3 stocks Signs of strong buying inside
Sometimes following a leader is the best investment strategy. And people within corporations have long been popular leaders to follow. Their combination of accountability to their shareholders and access to “under the hood” information about their companies gives their personal investment choices an air of authority. The most important thing about these insiders is that anything else they do, they expect to keep their companies. to profitability. Shareholders want a return on investment, boards want accountability, and company officers are compliant with both standards. So when they start buying their own company shares, it is a sign that investors should continue to investigate. investors to follow them. Even better, TipRanks collects information on the Insiders’ Hot Stocks page and provides tools and data filters to easily navigate raw data. We’ve selected three stocks with recent informational purchases to show you how data works for you. Del Taco Restaurants (TACO) We’ll start with the popular Del Taco, the California taco chain. Del Taco boasts a market capitalization of $ 344 million, over 600 restaurants and a loyal fan base, giving it a solid base in the fast food franchise market. Most of the company’s locations are west of Mississippi, but the company has made forays into the eastern United States. Like many brick-and-mortar, traffic-dependent companies, Del Taco had a difficult year. The coronavirus crisis has reduced traffic, social and economic blockade policies have reduced revenue streams. However, the company began to recover. After strong net losses at the beginning of the year, EPS returned to positive figures, and revenues in Q3, $ 120 million, rose more than 15% sequentially. Stock prices, which fell by two-thirds at the height of last winter’s economic crisis, have made up for their losses. TACO now trades 17% for that year. The latest acquisition, which helps tilt the sentiment needle into positive territory, is from board member Eileen Aptman, who bought 88,952 shares, exceeding $ 650,000. Wedbush analyst Nick Setyan covers Del Taco and rates the shares as Outperform (ie Buy). His $ 13 demonstrates his confidence, indicating room for a 40% increase. (To follow Setyan’s track record, click here) Supporting his position, Setyan wrote: “We believe that TACO’s current assessment is based on an overly pessimistic assessment of its medium- and long-term fundamentals in a post-QSR environment. -COVID … Even with what we believe are conservative assumptions, unit growth and margin assumptions until 2022, we estimate an EPS increase of 12% in 2022. We estimate that 1% of comp. incremental would be equivalent to 0.04-0.06 USD in incremental EPS and every 10 bps of incremental margin is equivalent to 0.01 USD in incremental EPS in our model. “In general, there are few stocks on the street heading towards Del Taco at the moment, with only one other analyst intervening with a view to the stock. An additional holding rating means that TACO qualifies as Moderate Purchase. The average target price is 11 USD and implies a potential increase of ~ 19%. (See TACO stock analysis on TipRanks) CuriosityStream (CURI) CuriosityStream follows, an online video streaming channel in the educational segment. CuriosityStream specializes in real video content and offers subscription services. The channel claims over 13 million subscribers globally. Its founder, John Hendricks, first gained fame by creating Discovery Channel, a similarly themed cable television channel, in 1985. CuriosityStream is new to public markets, having an IPO earlier this year through a merger with Software Acquisition. a special acquisition company (SPAC) set up as a “blank check” company to make the transaction. It’s no surprise to see that insiders are making big acquisitions in new stocks, but the moves on CuriosityStream are worth noting. John Hendricks made three large acquisitions earlier this month, buying blocks of 15,473 shares, 26,000 shares and 11,684 shares over a four-day period. Hendricks paid $ 473,561 for the new shares. Covering the actions for B. Riley, analyst Zack Silver wrote: “We see CURI as well positioned to take advantage of the growing global streaming market, establishing itself as the factual programmer for the Era TV post-payment. The on-demand video service (SVOD) of the CURI subscription is differentiated not only by the large volume of clean factual titles available on the platform, but also by its convincing price … we expect the CURI strategy to generate content through multiple streams revenue will allow for a more efficient way to scale … ”Silver values the stock on Buy, and its price target of 16 USD implies a 40% increase per year. (To follow Silver’s track record, click here) CURI has a consensus assessment of the moderate buying analyst based on 2 recent purchase reviews. The average target price is $ 14, which suggests that this stock is up ~ 23% from the current trading price of $ 11.50. (See CURI Stock Analysis on TipRanks) Allegheny Technologies (ATI) Last but not least is Allegheny Technologies, a metallurgy company based in Pittsburgh, Pennsylvania. Allegheny has two business segments: High Performance Materials and Components, specializing in titanium and nickel-based alloys and Advanced Alloys & Solutions, which includes stainless and specialty steels, electrical steels, duplex and zirconium alloys, hafnium and niobium alloys. The company’s metal technology is used in the electrical industry, the automotive sector, the aerospace industry and oil and gas production. Allegheny’s revenues and shares fell this year as the company was hit by the crisis. Supply chain disruptions, distribution networks and customer orders have had a negative impact, as have social and economic closure policies. Quarterly revenue fell 37 percent from $ 955 million in the first quarter to $ 598 million in the third quarter. Shares have fallen by 21% so far. All this seems to make ATI a poor choice of shares, but the company has used the time to wisely reduce and reorient its production models. hit his position earlier this month from Neutral to Buy. He wrote: “We are modernizing ATI to buy from Hold after the company’s planned exit from stainless steel. This move changes ATI’s historical risk profile, eliminating the most volatile vertical … Separating ATI’s legacy into stainless steel has long been a sought-after goal for investors; the exit now also allows ATI to avoid maintenance and a potential for stock overflow during the recovery phase. In addition, Sullivan notes that business in the aerospace sector will soon recover, providing an advantage for Allegheny: will correlate directly with an aerial recovery. “The Sullivan Buy rating comes with a $ 21 price target, which implies a 27% increase in the next 12 months. (To follow Sullivan’s track record, click here) In terms of inside trades, we find that the company’s chief financial officer and SVP, Donald Newman, bought 12,500 shares this month, paying over $ 210,000 for the block. Its total hold is now 80,042 shares, valued at $ 1.3 million. In total, Allegheny gets a moderate buy rating based on a uniform split between 4 reviews, 2 Purchases and 2 Holdings. The shares are priced at $ 16.32, and the average price of $ 18.25 implies a growth potential of 12%. (See analysis of ATI shares on TipRanks) To find good ideas for trading stocks at attractive valuations, visit TipRanks Best Stocks to Buy, a newly launched tool that brings together all the capital prospects of TipRanks. Disclaimer: The views expressed in this article are those of the analysts presented only. The content is intended for informational purposes only. It is very important to do your own analysis before making any investment.