Top insider trades (Mon, Nov 24)

Connor’s Commentary

Another bullish day of insider buying. There were 233 new insider trades filed, and over 50% of the unscheduled trades were purchases.

• A director at MSC Industrial (MSM) bought another $2M just a couple of weeks after buying $15M

• A director at Hallador Energy (HNRG) bought $250k of the stock

• The CEO at Nerdy (NRDY) bought $250k of the stock on this 30% dip

• Marriot Vacation (VAC) insiders continue to buy the dip

• SmartRent (SMRT) CEO is buying the stock again. He just bought $200k after buying $900k in August/September

• CEO at MP Materials (MP) sells $16M (their first sale since the run-up)

• The SVP, Real Estate Development at RAYONIER INC (RYN) sells $300k. His only previous purchase was in 2022 (stock fell 18% in the following year)

• A director at Circle Internet Group (CRCL) sold another $500k after selling $2.75M just a few days ago

• and much more…

I go into more depth on these companies in the CEO Watcher Premium sections below.

Commentary

This weekend, I shared on Twitter/X a list of 10 companies with insiders buying the post-earnings dip. I’ve included the table below, but you can click here for the post which includes quick notes on all of these companies.

There is a decent chunk of research that shows that insider dip buying leads to significant outperformance:

• Seyhun wrote a few papers (and a book) in the 90s and found that insider buying spikes after large dips and correlates with >6% outperformance in the following 12 months

• Lakonishok & Lee (2001), “Are Insider Trades Informative?” found basically the same thing

• Jenter (2005), “Market Timing and Managerial Stock Incentives” found that execs buy when they believe the market is over-penalizing their firm, and that dip buys have the highest expected value

• Ben-David & Roulstone (2012), “Do Insider Trades Reflect Superior Knowledge?” found that insiders buy stock dips, and these buys predict fundamental improvements

We’ve also found the same thing in our data back to 2009. I plan to share some of our data on Twitter/X later today (and in future emails). So be on the lookout for that post on Twitter/X, and feel free to comment with any cuts of the data you’d like to see.

keep scrolling. more data below

🔒 Today’s Top Trades

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🔒 Other Trade Notes

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🔒 Data Dump

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