On May 23 former Vice Chairman of the Federal Reserve, Roger Ferguson, appeared in an interview on CNBC where he shared his insights on the economic data, his economic outlook, and factors that could influence the Federal Reserve's decision-making process. Ferguson acknowledged the significance of inflation numbers and said that persistent inflation in the service sector is one of the main factors contributing to labor market tightness. He emphasized that these indicators are crucial for assessing the overall economic situation. With inflation remaining a concern, particularly in the service sector, Ferguson thinks that determining whether a rate hike in June is appropriate is a challenging task. Despite previous rate movements, the outcome remains uncertain.
Ferguson believes that the Fed should lean towards a "wait and see" approach. He acknowledged the Fed's historical pace of rate adjustments and expressed concerns about the prevailing economic uncertainty, especially in the banking sector. Ferguson thinks that if the Fed decides to proceed with one more rate hike, it would be prudent to pause afterward and assess the current state of the economy.
Roger Ferguson thinks that credit tightening could have a significant impact on the Fed's decision-making process. However, he emphasized that credit tightening has not yet become a significant factor influencing monetary policy. While there have been some signs of credit tightening and concerns in certain locations, it has not become a "national phenomenon yet".
Ferguson further expressed his belief that the market may be "misreading the Fed's intention". He pointed out that the market is not giving enough consideration to the persistent nature of inflation. Additionally, he stated that while the Fed anticipates the possibility of a "modest recession", it does not necessarily imply an immediate pivot to rate cuts. According to Roger Ferguson, the Fed aims to allow "disinflationary forces" to permeate the economy fully.
Ferguson anticipates a recession less severe than the one experienced in 2008, with "unemployment peaking somewhere in the mid-fives". Additionally, he expects the economy to rebound relatively quickly due to forward momentum and strong labor market fundamentals. With steady demand and a significant number of job openings, Ferguson believes that even with a slight increase in unemployment, the economy could weather a recession.
While the Federal Reserve's decision-making process and its impact on the overall economy remain uncertain, insider activity in the stock market can provide valuable clues about market sentiment and the confidence of those with intimate knowledge of a company's operations. By examining significant buy-side insider activity, investors can gain a deeper understanding of the outlook and potential prospects of specific companies. Some notable stocks that have been experiencing high levels of buy-side insider activity include Paramount Global (NASDAQ:PARA), DISH Network Corporation (NASDAQ:DISH), and Energy Transfer L.P. (NYSE:ET).
Insider Buying Alert: These 10 Stocks are Seeing Significant Insider Activity
We used Insider Monkey’s insider trading screener to screen for stocks that have been heavily purchased by corporate insiders over the past few weeks. We sorted our screen by transaction amount and narrowed down our selection to stocks that have been seeing significant buy-side insider activity. Additionally, we have included the hedge fund sentiment along with each of our picks. We have ranked these stocks in ascending order of the number of hedge funds that have stakes in them.
Insider Buying Alert: These 10 Stocks are Seeing Significant Insider Activity
Prelude Therapeutics Incorporated (NASDAQ:PRLD) is a clinical-stage biopharmaceutical company involved in the research and development of novel precision cancer therapies. As of May 26, the stock has gained 10.16% year-to-date.
This March, H.C. Wainwright analyst Robert Burns raised his price target on Prelude Therapeutics Incorporated (NASDAQ:PRLD) to $17 from $15 and maintained a Buy rating on the shares.
Insiders are racking up shares of Prelude Therapeutics Incorporated (NASDAQ:PRLD). On May 22, the company disclosed in a regulatory filing that its director, David P Bonita, purchased 869,565 company shares for a total transaction amount of $4.99 million. On May 23 the company's CFO, Laurent Chardonnet, acquired 5000 shares at $5.50 per share for a transaction of $27,500. On May 24 the company's chief legal officer, Bryant Lim, bought 2,400 company shares for a total transaction of roughly $13,000. Between May 23 and May 25 the company's CEO, Kris Vaddi, acquired 13,756 shares of the company for a total transaction amount of over $75,000.
At the end of Q1 2023, 8 hedge funds were long Prelude Therapeutics Incorporated (NASDAQ:PRLD) and held stakes worth $116.4 million in the company. Of those, Baker Bros. Advisors was the leading investor in the company and disclosed a position worth $57.7 million.
EVgo, Inc. (NASDAQ:EVGO) is one of the largest operators of DC fast charging stations in the United States. EVgo, Inc. (NASDAQ:EVGO) was spotted on 13 investors' portfolios at the end of Q1 2023. These funds disclosed collective stakes worth $25.9 million in the company, up from $15.2 million in the preceding quarter with 17 positions.
EVgo, Inc. (NASDAQ:EVGO) is one of the stocks that is seeing significant buy-side insider activity. On May 22 the company disclosed that its chairman, David Nanus, purchased over 5.88 million company shares at $4.25 per share for a total transaction amount of $24.99 million.
This May, Stifel took coverage of EVgo, Inc. (NASDAQ:EVGO) with a Buy rating and a $9 price target.
As of March 31, LMR Partners is the most prominent shareholder in EVgo, Inc. (NASDAQ:EVGO) and has a stake worth $17.9 million.
In addition to EVgo, Inc. (NASDAQ:EVGO), other stocks that insiders are piling into right now include Paramount Global (NASDAQ:PARA), DISH Network Corporation (NASDAQ:DISH), and Energy Transfer L.P. (NYSE:ET).
Luminar Technologies, Inc. (NASDAQ:LAZR) is seeing significant buy-side insider activity. On May 15 the company's director, Jun Hong Heng, acquired 33,750 shares at $5.91 per share. The transaction was valued at $0.19 million. The same day, the company’s CEO Austin Russell purchased over 2.6 million shares of Luminar Technologies, Inc. (NASDAQ:LAZR) for $15.9 million. Russell purchased an additional 0.9 million company shares on May 16 for a total transaction amount of over $5.7 million.
On May 16, Citi analyst Itay Michaeli updated his price target on Luminar Technologies, Inc. (NASDAQ:LAZR) to $18 from $19 and maintained a Buy rating on the shares.
At the close of the first quarter of 2023, 14 hedge funds were eager on Luminar Technologies, Inc. (NASDAQ:LAZR) and held collective positions worth $147.8 million in the company. This is compared to 17 hedge funds in the previous quarter with stakes worth $59 million.
Some of the most notable stocks that are on experiencing a surge in insider activity include Paramount Global (NASDAQ:PARA), DISH Network Corporation (NASDAQ:DISH), and Energy Transfer L.P. (NYSE:ET).
Akero Therapeutics, Inc. (NASDAQ:AKRO) is a clinical-stage biotechnology company that is involved in the development of therapies for patients with serious metabolic diseases. As of May 26, the stock has gained 406.11% over the past 12 months.
On May 17, Canaccord analyst Edward Nash raised his price target on Akero Therapeutics, Inc. (NASDAQ:AKRO) to $59 from $58 and reiterated a Buy rating on the shares.
On May 19 Akero Therapeutics, Inc. (NASDAQ:AKRO) disclosed that its director, Graham Walmsley, purchased 120,000 company shares at $42 per share. The transaction was valued at $5.04 million. Akero Therapeutics, Inc. (NASDAQ:AKRO) is placed seventh on our list of the top stocks that are seeing significant insider activity right now.
Akero Therapeutics, Inc. (NASDAQ:AKRO) was held by 31 hedge funds at the close of Q1 2023. These funds disclosed positions worth $782.2 million in the company. As of March 31, Alkeon Capital Management is the top shareholder in the company and has a position worth $123.2 million.
This April, Morgan Stanley raised its price target on Royalty Pharma Plc (NASDAQ:RPRX) to $50 from $48 and maintained an Overweight rating on the shares.
Royalty Pharma Plc (NASDAQ:RPRX) is one of the top stocks experiencing high levels of buy-side insider activity. Between May 16 and May 24 the company's founder and CEO, Pablo G Legorreta, has acquired 380,000 company shares for a total transaction amount of over $12.5 million.
At the end of the first quarter of 2023, 31 hedge funds were bullish on Royalty Pharma Plc (NASDAQ:RPRX) and held positions worth $1.1 billion in the company. Of those, Viking Global is the leading shareholder in the company and has a stake worth $403.6 million.
