Look What Insiders Are Buying Now

As my regular readers know, I frequently peruse the list of insider activity in stocks from a variety of sources. Why is this information important? I look to this information for what insiders think of the current valuation of the market. For instance, insiders were heavy buyers of equities in March, which gave an additional vote of confidence in buying that dip. Currently, insider selling has been much heavier, which is one of many reasons I think a decent pullback in the market is long overdue. I also turn to insiders to provide starting points for research for potential trade ideas. Today, we look at several names that have seen some significant insider buying in recent weeks. Let's start with Amerco , which will be the first stock I do a deeper dive on this week. This company is owner of omnipresent U-Haul trucks and storage spaces. Last week the company's chairman and one beneficial owner scarfed up more than $6 million in new shares. It was the first insider activity in this stock since March. Amerco should be a natural play for an investment theme I have been playing since the pandemic hit. That is the migration out of the large cities such as New York, something I was a participant in myself in June. Also on my research list is the must lesser known StoneX Group . This financial name, which I had never heard of, came public early in the year. The company offers risk management and hedging services, execution and clearing of exchange-traded and OTC products, voice brokerage, market intelligence, and physical trading, as well as commodity financing and logistics services, according to its website. SNEX stock is also seeing its first insider buying since the company's IPO. Two insiders bought just over $800,000 worth of shares last week. The stock is down more than 10% from recent highs and seems cheap on an earnings basis. It also recently reported quarterly results showing revenues grew over 19% from a year earlier. This is another name to dig further into. Lastly, let's discuss a name I recently took a small stake in, partly due to insider buying. DIRTT Environmental Solutions is a Canada-based designer and manufacturer of customized prefabricated interior solutions for commercial spaces. A beneficial owner purchased over $4 million worth of new shares to begin December. And several officers, including the COO and CEO, were much smaller purchasers earlier in the year. DIRTT is unique in that it leverages its proprietary software to streamline the entire procedure from design to installation. It has shipped over $1 billion of modular solutions since its inception in 2004. The client can track the entire project from sales to installation on its online platform and make changes if necessary. This cuts time and cost to projects. The company was obviously impacted by the pandemic and its effect on office space buildouts. New management at DIRTT has an ambitious plan to increase sales growth and raise margins over the next four years. If successful, it could result in the company achieving adjusted EBITDA of $100 million by FY 2023. Given that DIRTT's market cap is just under $200 million, if the company even gets near that projection, there is powerful potential upside in this name. That is definitely enough to make this a watch item position for me while I keep an eye on how the company executes on its plan and as hopefully some normalcy returns to this market as vaccines are distributed.

Look What Insiders Are Buying Now

Here are three interesting names that have seen some significant insider buying in recent weeks.

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