This article presents an overview of Largest Insider Buys: Top 5 Stocks. For a detailed overview of such stocks read our article, Largest Insider Buys: Top 10 Stocks.
5. Skyworks Solutions Inc (NASDAQ:SWKS)
Number of Hedge Fund Investors: 31
California-based semiconductor company Skyworks Solutions Inc (NASDAQ:SWKS) is one of the stocks with recent insider purchases. Skyworks Solutions Inc (NASDAQ:SWKS) CEO Liam Griffin on May 2 snapped up 11,142 shares of Skyworks Solutions Inc (NASDAQ:SWKS) at $90 per share. Since then through May 3 market close Skyworks Solutions Inc (NASDAQ:SWKS) shares have gained 3.11%.
Last month Skyworks Solutions Inc (NASDAQ:SWKS) posted second quarter results, which show that Skyworks Solutions Inc (NASDAQ:SWKS) earned $1.55 per share in the period, surpassing estimates by $0.03. Revenue fell 8.7% year over year to $1.05 billion, meeting estimates.
4. Cleveland-Cliffs Inc (NYSE:CLF)
Number of Hedge Fund Investors: 39
Cleveland-Cliffs Inc (NYSE:CLF) is one of the stocks with latest insider purchases in May. On May 1, 2024, Ron A. Bloom, who is a director at Cleveland-Cliffs Inc (NYSE:CLF) board, bought 25,000 shares of Cleveland-Cliffs Inc (NYSE:CLF) at $17 per share. The total value of this transaction was $428,875. Over the past five days the stock is down 1.6%. Cleveland-Cliffs Inc’s (NYSE:CLF) CEO Lourenco Goncalves also bought 60,000 shares of Cleveland-Cliffs Inc (NYSE:CLF) at $16.76 per share on May 1.
Of the 933 hedge funds tracked by Insider Monkey, 39 hedge funds had stakes in Cleveland-Cliffs Inc (NYSE:CLF) as of the end of the fourth quarter of 2023.
3. Enphase Energy Inc (NASDAQ:ENPH)
Number of Hedge Fund Investors: 43
Mandy Yang, Enphase Energy Inc’s (NASDAQ:ENPH) CFO, on May 2 piled into 4,000 shares of Enphase Energy Inc (NASDAQ:ENPH) at $104.24 per share. Since then the stock is up 7.7%.
Aristotle Atlantic Large Cap Growth Strategy stated the following regarding Enphase Energy, Inc. (NASDAQ:ENPH) in its fourth quarter 2023 investor letter:
“We sold our position in Enphase Energy, Inc. (NASDAQ:ENPH) due to slowing demand for residential solar energy, primarily driven by rising interest rates and potentially increasing competition. During the second quarter earnings report in July, the company lowered its guidance for the third quarter microinverter, and we believed there was a heightened risk that Enphase would lower guidance again. We remain optimistic about Enphase’s competitive advantages over the long term in the residential solar energy market, but we prefer to wait for more apparent evidence of a rebound before considering a reinvestment in the company.”
2. Delta Air Lines, Inc. (NYSE:DAL)
Number of Hedge Fund Investors: 53
Delta Air Lines, Inc. (NYSE:DAL) is one of the stocks that saw recent insider purchases this month. On May 1, 2024, Willie Chiang, a director at Delta Air Lines, Inc. (NYSE:DAL), snapped up 10,000 shares of Delta Air Lines, Inc. (NYSE:DAL) at $49.50 per share. The total worth of this transaction was around $494,955. Over the past five days Delta stock has gained about 3.4%.
Out of the 933 hedge funds in Insider Monkey’s database, 53 hedge funds had stakes in Delta Air Lines, Inc. (NYSE:DAL) as of the end of 2023.
Oakmark Fund stated the following regarding Delta Air Lines, Inc. (NYSE:DAL) in its first quarter 2024 investor letter:
“Delta Air Lines, Inc. (NYSE:DAL) is a leading global airline. Of the big three U.S.-based airlines (Delta, United and American), we see Delta as the most competitively advantaged. We believe the company’s years of industry-leading operational performance and investments in the customer experience have established Delta as the premium brand in the industry. We also think its geographically optimal hubs, high local market share, robust loyalty program and unique corporate culture all support healthy returns on capital. Delta currently trades at 6x our estimate of normalized earnings per share. We believe this is an attractive valuation for a competitively advantaged and growing business in an out-of-favor industry.”
1. CVS Health Corp (NYSE:CVS)
Number of Hedge Fund Investors: 67
CVS Health Corp (NYSE:CVS) saw important insider buying activity while its shares were tumbling to 52-week lows amid disappointing Q1 results. On May 1, CVS Health Corp (NYSE:CVS) said its adjusted EPS in the first quarter totaled $1.31 per share, missing estimates by $0.39. Revenue in the quarter jumped 3.7% year over year to $88.4 billion, missing estimates by $800 million.
Michael F. Mahoney, a director at CVS Health Corp (NYSE:CVS), snapped up 9,181 shares of CVS Health Corp (NYSE:CVS) at $54.49 per share on May 2. Since then the stock has lost about 0.73%.
In its fourth quarter 2023 investor letter, Vltava Fund stated the following regarding CVS Health Corporation (NYSE:CVS):
“Not every transaction creates value. Some transactions destroy company value. An example of such transaction is CVS Health Corporation (NYSE:CVS)’s acquisition of Oak Street Health in early 2023. This acquisition cost CVS $10.6 billion, and, based on metrics cited by the company itself, it seems to us that it was a waste of money for the most part. Unfortunately, CVS has its own history of overpriced acquisitions. The last one prior to that was in 2018, when CVS bought health insurer Aetna for $69 billion. We had assumed that CVS management, which has since changed, would recognise that mistake and learn from it. We were wrong. The acquisition of Oak Street Health is both disappointing and a warning to us. We now have a company in our portfolio whose capital allocation we consider to be poor and that should not be there. Unfortunately, the situation is complicated by the fact that the CVS stock is now very cheap and therefore we are reluctant to dispose of it just yet. We probably will do so, however, when the opportunity arises.”
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