Should You Buy the Dip and Follow Insiders into These 10 Stocks?

1. 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, 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 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 is also one of the 12 best electric utility stocks to buy now.

Overall, PCG is first among the 10 stocks with recent insider purchases. 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 Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.