. (NASDAQ:VIRT) is a New York-based financial services company. The company has two business divisions: Market Making and Execution Services. On April 11, Morgan Stanley analyst Michael Cyprys upgraded Virtu Financial, Inc. (NASDAQ:VIRT) to Equal Weight from Underweight and raised his price target on the shares to $21 from $18.
Virtu Financial, Inc. (NASDAQ:VIRT) is ranked sixth among the mid-cap stocks that insiders have been buying lately. On May 4 the company reported in a regulatory filing that its CEO, Douglas Cifu, bought 50,000 shares of the company at an average share price of $16.85 per share. The transaction was valued at $0.84 million.
As of March 31, AQR Capital Management is the dominant shareholder in Virtu Financial, Inc. (NASDAQ:VIRT) and has disclosed a stake worth $40.2 million.
In addition to Virtu Financial, Inc. (NASDAQ:VIRT), other notable mid-cap stocks that are experiencing high levels of buy-side insider activity include DISH Network Corporation (NASDAQ:DISH), Caesars Entertainment Inc. (NASDAQ:CZR), and Newell Brands Inc. (NYSE:NWL).
Click to continue reading and see 5 Mid-Cap Stocks with Recent Insider Purchases.
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Disclosure: None. Inside Scoop: 10 Mid-Cap Stocks with Recent Insider Purchases is originally published on Insider Monkey.