In this article, we will take a look at the 10 large-cap stocks with insider buying. If you want to explore similar stocks, you can also take a look at 5 Large-Cap Stocks with Insider Buying.
"There Are Indications That We'll Have A Better Second Half"
On May 12 Katie Stockton, founder and managing partner of Fairlead Strategies, appeared in an interview on CNBC to discuss current market trends and her outlook for the back half of 2023. Stockton thinks there is a sense of uncertainty prevailing in the market, evident through a "consolidation phase" across various asset classes, including stocks and bonds.
Stockton noted that investors lack "strong conviction" regarding the direction of the market and that indicators continue to point lower, with the S&P 500 failing to confirm a breakout above the 4,155 level. This is indicative of a "near-term setback". Additionally, Stockton thinks that going below 4,000 on the S&P 500 could cause market sentiment to become more bearish, potentially leading to further downside.
However, Stockton thinks "there are indications that we'll have a better second half", with improved "long-term momentum buy signals" expected. Here are some comments from Katie Stockton:
"Some challenges here, nothing major, we would be interested in reevaluating and looking for buying opportunities into the next downdraft... There are a lot of stocks out there that are oversold, and to the extent that they're oversold and not breaking down, there may be some opportunity there."
Investing in the stock market involves a blend of careful analysis, risk assessment, and strategic decision-making, especially in the current market environment when there is elevated downside risk. One approach that has gained prominence over the years is mimicking insider trades and tracking where big money managers are placing their bets. Insider trading can be a powerful indicator that can provide valuable insights into a company's future prospects and can serve as a lucrative investment strategy for investors with a relatively longer-term time horizon. Corporate insiders have access to valuable information about their companies, and when they decide to buy shares on the open market, it can signal a strong vote of confidence in the future of the business. In the first quarter of 2023, there were several large-cap companies that saw significant insider buying including Energy Transfer L.P. (NYSE:ET), General Dynamics Corporation (NYSE:GD), and U.S. Bancorp (NYSE:USB). Let's now discuss these stocks, among others, in detail below.
10 Large-Cap Stocks with Insider Buying
Photo by Ruben Sukatendel on Unsplash
Our Methodology
We used Insider Monkey's insider trading screener to screen for stocks that have been purchased by corporate insiders between May 1 and May 19. We sorted our screen by transaction amount. We narrowed down our selection to large-cap stocks that have been experiencing high levels of insider purchases. These stocks are ranked in ascending order of their market cap, as of May 19.
On May 16 Paramount Global (NASDAQ:PARA) disclosed that its director, Shari Redstone, purchased 165,000 shares of the company at an average share price of $15.06 per share. The transaction was valued at $2.48 million. As of May 19, Paramount Global (NASDAQ:PARA) is worth $10.23 billion on the open market and is one of the large-cap stocks that insiders are piling into.
On May 5, Evercore ISI analyst Vijay Jayant updated his price target on Paramount Global (NASDAQ:PARA) to $18 from $25 and maintained an In Line rating on the shares.
As of March 31, Berkshire Hathaway is the largest investor in Paramount Global (NASDAQ:PARA) and has disclosed a position worth $2.09 billion in the company.
Other stocks that are experiencing high levels of insider activity right now include Energy Transfer L.P. (NYSE:ET), General Dynamics Corporation (NYSE:GD), and Occidental U.S. Bancorp (NYSE:USB).
Toast, Inc. (NYSE:TOST) is an American provider of cloud-based restaurant management software. As of May 19, the stock has gained 18.01% year-to-date and is valued at $10.98 billion on the open market.
Toast, Inc. (NYSE:TOST) is experiencing high levels of insider activity. The company's director, David Yuan, purchased $12.5 million worth of the company's shares between May 12 and May 15. Toast, Inc. (NYSE:TOST) is ranked ninth on our list of large-cap stocks with insider buying.
This May, Mizuho analyst Dan Dolev raised his price target on Toast, Inc. (NYSE:TOST) to $25 from $23 and maintained a Buy rating on the shares.
As of March 31, HMI Capital is the dominant shareholder in Toast, Inc. (NYSE:TOST) and holds a stake worth $279.3 million in the company.
Coinbase Global, Inc. (NASDAQ:COIN) is one of the top large-cap stocks that insiders are buying right now. Between May 1 and May 19 the company's director, Fred Ehrsam, has bought $50 million worth of shares of Coinbase Global, Inc. (NASDAQ:COIN). As of May 19, the stock has a market cap of $13.77 billion and has returned 71.73% to investors on a year-to-date basis.
On May 4, Coinbase Global, Inc. (NASDAQ:COIN) announced earnings for the first quarter of fiscal 2023. The company reported earnings per share of $0.45 and outperformed EPS estimates by $1.32. The company's revenue for the quarter amounted to $772.53 million and beat market consensus by $118.57 million.
On May 8, Daiwa analyst Steven Nie upgraded Coinbase Global, Inc. (NASDAQ:COIN) to Buy from Hold and raised his price target on the stock to $65 from $58.
As of March 31, ARK Investment Management is the top shareholder in Coinbase Global, Inc. (NASDAQ:COIN) and has disclosed a stake worth $795.7 million in the company.
Axon Enterprise, Inc. (NASDAQ:AXON) is a leading manufacturer of weapons products for military, law enforcement, and civilians. The company has two segments: Software & Sensors, and TASER. This May, Baird analyst William Power raised his price target on Axon Enterprise, Inc. (NASDAQ:AXON) to $240 from $237 and reiterated an Outperform rating on the shares.
On May 9, Axon Enterprise, Inc. (NASDAQ:AXON) announced strong earnings for the first quarter of fiscal 2023. The company reported earnings per share of $0.88 and outperformed EPS expectations by $0.34. The company's revenue for the quarter amounted to $343.04 million, up 33.78% year over year and ahead of Wall Street consensus by $23.30 million.
On May 17 Axon Enterprise, Inc. (NASDAQ:AXON) disclosed that its CFO and CBO, Brittany Bagley, and director, Hadi Partovi, purchased $2.5 million worth of the company's shares. Brittany Bagley purchased 250 shares at an average price of $200 per share for a total transaction amount of $50,000. Hadi Partovi purchased 10,000 shares of the company for a total transaction amount of roughly $2 million.
As of May 19, Axon Enterprise, Inc. (NASDAQ:AXON) has gone up by 18.38% year-to-date and is valued at $14.95 billion on the open market. The stock is ranked seventh among the top large-cap stocks with insider buying.
As of March 31, Broadwood Capital is the leading investor in Axon Enterprise, Inc. (NASDAQ:AXON) and holds a position worth $170.8 million in the company.
Baron Funds made the following comment about Axon Enterprise, Inc. (NASDAQ:AXON) in its Q1 2023 investor letter:
“Shares of Axon Enterprise, Inc. (NASDAQ:AXON), a public safety-focused technology company, rose during the quarter following a robust earnings report and a favorable long-term outlook which raised revenue guidance, beating investor expectations. Notable growth in Axon’s higher-margin cloud software business and Sensors segment reflects strong demand for the company’s digital evidence management, productivity, and real-time operations platforms, as well as Axon Fleet in-car cameras. The company is also targeting reducing costs and share dilution, as well as enhancing free-cash-flow conversion in the coming years. All of this offers dramatic upside potential. With line of sight to more than 20% sustained revenue growth, an improving margin profile with the growth of software solutions, and a management team that has demonstrated an ability to innovate quickly, sell to customers, and manage costs effectively, Axon has solidified itself as a best-in-class company and a compelling investment in the public safety space.
On April 10, Morgan Stanley raised its price target on Royalty Pharma Plc (NASDAQ:RPRX) to $50 from $48 and maintained an Overweight rating on the shares.
On May 16 Royalty Pharma Plc (NASDAQ:RPRX) announced that its founder and CEO, Pablo G Legorreta, purchased 160,388 shares of the company at an average share price of $33.57 for a total transaction amount of $5.38 million. On May 17, Pablo G Legorreta purchased an additional 69,612 shares of the company at an average share price of $32.94 for a total transaction amount of $2.29 million.
As of May 19, Royalty Pharma Plc (NASDAQ:RPRX) is worth $15.24 billion on the open market and is one of the top large-cap stocks that insiders are buying right now.
As of March 31, Viking Global is the largest shareholder in Royalty Pharma Plc (NASDAQ:RPRX) and has a stake worth $403.6 million.
In addition to Royalty Pharma Plc (NASDAQ:RPRX), other notable large-cap stocks that insiders are piling into right now include Energy Transfer L.P. (NYSE:ET), General Dynamics Corporation (NYSE:GD), and U.S. Bancorp (NYSE:USB).
