Insider buying is the simple act where the people running a company are the ones to fill their pockets with the company’s stock. However, this is one of the trademarks of a bullish market: a company insider purchasing stock means he or she has high hopes for the future.
Analysts at 2iQ research condensed their lists to find six cases of insider buying in February’22. In all these cases, insiders stocked up prior to an impressive price increase in the market:
Poet Technologies Inc (PTK: CN)
Founded in Canada, Poet Technologies is a global leader in chip-scale photonic solutions. As of yet, the company’s current Market Cap is CAD 345 M.
Kicking off with Insiders’ first transactions of 2022, CFO - Thomas R. Mika and President - Vivek Rajgarhia bought PTK on February 1 and February 4 respectively.
The CFO stocked up on 25,000 shares worth a total of CAD 19,500. Although not sounding much, it sent his holdings skywards by nearly 14.29%. Three days later, Vivek Rajgarhia spent CAD 13,200 on 15,000 shares.
PTK closed at CAD 12.44 on March 11, 2022; its highest closing price for 2022. This marks a rise of 51.7% since CFO Mika’s purchase. Additionally, a Stock Split was applied on February 28, 2022, followed by March 14 news that PTK would be trading on Nasdaq under the ticker POET. Recently, the stock closed at CAD 10.20 on March 17, 2022.
Altius Renewable Royalties Corp (ARR: CN)
The next Canadian entry on this list went public in late February 2021, when it commenced trading under the ticker ARR on TSX. With a current Market Cap of CAD 354 M, the company is a provider of renewable energy.
On February 1, 2022, two insiders at Altius purchased company stock. While Director, Andre Gaumond made multiple transactions continuing from 2021, CEO - Brian F. Dalton also joined him in raising their respective holdings of ARR. To sum up, both purchased up to 4,060 shares at a total value of CAD 36,175.
ARR closed at CAD 9.14 on the day of Gaumond and Dalton’s purchase but since then has fluctuated to CAD 14.39, its closing price on March 17, 2022. Since IPO, ARR closed its all-time high price of CAD 14.42 on February 28, 2022, signifying a rise of 57.77% since the Insiders’ purchase.
As per the company’s Q4 and 2021 results, around 27 million shares of ARR were issued. Moreover, ARR was stated to hold or have entitlement over 16 sustainable energy projects as per its joint venture with Great Bay Renewables (GBR).
Nuvectis Pharma Inc (NVCT: US)
This stock only recently went public - dated February 4, 2022 - but so far, has been enjoying a stellar performance. The American biopharmaceutical company’s IPO kicked off with 3.2 million shares for a price of $5.00 each. Presently, the company’s Market Cap is standing at 71.3 M USD.
Since IPO, NVCT stock has been purchased by insiders on numerous occasions. The company Founder, Chairman, President, and CEO, Ronald E. Bentsur bought NVCT at its IPO price, giving a total value of $1 M. He later bought the stock in 4 more transactions: these trades added up to a total of 49,000 shares, worth $254,075. Other Insiders included Shay Shemesh, the company’s Founder and Chief Level Officer, who spent $10,033 on 2,946 shares. Founder and Chief Scientific Officer, Enrique Poradosu, also added 4,600 stocks to his holdings at a value of $15,834 on two occasions.
NVCT reached its highest value since IPO on March 14, 2022; closing at $9.1. Compared to its price on February 14, 2022 - the last insider purchase - the stock has climbed higher by almost 68.2%. As of March 17, 2022, the stock’s value is $7.63.
In more positive news, Nuvectis participated in a research journal from the University of Edinburgh regarding the use of its inhibitor NXP900 in clinical developments regarding breast cancer. This also may have propelled the stock further.
Minds Lab Inc (377480: KS)
The South Korean AI company too recently received an IPO on November 16, 2021, for KRW 18.13 billion, and has a current Market Cap of KRW 168.3 B. The company was founded by its now CEO, Yoo Tae Joon, who saw AI as an outlet for humans to focus more on unwinding and leisure, while AI technology can efficiently aid in the non-creative aspects of work. “AI assistants can work at odd hours and can thus alleviate job stress for humans,” the CEO said, “Also, their average insurance contract success rate is 57%, which is higher than human representatives' 40%.”
Minds Lab’s CEO, Yoo Tae Joon, bought 4,000 shares of the company stock worth a total value of KRW 83.60 M, signifying his first insider buying on February 16, 2022.
Since the CEO’s purchase, share prices have ascended by 35.2%. On March 16, 2022, it closed at a price of KRW 26,850.
SSAB Corp (SSABB: SS)
The Swedish company has been one of the top producers of steel for nearly 140 years, and is focused on creating a world with sustainable steel products. With a current Market cap of SEK 60.6 B, SSABB’s value has climbed higher and higher over the past years.
The company’s CTO, Martin Pei, bought 2,000 shares of SSABB on February 14, 2022, marking his second buying in 2022. With his trade amounting to SEK 96,080, the stock’s closing price that day was SEK 53.74.
On March 15, 2022, the stock closed at SEK 64.44, giving away a rise of 19.91% in less than a month since Pei’s purchase.
Prior to the rise, the company’s year-end report, published January 28, 2022 stated: “The full-year 2021 was the best in SSAB’s history with record results posted by all divisions.” Adding to it, earnings for 2021 were a whopping amount of SEK 18,837 million. While the stock went along a steady path, it is continuously pushing higher.
Kistos PLC (KIST: LN)
Headquartered in the United Kingdom, Kistos operates by acquiring companies under the ‘energy supplier’ tag. The company debuted in the stock market on November 25, 2020, and currently holds a Market Cap of £357.97 M.
Andrew Philip Austin - Founder and Exec. Chairman - spent a stirring amount of £489,975 on 150,000 shares of KIST. Dated February 15, 2022, this is the company’s lone case of insider buying since IPO all the way back in November’20.
The stock closed at £410.00 on March 17, 2022, a value 26.35% higher than £324.50 which was KIST’s share value during Austin’s purchase. On March 11, 2022, KIST landed its peak price for the year when it closed at £431.00.
Additionally, in late January 31, 2022, Kistos detailed its plans to acquire 20% interest in multiple gas fields along the offshore coast of the UK.
These six cases where Insider buyings were a trailer for something big coming along, were only a few drops in the ocean. More and more insider buyings currently happening are strong giveaways that a stock is headed for a bullish future.