We recently published a list of 10 Mid-Cap Stocks Insiders Are Buying Recently. In this article, we are going to take a look at where Azenta, Inc. (NASDAQ:AZTA) stands against other 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 technician working with genomic sequencing equipment.
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 (NASDAQ:AZTA) 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 (NASDAQ:AZTA) 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 (NASDAQ:AZTA) 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.
Overall, AZTA ranks 10th on our list of mid-cap stocks insiders are buying recently. While we acknowledge the potential of AZTA, 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 AZTA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.