Insider buying can serve as an impeccable tool for picking up trends from the stock market. If professionals trade stocks from companies they work in, it can be quite interesting considering that executives would know best about their company operations.
At 2iQ research, our analysts cover “Insider trades” of all kinds. Most of these trades prove to be well-timed, followed by exemplary surges in the stocks’ values. For the past month of July 2023, we found three issuers where insiders showed off their trading IQs to achieve maximum profits.
The Children’s Place (PLCE:US)
On July 5, the President and CEO of the children’s clothing company bought up to 43,000 shares at the value of $23.70 each. The CEO, Jane Elfers, has been with the company since 2010, and this purchase of PLCE shares marked her first in a long time.
Significant indeed, because PLCE shares have surged by almost 25.69% since Elfers’s purchase.
Domo Inc (DOMOS:US)
From March till July 2023, four insiders at Domo Inc have raised their holdings of DOMOS stock. In brief, their trades are as follows:
Ind. Director, Daniel David Daniel III bought 124,400 DOMOS shares in three trades in 2023. His most recent investment was worth $357,580 dated July 6.
CFO David R. Jolley bought 5,000 Class B common shares at a total value of $70,000 on April 12.
Founder and CEO Joshua James purchased 429,810 shares worth almost $6.07 million from his two transactions on March 31 and April 03.
Director John Pestana bought up to $991,500 worth of 72,500 DOMOS shares, in a single transaction dated March 08.
Since Director Pestana’s purchase, DOMOS’s stock price is up by nearly 27.58%. In its last trading session on August 7, the share value closed at $17.07.
Calavo Growers Inc (CVGW:US)
Insider investments can sometimes provide quite generous pointers toward the upcoming boost in a company's shares, and if that individual is a high-ranking member or a C-suite executive, the trade certainly demands undivided attention.
The international consumer goods and farm products company Calavo Growers (CVGW:US) recently experienced some interesting trades by its top-level insiders.
On July 12th and 13th, the President/CEO of the farming firm Lee Cole purchased 75,000 shares at an average price of $30.34 per share. The investment amounted to a staggering $2.3 million.
Just a day after on July 14, Chairman Steve Hollister acquired 2,000 shares at a price of $30.59. A notable trade amounted to $61,180 in total.
Comparing CVGW’s closing price on July 12 and at present, the stock’s value has surged by almost 24.73% since the CEO’s investment.
In conclusion, the exploration of insider trading offers intriguing insights into the dynamics of the stock market, particularly when it involves experts trading stocks from their own companies. The study of insider trades adds depth to our understanding of market behavior, but it is imperative for investors to approach such information with care and combine it with comprehensive research and analysis before investing.