We recently published a list of 10 Stocks Insiders Are Buying In March. In this article, we are going to take a look at where Matador Resources Company (NYSE:MTDR) stands against other stocks that insiders are buying in March.
As President Donald Trump’s on-again, off-again tariff policy continues, so does turbulence in the stock market. The broader market declined by 10.1% from its record close in February, officially entering a correction.
According to Adam Turnquist, chief technical strategist for LPL Financial, uncertainty about tariffs is among the main culprits behind the selling pressure. This week, all three major indexes have declined by more than 4%, reports CNBC.
On Wednesday, the Bureau of Labor Statistics reported that February’s prices for food and services rose less than many experts expected. The consumer price index increased by a seasonally adjusted 0.2% for the month, bringing the annual inflation rate to 2.8%, slightly below economists’ projections.
Amid all this uncertainty, the question is: Could this be the right time to buy the best stocks? History has shown that buying undervalued stocks often presents great growth opportunities. Will there be growth soon? It’s hard to predict, though some analysts are betting on the growth potential of AI technology.
At times like these, it might be useful to look over recent insider trades, because executives usually have more insights into their companies. For example, when a CEO or CFO buys company stock, it can indicate strong confidence in the business’s future.
Conversely, insider selling doesn’t always indicate a lack of confidence; it can result from personal financial needs or efforts to diversify investment portfolios. Executives often carry out these transactions through pre-arranged plans (such as 10b5-1 plans), designed to prevent any perception of improper timing.
While insider activity can provide valuable insights, it’s crucial to evaluate it alongside other factors, including the company’s financial health, market trends, and industry developments.
Our Methodology
To identify the 10 stocks insiders are buying in March we used Insider Monkey’s insider trading stock screener and looked for stocks where at least three insiders bought shares this month. With each stock, we note the number of insiders who recently bought shares and the company’s market capitalization.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A pipeline snaking its way through the hills and valleys of the Delaware Basin.
Matador Resources Company (NYSE:MTDR)
Number of Insiders Buying: 10
Market Capitalization: $5.813 billion
First among the 10 stocks insiders are buying in March is an energy company, Matador Resources Company (NYSE:MTDR). Based in Dallas, Texas, the company is focused on the acquisition, exploration, development and production of oil and natural gas resources in the U.S. It operates in two segments: Exploration and Production, and Midstream. It is also among the 10 deep-value stocks to buy now.
For the full 2024, Matador Resources (NYSE:MTDR) disclosed a record annual average production of 170,751 BOE (barrels of oil) per day. Net income amounted to $885.3 million or $7.14 per diluted share, which compares to net income of $846,07 million or $7.05 per diluted share in 2023. Revenue was $3.50 billion, compared to $2.81 billion in the prior year.
In March, 10 insiders, including the chairman and CEO, and CFO acquired a total of around $561,615 worth of Matador shares at an average price of $46.61 per share. Year-to-date, the stock declined 16.58% and is now trading at $46.93 per share. Over the past 12 months, Matador shares lost 29.31%.
The consensus rating on Matador stock from 15 analysts is “Strong Buy” with a price target of $74.47, according to StockAnalysis.
Overall, MTDR ranks 1st on our list of stocks that insiders are buying in March. While we acknowledge the potential of MTDR, 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 MTDR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
Hedge Fund Resource Center