There are a million reasons to sell a stock, but only one to buy: you believe the stock will rise.
Company insiders are no different, and that’s why some investors swear by tracking those purchases for insight into companies poised to outperform.
It’s even more encouraging when the CEO is the one doing the buying. With that in mind, let’s look at five stocks with CEO insider buying.
B Riley Financial (RILY)
With its $1.4 billion market cap, it might not get much attention, but B Riley Financial (US:RILY) has had some notable insider buying.
Chairman and Chief Executive Officer Bryant R Riley owns about 10% of the company following recent purchases.
On Aug 30, Riley acquired 25,000 shares for $49.17 apiece, then bought another 25,000 shares for $49.76 a day later. Both transactions were good for more than $1.22 million apiece.
The recent purchases pushed Riley’s position to 5.944 million shares. At current prices, that’s about a $300 million stake, yielding just above 8% annually.
American Assets Trust (AAT)
Like B Riley American Assets Trust (US:AAT) flies under the radar with its $1.67 billion market cap. However, it, too, had some recent insider buying from its Chairman and co-CEO Ernest Rady.
On Aug. 29, Aug 30 and Sept. 2, Rady purchased 20,000, 10,000 and 25,000 shares, respectively.
The last purchase lifted his stake to 6,852,855 shares, sporting a 4.65% dividend. With a price-to-book ratio of just 1.35, perhaps Rady sees value in AAT shares on the dip.
Commscope Holding Company (COMM)
American network infrastructure provider CommScope’s (US:COMM) stock’s struggled for some time, trading down 63% over the last five years, and it trades 20% below its 2013 Nasdaq listing debut.
However, President and CEO Charles Treadway plunked down roughly $500,000 when he purchased 48,076 shares.
It was a modest increase to his position size, which now stands at 1.26 million shares worth roughly $12 million.
Treace Medical Concepts (TMCI)
Treace (US:TMCI) is the smallest company on the list, with a $1.1 billion market capitalization.
CEO and Director John Treace recently made two noteworthy purchases; 21,491 shares for $20.95 apiece on Aug. 26 and 10,000 shares for $19.80 each on Sept 1.
The two purchases combined for a total value of almost $650,000, and Treace, who owns more than a 10% stake in the firm, now owns 5,516,455 shares after his second purchase in six days.
Rocket Companies (RKT)
Last, Rocket (US:RKT) CEO Jay Farner scooped up 52,200 shares across two trades, one on Sept. 1 and another the next day, for just under $200,000.
Previously Farner bought 24,000 shares on Aug. 29, 24,700 on Aug 30 and 25,200 on Aug 31.
Farner committed just under $1 million between all five transactions as part of his 10b5-1 automatic trading plan.
This article originally appeared on Fintel
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