3 Unusual Insider Transactions you Should Know About

Insider Transactions Analysis Can Help with Conviction

Insider transactions, particularly insider buys, are a valuable tool for investors to monitor because they can provide insight into how the company’s management team feels about the company’s future. Additionally, insider buy transactions may provide peace of mind for investors, signaling that management has skin in the game and is willing to bet on themselves.

For instance, in a March 25th article, I pointed out that two IonQ (IONQ) insiders made unusually large purchases of IONQ stock. The insider buys were particularly attention-grabbing for a few reasons, including the larger-than-normal size of the transactions and the fact that more than one insider was buying shares. Since then, shares have risen nearly 60% and have doubled in value at one point. Zacks Investment Research

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Insider Trades: What to look for

Investors need to understand that when it comes to analyzing insider transactions, not all are equal. Insider buys typically hold more weight for investors because insiders only buy stock for one reason – they believe the share price will increase. Conversely, insider sales are less meaningful because insiders may have pre-planned sales or may be selling stock for personal reasons (though there are, of course, exceptions to the rule). The two most important factors to look for are time and size. If an insider buys stock for the first time in years and buys a lot, it’s usually a good omen for the stock.

3 Recent Insider Transactions to Watch

HIMS CEO Makes Largest Insider Sale in Company History

Recent filings show that Hims and Hers (HIMS) CEO Andrew Dudum sold more than $30 million worth of HIMS stock. Unfortunately, the insider sale is not a one-off instance. Insiders have sold a combined $199 million worth of shares during the past year!Zacks Investment Research

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In addition to the troubling insider sells, HIMS has been a choppy, news-driven, and difficult stock to trade.

LLY Insiders Buy the Dip

Pharma giant Eli Lilly (LLY) shares suffered a 14% drop on August 7th after a worse-than-anticipated earnings report. However, a slew of LLY insiders see the dip as an opportunity to scoop up cheap shares. Since the EPS report, five insiders, including CEO David A. Ricks, bought nearly $3 million worth of stock. The large multiple buys may mean that the stock is nearing a bottom.Zacks Investment Research

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TMDX CEO Bets Big

The latest insider transaction filings show that TransMedics Group (TMDX) CEO & President Waleed Hassanein bought nearly $2 million worth of his company’s stock. The transaction marks the first insider buy of the medical products company since 2023.

Story Continues

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Bottom Line

While no single indicator can guarantee a stock’s performance, the pattern of insider transactions can offer a powerful glimpse into a company’s prospects.

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Eli Lilly and Company (LLY) : Free Stock Analysis Report

TransMedics Group, Inc. (TMDX) : Free Stock Analysis Report

Hims & Hers Health, Inc. (HIMS) : Free Stock Analysis Report

IonQ, Inc. (IONQ) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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