InsiderEdge™️ Highlights: March & April 2024’s Top Insider Trades
Throughout March and April, InsiderEdge™️ by BBAE, our premier analytics tool for corporate insider trading, meticulously sifted through the months’ SEC reporting data to present you with the highlights of corporate insider trading activity. As you may know, these are published daily within the BBAE app. With its AI-driven capabilities, InsiderEdge™️ deciphers the complex signals from the corporate insider trading world, translating SEC filings into a curated list of top investing signals. These insights can provide a glimpse into the confidence levels of those who know their companies intimately—corporate insiders.
March and April have been outstanding months for InsiderEdge. Now, let’s delve into the highlights.
Carvana Co. ($CVNA)
- Trade Spotlight: On March 1st, a Director purchased 1,300 shares at $77/share, investing a total of $100,000. This was their largest purchase out of 2.
- Stock Price Activity: As of the close on May 2, the stock price stood at $116.50, a 51.0% increase from the purchase price of $77.
- Implications of the Trade: CVNA insiders have a strong track record, with 100% 1-month and 3-month win rates, though 1-year returns are negative. The Director’s purchase suggests confidence in the company’s near-term prospects. Nice trade by the Director!
Paysign, Inc. ($PAYS)
- Trade Spotlight: On March 18th, a 10% Owner bought 112,725 shares at $2.96/share, investing a total of $333,000. This was their 5th largest purchase out of 14 and increased their position by 1.9%. Two other insiders also bought shares in March.
- Stock Price Activity: As of market close on May 2, the share price had appreciated to $4.61, marking a 55.7% increase from the purchase price of $2.96.
- Implications of the Trade: PAYS insiders have very high 3-month, 6-month and 1-year win rates and returns. The cluster of insider buying in March suggests a strong positive outlook shared by multiple insiders. Nice trades by the insiders!
ALX Oncology Holdings Inc. ($ALXO)
- Trade Spotlight: On March 18th, the CEO acquired 4,400 shares at $11.31/share, investing $49,800. While a relatively small purchase for them, it increased their holdings by 2.6%.
- Stock Price Activity: As of May 2, the stock closed at $16.62, a 47.0% increase from the purchase price of $11.31.
- Implications of the Trade: Despite the short-term dip, ALXO insiders have 100% win rates and strong returns across all time periods. The CEO’s purchase, even if modest in size, signals their continued confidence in the company. Winner!
NextNav Inc. ($NN)
- Trade Spotlight: On March 21st, a 10% Owner purchased 483,000 shares at $4.52, investing $2.18 million. This was a 4.1% increase in their stake and their largest buy to date. One other insider also bought shares.
- Stock Price Activity: By May 2, the stock appreciated to $8.99, a 98.9% increase from the purchase price of $4.52.
- Implications of the Trade: NN insiders have perfect 100% win rates and massive 3-month to 1-year returns. The 10% Owner’s record-setting purchase, alongside another insider buy, is a tremendously bullish signal. Nice trades by the insiders!
Zura Bio Ltd ($ZURA)
- Trade Spotlight: On April 25th, a Director acquired 159,744 shares at $3.13 in a private placement, investing $500,000. This increased their holdings by 26%. Three other insiders participated as well.
- Stock Price Activity: By May 2nd, the stock reached $4.36, a 39.3% increase from the purchase price of $3.13.
- Implications of the Trade: ZURA insiders have very strong returns across the board, with 80-100% win rates and triple-digit 1-year returns. The private placement participation by multiple insiders is a strong vote of confidence in the company’s prospects. Nice trades by the insiders!
Deciphering The Signals
Looking at insider trades can give investors potential insights into a company’s future. An insider buying stock suggests they believe the stock will rise, indicating potential growth or undervaluation. Conversely, insiders selling shares could signal various things: they might need to liquidate assets for personal reasons, or it could hint at perceived overvaluation or upcoming challenges for the company.
However, it’s crucial to understand that insider trading is just one piece of the puzzle. While insider trades can provide valuable context, they are not infallible predictors of stock performance. Investors should always look at the bigger picture, including market conditions, company performance, industry health, and economic indicators, before making investment decisions.
InsiderEdge™️ serves as a valuable tool for investors who wish to incorporate insider trading data into their analysis. By spotlighting significant insider trades, it enables investors to potentially align their strategies with those who have the deepest insights into their companies — the corporate insiders.
Disclaimer: The content provided by InsiderEdge™ is for informational purposes only and does not constitute investment advice, an offer to sell, or a solicitation of an offer to buy any securities. The historical performance noted in this post is not is not indicative of future results. Investing involves risk, including the potential loss of principal. Use the platform at your own risk and consult a financial advisor before making any investment decisions. In partnership with Yellowbrick Investing Inc.
