Insiders know their company the best. So, when investors notice stocks with heavy insider buying, there's often a good reason for it.
There’s a saying among investors. Insiders have many reasons to sell a stock, but there’s usually only one reason why they buy. That is, they perceive their company’s stock is undervalued and they see an opportunity to capitalize on that.
This creates an opportunity for retail investors. When you see a pattern of insider buying on a stock, that can signal a buying opportunity.
Of course, insider buying isn’t the only signal that you should use. You’ll also want to see the buying activity supported by fundamental and technical signals. That’s what you’ll see in these three stocks that have heavy insider buying.
Insider Buying Stock #1: Norwegian Cruise Lines
My first example is the cruise stock, Norwegian Cruise Line Holdings (NYSE: NCLH). After shares of NCLH gapped down from about $22 to $18.24 after its third-quarter earnings report, three insiders bought the stock.
The report wasn’t that bad. Norwegian beat on earnings, but had a slight miss on revenue. Nevertheless, the cruise ship operator reported strong demand, momentum building for their luxury portfolio, and balance sheet improvements. However, the report came on a day when the broader market was spooked, so consumer-facing stocks like NCLH were acutely impacted.
On November 6, EVP and CFO Mark Kempra bought $197,051 worth of stock. Chief Luxury Officer Jason Montague bought $252,020 worth of the stock. And the President and CEO, Harry Sommer picked up $462,932 worth of the NCLH stock.
At $18.24 a share, NCLH is oversold at a level of support dating back to June. It's also oversold based on other technical signals such as the relative strength indicator (RSI), MACD, and Williams' %R. The last time it became this oversold, NCLH stock ran from a low of approximately $15 a share to a high of about $27 a share.
Insider Buying Stock #2: Matador Resources
Turning to the energy sector, my next example is Matador Resources Company (NYSE: MTDR). This was another example of a stock falling despite the company posting solid earnings that was in line with other upstream oil companies that are drilling at maximum capacity.
When it comes to upstream oil companies, where they’re drilling makes all the difference. Matador doesn’t operate in the coveted Permian Basin, but they have a significant presence in West Texas’s Delaware Basin.
Chairman and CEO Joseph Foran bought 4,000 shares on November 4 for $153,750. This was after MTDR stock slipped from about $50 to less than $39 with the pullback in oil prices.
The good news here is that MTDR is now oversold, and the company just declared a dividend of just over 37 cents per share, which is payable on December 5 to shareholders of record as of November 10.
In its third quarter, the company's EPS of $1.36 beat by 13 cents. Revenue of $939.02 million, up 4.4% year over year, beat by $73.69 million.
Insider Buying Stock #3: Amrize Ltd.
Amrize Ltd. (NYSE: AMRZ) provides building materials in North America. The company is favorably positioned in the “Made In America” movement. However, after getting a small bounce after its October 29 earnings report, AMRZ stock is under pressure.
Insiders saw that as a buying opportunity. The president of Building Materials, Jaime Hill, picked up 4,000 shares of AMRZ on November 4 at $50.685, for a total transaction value of $202,740.
In October, analysts at Wells Fargo initiated an overweight rating on the stock with a price target of $57 a share. In addition, Citi analysts initiated a buy rating on AMRZ, with a $60 price target. The firm "views Amrize, the top cement producer in North America, as the best way to play the improving cement market in 2026. The company is positioned to benefit from a demand pickup in public and non-residential construction," as noted by TipRanks.com.
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