We recently published a list of Should You Buy the Dip and Follow Insiders into These 10 Stocks?. In this article, we are going to take a look at where PG&E Corporation (NYSE:PCG) stands against other stocks insiders were piling into recently.
After a turbulent week, stocks began recovering on Monday, with all three major indexes posting gains. The broader market index rose 0.64%, blue-chip stocks gained 0.85%, and the NASDAQ Composite, still in correction territory, closed 0.31% higher.
Early Tuesday, stocks began to decline again as investors focused on the Federal Reserve’s two-day policy meeting starting today. The key announcement for traders will come Wednesday when the Fed announces its interest rate decision, followed by a press conference with Fed Chair Jerome Powell. Since September, the Fed has cut interest rates three times and still, the broader market entered a correction.
Despite uncertainty from President Trump’s shifting tariff policies and geopolitical strategies, some analysts remain optimistic about AI’s future.
“We retain our view that there is more to go in stocks, and we keep our conviction in the long-term opportunities in stocks linked to both the artificial intelligence and power and resources transformational innovations,” UBS chief investment office said in a note Monday, according to CNBC.
Amid turbulence and uncertainty on Wall Street, looking at recent insider trades can provide valuable insights, as executives often have a deeper understanding of their companies. For example, when a CEO or CFO buys company stock, it may indicate strong confidence in the business’s future.
However, insider selling doesn’t always signal a lack of confidence. It could be due to personal financial needs or a desire to diversify investments. These sales are often made through pre-arranged plans, like 10b5-1 plans, to avoid any appearance of improper timing.
While insider activity can be informative, it’s important to consider it alongside the company’s financial health, market trends, and industry developments.
Our Methodology
We used Insider Monkey’s insider trading stock screener to analyze recent trading activities in several popular stocks. For each stock, we noted the number of insiders who recently acquired 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).
Brightly-lit nighttime view of an electricity power grid with distribution lines and transmission substations.
PG&E Corporation (NYSE:PCG)
Number of Insiders Buying: 5
Market Capitalization: $37.53 billion
First on this list of 10 recent insider purchases is PG&E Corporation (NYSE:PCG), whose subsidiary Pacific Gas and Electric Company is one of the largest utility companies in the U.S. The Oakland, California-based company provides electricity and natural gas to customers in northern and central California. It generates electricity using nuclear, hydroelectric, fossil fuel-fired, fuel cell, and photovoltaic sources.
Insider Monkey recently covered a bull case theory on PG&E Corporation stock by Acid Investments. In summary, the thesis argues that after the recent Los Angeles wildfires, the stock has been unfairly punished even though the fires happened outside its service. What’s more, while Edison International (NYSE:EIX) operates in the affected areas and is facing a lawsuit, its stock dropped less significantly than PG&E.
In 2019, PG&E (NYSE:PCG) filed for bankruptcy caused by wildfire liabilities, but the company made a major restructuring. Acid Investment argues that the market’s harsh reaction is an overreaction and that the utility sector as a whole has been stable. What’s more, the company projects strong earnings growth of 10% annually in 2025.
How do insiders feel about the company’s recent punishment, was it deserved or is this just a good opportunity to acquire more shares while the price is lower? Well, in February and March, five insiders acquired a total of around $321,912 worth of PG&E Corporation shares at an average price of $15.82 per share.
Year-to-date, the stock dropped 15.21% and is now trading at $17.11 per share. Over the past 12 months, PG&E Corporation returned 6.54% to its investors.
Based on 14 analysts’ estimates, PG&E Corporation stock is a “Strong Buy” with a 12-month stock price target of $22.25. The average price target suggests a 30.04% upside from the latest price.
PG&E (NYSE:PCG) is also one of the 12 best electric utility stocks to buy now.
Overall, PCG ranks 1st on our list of stocks insiders were piling into recently. While we acknowledge the potential of PCG, 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 PCG 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.
