One of the best ways to spot potential opportunities is by looking for which insider stocks to buy.
In fact, for insider stocks to buy, who knows the company better than a CEO, CFO, COO, officer, employee, or director? If they’re buying a sizable number of shares, it’s often a good idea to start looking into why.
After all, these are the people who are privy to information on new products, competition and the operating environment of the firm.
We have to consider that insiders who are buying their stock wouldn’t put up their own money unless they believed it would be profitable.
So, here are seven insider stocks to buy.
Agree Realty (ADC)
Not only does it currently yield 5.3%, but some of its top clients are its high-grade tenants. With so many people in the know putting their money where their mouths are, this is one of the no-brainer insider stocks to buy.
Board member John Rakolta paid $1.89 million for 30,000 shares. CEO Joey Agree spent $627,900 on 10,000 shares, and executive chairman and company founder Richard Agree bought about 11,751 shares for $739,725.
Or, take a look at Safehold (NYSE:SAFE). The REIT focuses on ground leases, where tenants own a property, but not the land it’s built on.
In this situation, the tenant pays rent on the land and owns the building on that land. The tenant is also responsible for property taxes, insurance, and other maintenance expenses on that building.
Then, once the lease expires (sometimes after decades) the building on that land becomes the property of the REIT.
SAFE also yields about 3.9%, and trades at a 52-week low, with insider buying to boot. Most recently, CEO Jay Sugarman recently bought 65,420 shares of the down, but not out REIT for about $1.4 million.
Goldman Sachs just initiated coverage of SAFE with a buy rating thanks to SAFE’s attractive valuation.
Energy Transfer (ET)
With a yield of 8.84%, Energy Transfer (NYSE:ET) transports, and processes natural gas, natural gas liquids, and crude oil, and has seen significant insider buying.
Since August, CEO Kelsey Warren bought three million shares of ET for $38.8 million. Executive Vice President Bradford Whitehurst bought 10,000 shares for $130,000. Even co-CEO Marshall McCrea bought a total of 100,000 shares for just over $1.3 million.
Better, the stock should continue to produce consistent profits for investors. Not only does the company have about 125,000 miles of pipelines and infrastructure in the U.S., the company transports about 30% of our oil and natural gas supply.
It’s also acquiring Crestwood Equity Partners, a master limited partnership (MLP) with assets in the Williston Basin, Powder River Basin, and the Delaware Basin. All of which should help fuel even more upside for Energy Transfer in the long run.
The latest pullback in Broadcom (NASDAQ:AVGO) – an $832 stock – is a buying opportunity. For one, AVGO is technically stretched on RSI, MACD, and Williams’ %R. From its current price, I’d like to see it retest $920 again shortly.
Fueling interest in the stock, Director Harry You recently paid $860,000 for 1,000 AVGO shares.
Before that, Director Check Kian Low picked up 11,000 shares for just over $9.6 million.
The company’s AI-related revenue is expected to jump by more than $7 billion in the next fiscal year from $3.8 billion this year, as noted by Barron’s.
Deutsche Bank just raised its price target to $950 from $905, with a buy rating. Analysts at KeyBanc also raised their price target on AVGO to $1,000 from $940.
Super Micro Computer (SMCI)
After running from about $98 to $269 this year, Super Micro Computer (NASDAQ:SMCI) is still attractive, especially on its recent post-earnings pullback. The company beat expectations, but conservative guidance numbers fueled by supply constraints overshadowed those.
Believing the pullback is overdone, board member Shiu Leung (Fred) Chan picked up 4,000 shares of the stock for about $1.06 million. Analysts at Barclays also initiated coverage of SMCI with an overweight rating, with a $327 price target.
The firm also said, “Against the backdrop of AI investment trends, we believe SMCI is well positioned to capture the rising AI server opportunity with more share gains ahead driven by its superior design capability and strong AI partnerships,” as quoted by Seeking Alpha.
Planet Labs (PL)
Planet Labs (NYSE:PL) may not be profitable just yet, but that hasn’t stopped co-Founder and CEO, Marshall Spencer from buying 100,000 shares just weeks ago.
Prior to that buy, a division president bought 274,000 shares for just over $997,113 back in April.
Analysts see revenues jumping about 15% to $221 million this year. Plus, at the end of July, it had about $350 million in cash, which will allow it to scale operations.
We also have to consider that space activity between the earth and the moon could be worth $10 trillion by 2050, according to Barron’s, as I also noted here. So, there is potential.
Another down but not out stock with solid insider buying is 1-800-FLOWERS.com (NASDAQ:FLWS).
Company President Thomas Hartnett recently bought 25,000 shares for just over $152,000. He was joined by company CFO William Shea who picked up 30,000 shares for just over $190,000.
According to Seeking Alpha, “For fiscal 2024, FLWS expects revenue to remain pressured by a challenging consumer environment early in the year, and then rebound during the holiday period and into the second half of the fiscal year. Gross margins are also set to improve.”
While it may take some time for FLWS to recover, I’m encouraged by the insider activity.
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.