There are thousands of publicly traded companies out there, and they all send out a range of signals that investors must learn to interpret. Parsing these signals is essential for investing success, and having a clear strategy, based on reliable market indicators, often makes the difference between gaining or losing in the market.
One of the clearest signals that retail investors can follow is the buying patterns of corporate insiders. These are the company officers who hold high positions – CEOs, CFOs, COOs, Board members – giving them both access to their companies’ inner workings and responsibility to Boards and shareholders for bringing in profits. The result: insiders don’t buy their own stock lightly, and when they do, investors should take note.
To get our own feel for this strategy, we’ve used the TipRanks Insiders’ Hot Stocks tool to pull up details on two equities whose insiders have been buying recently. There are other positive signifiers to follow; these stocks are rated as Strong Buys by the analyst consensus and are projected to pick up steam in the months ahead. Let’s take a closer look.
Petco Health and Wellness (WOOF)
We’ll start with a look at a company that is both old and new in the public markets. Petco, the well-known pet supply chain and brand, sells everything from pet food and basic care supplies to pet owners’ insurance to grooming, and stores even carry a selection of small live animals. The company went public last January for the third time in its history. Last year’s IPO saw the company put 48 million shares on the market, at $18 each, and raise more than $864 million in gross proceeds.
Petco won’t report its Q4 or full-year 2021 numbers until March, but we can get a feel for the company with a look at the Q3 numbers released in November. The company reported $1.44 billion at the top line, relatively flat sequentially but up 15% year-over-year and nearly 5% above estimates. Net income came in at 20 cents per share, and the company raised its 2021 full year guidance.
Story continues
Nevertheless, the stock fell…
..
