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2 Flashing Actions Loud Insider Buy Signs
Tracking insider share purchases can be a viable investment strategy. Company insiders – corporate officers and board members – are naturally positioned to be in the know, to know how company policies and performance will impact stock prices. They can use this knowledge to inform their own stock purchases – but not unfairly. By law, they must publicly disclose their own actions, and the general public can learn from these purchases and sales. Insider movements may or may not be informative. These are simple changes in portfolio holdings, usually small in magnitude, made to change a percentage of ownership or adhere to tax regulations. The informative movements, however, are different. These are the big buys and sells – and when an insider, or more insiders, start making informative stock moves, market watchers should take note. These are signs that something great may be in store. TipRanks tracks insider trades, using publicly released stock movements to track them. The Insiders’ Hot Stocks page provides the scoop on what stocks market insiders are buying so you can make informed purchases. We have selected two stocks with recent informative purchases to show how the data is working for you. Brown & Brown (BRO) Brown & Brown is an insurance company with over $ 2.3 billion in business annually. The company is based in Florida, has a market capitalization of $ 12.4 billion, has 300 offices and is the fifth largest insurance broker in the United States. Brown & Brown deals with risk management, providing insurance products to clients of all sizes: government agencies, professional organizations, businesses, corporations, families and individuals. Brown & Brown saw its revenue and profits increase year over year during the corona crisis – which makes sense, as a stable and reliable insurance company should expect their business to increase during this period. crisis. 4Q20 results showed revenue of $ 642.1 million, up 10.9% year-on-year. Profit was 34 cents per share, a 25% year-over-year increase. On the insider front, board member James Hay deposited $ 433,750 for a purchase of 10,000 shares on Jan. 29. It brings the insider feeling here into positive territory. Truist analyst Mark Hughes, rated 5 stars by TipRanks, considers Brown & Brown a solid choice for investors interested in the insurance industry. “The company is generating strong organic revenue growth, margins are expected to be stable up this year, and M&A activity has been strong, which should lead to strong revenue and earnings growth. in the coming periods. We believe that BRO shares remain a good way for investors to gain exposure to the recovery in the economy and to strengthen P&C prices, ”said Hughes. Consistent with his bullish approach, Hughes is pricing BRO a buy, and his price target of $ 55 indicates confidence in growth of around 25% for the next 12 months. (To see Hughes’ record, click here) Is the rest of the street okay? Ultimately, analyst consensus is rather mixed. Divided almost in the middle, 4 buy notes and 5 takes have been awarded in the past three months, giving the moderate buy status BRO. With an average price target of $ 51.44, the potential year-over-year gain is 17%. (See BRO’s stock market analysis on TipRanks) Crown Castle (CCI) The second insider pick we’re looking at, Crown Castle, is a real estate investment trust with a twist. The company owns and manages the communications infrastructure, particularly the locations of towers and transmitters so important to cellular networks. Crown Castle’s real estate portfolio includes over 40,000 towers, 70,000 small cell sites and 80,000 miles of fiber optic cables. The rollout of the new 5G wireless network has been a boon to the Crown Castle model over the past year. Crown Castle revenues were flat through 2020, ranging from $ 1.4 billion to $ 1.49 billion, with third and fourth quarter results both standing at $ 1.49 billion. For the fourth quarter, this was an 11% year-over-year gain. For all of 2020, CCI reported $ 5.3 billion, up 3.8% year-on-year. Crown Castle’s position was strong enough that the company increased its dividend payout by more than 10% in December. The new payment, $ 1.33 per common share, gives an annual payment of $ 5.32 and a return of 3.2%. Regarding insider trading, we see that Kevin Stephens, one of the directors of the company, paid $ 328,300 for a block of 2,000 shares. Stephens now owns $ 671,000 in CCI; this recent purchase almost doubled its total stake. 5-star analyst Colby Synesael, from Cowen, takes a very bullish stance on Crown Castle. He notes that CCI has “a new agreement with Verizon in which the carrier has agreed to lease Crown 15,000 small cells which will be installed over the next four years …” The analyst added.[We] estimate the mean. ARPU is $ 500 / month. (with a 1.5% escalator), which suggests an initial annualized value of around $ 90 million. The deal represents the company’s largest small cell transaction in its history… The deal brings Crown’s small cell backlog to ~ 30K from ~ 20K previously. Synesael’s confidence is evident from its outperformance (ie buy) rating on the stock. Its price target of $ 197 suggests a one-year increase of 21%. (To see Synesael’s track record, click here) Overall, Wall Street analysts like what they see here. CCI’s Strong Buy consensus rating is based on 8 recent reviews, or 7 purchases and a single Hold. CCI’s average price target is $ 177.25, which implies a 9% increase from the current share price of $ 177.25. (See CCI Stock Market Analysis on TipRanks) To find great ideas for stocks traded at attractive valuations, visit TipRanks Best Stocks to Buy, a newly launched tool that brings together all the information about TipRanks stocks. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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