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As part of most compensation plans at big companies, insiders receive company stock. This means there is almost always going to be some insider selling. They may sell for many reasons, but the fact is that they buy stock for a single reason… they believe the stock is going to move higher.

Over the years I have learned that insider selling is often just noise and is often absorbed back by the company through buyback plans. This is not true of insider buying. Sometimes there is a planned purchase or series of purchases and sometimes it is a big statement buy. Knowing which is which takes a trained eye.

In this video we look at three stocks that have seen some insider buying over the last several months.

Royal Caribbean Cruises (RCL - Free Report) is a Zacks Rank #2 (Buy) that has an A for Value and an A for Growth is highlighted first. This stock was left for dead at the start of the pandemic, but it has sailed on to better waters since then.

Next up is Crox (CROX - Free Report) which also is a Zacks Rank #2 (Buy) and also has an A for Value and an A for Growth. This stock soared after we found out that the pandemic would not kill us all and we could wear our Crox at home without anyone judging us. Since then the stock is more or less telling us that people have been replacing their Crox shoes and maybe even accessorizing them.

Brian reviews the earnings history, estimate revisions and takes a look at the chart of both of these stocks.

Finally, we look at Aon (AON - Free Report) which is a Zacks Rank #3 (Hold) and a stock that Brian would normally never really look at. Insurance just isn’t exciting, but when Brian saw the pop in the stock after a recent miss and post-earning drift higher, he just had to highlight this stock. Brian only takes a look at the Zacks Price, Consensus and EPS surprise chart for Aon (AON - Free Report) and notes that they regularly miss earnings so the recent miss should not be a big shock.

Insider Trader is a service run by Tracey Ryniec and she does a great job separating the wheat from chaff in the world of insider buying. She can spot an insider statement buy from miles away and knows when it is a clear-cut sign that outperformance lies ahead. One tip from her service is to watch for the insider buying from Chief Legal Officers, as they are not the type, generally speaking of course, who would gamble with their own money.

Take a moment and check out the Zacks Insider Trader service today!




In-Depth Zacks Research for the Tickers Above


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Royal Caribbean Cruises Ltd. (RCL) - free report >>

Aon plc (AON) - free report >>

Crocs, Inc. (CROX) - free report >>


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