Four Stocks That Saw Promising Cluster Buying in May 2023

4 minutes read
Page's meta description as image.

While an Insider’s purchase of their company stock itself seems like a promising bet, the bullish signal is amplified when multiple insiders invest. Referred to as ‘Cluster buying’, this case is where three or more Insiders at a company buy their own company stock during the same time period.

In the past month, 2iQ Analysts found four cases where multiple insiders stocked up on their company shares. Adding to the intrigue is that most of these insiders have since then seen grand returns from their purchases.

Telos Corp (TLS:US)

2iQ Analysts reported cases of Cluster buying by four Telos Insiders, from May 11 to 16, including the company’s Chairman and CEO. The tech company, which provides cyber to cloud security solutions, also reported its Q1 2023 results a day before the buyings were revealed.

  • Chairman and CEO John Wood purchased 400,000 shares at a value of $2.27 per share. 

  • Member of the Board Fredrick Schaufeld purchased 435,305 shares at a value of $2.32 per share.

  • Board member Bradley Jacobs who purchased 5,000 shares at a value of $2.20 per share.

  • Exec. Vice President of Security Solutions Mark Griffin purchased 10,000 shares at a value of $2.80 per share.

In total, these trades amounted a value of $1.94 million. Since the first purchase on May 11, TLS’s stock price has surged by nearly 24.32%. These investments are noteworthy primarily because of the high-value buy by Telos’ CEO who has been a part of the company for more than 30 years. Furthermore, Board member Schaufeld is a well-known personality in the field of finance and investments.

Albemarle Corp (ALB:US)

When insiders make a move in relation to their holdings, it sometimes can provide unparallel insights regarding the future prospects of a company's shares. Analysts at 2iQ kept a keen eye on insider trades at Albemarle Corp, where between May 5 and May 10, 2023, three top level insiders increased their holdings.

In May 2023, a large cluster purchase was reported by 2iQ.

  • Chairman, President, and CEO Kent Masters bought 5,470 shares at $181.64 per share.

  • President, Albemarle Energy Storage Eric Norris bought 1,260 shares at $195.49 per share.

  • Executive Vice President, General Counsel Kristin Coleman bought 1,373 shares at $182 per share.

The total purchase volume by these three insiders amounts to nearly $1.49 million. Since the purchase, all these investments are up nearly 14.5% on average. The insiders surely secured quality gains on their investment and it’s even more interesting when the company CEO and presidents all chip in on the stock. This may have aided Albemarle’s news that it was planning to expand its lithium mining operations into other countries.

Ouster Inc (OUST:US)

Cluster buying often points to the bullish sentiment that the insiders of a firm hold. Interpreting this signal at the right instance can undoubtedly result in wonders. 

Between the dates of May 16 and May 26, the lidar technology firm Ouster Inc, of American origin, experienced prominent investments by three of its top level insiders.

  • Co-Founder and CTO Mark Frichtl bought 25,700 shares at $5.84 per share. 

  • Co-Founder and CEO Angus Pacala bought 86,300 shares at $5.81 per share.

  • Director Virginia Boulet bought 31,000 shares at $6.07 per share.

With regards to the insiders purchase, the share now trades at $6.68 apiece. This is a positive change of more than 13%. Indeed, a good investment stroke played by the insiders. Adding to the hefty purchases made by the company execs and co-founders, Ouster also disclosed its Q1 earnings with increased revenues and a more positive outlook for the year.

Enphase Energy Inc (ENPH:US)

Analysts at 2IQ identified intriguing cluster buying activity between April 26 & May 02 at an American energy tech firm that develops and manufactures solar micro-inverters. Two high profile insiders at Enphase Energy bought 64,300 ENPH shares between the time span. The insiders include 

  • Vice President & Chief Financial Officer Ya-Ling (Mandy) purchased 3,500 ENPH shares.

  • Board member Thurman John Rodgers purchased 60,800 ENPH shares.

Both insiders invested nearly $10.65 million combined at a time when shares were trading at nearly $160 per piece. Keeping purchase price in view, the stock has surged more than 15% till now, as the stock is trading near $185 mark as of today. 

2iQ Analysts cover trading by company insiders as well as Cluster buying on a regular basis. To read more on these, see the 2iQ blog.