They say there are many reasons to sell a stock but only one reason to buy it: you think the price is going to rise. When executives buy the stock of a company they manage, it is viewed as a positive sign. Company insiders think that the share price is going to increase, but they also have insights as to why it is likely to climb higher. This is why considerable attention is paid to insider stock buying. When CEOs, other senior executives or board members buy up large chunks of company stock it is because they feel the share price is undervalued, the market has got it wrong or they know there is a positive catalyst looming on the horizon. In essence, the market views insider stock buying as the ultimate vote of confidence. Conversely, news that company insiders are selling stocks is viewed as a very pessimistic sign. Here is Insider Insights: three stocks getting a vote of confidence.
Intel (INTC)
Intel (NASDAQ:INTC) CEO Pat Gelsinger is a believer. The head of the chipmaker continues to buy company stock on the open market despite a 9% decline in INTC stock so far in 2024. The drop is mostly due to weak guidance for the year ahead that Intel issued in January along with strong fourth quarter 2023 financial results that exceeded Wall Street estimates. Gelsinger has taken advantage of the drop in the company’s share price to buy more INTC stock in recent weeks.
On Feb. 1, Gelsinger paid $119,700 for 2,800 Intel shares at an average price of $42.74 each. This followed $130,100 that he spent buying INTC stock on Jan. 29 of this year, according to filings made public by the U.S. Securities and Exchange Commission (SEC). Gelsinger now owns 66,386 Intel shares in a personal account and another 456,915 shares through various trusts that he controls. In total, Gelsinger has a stake in Intel stock that’s worth nearly $23 million based on the current share price.
Charter Communications (CHTR)
Chris Winfrey is another CEO who is literally putting his money where his mouth is. The head of Charter Communications (NASDAQ:CHTR) has bought company stock as it has declined to start the year. News of an unexpected drop in internet subscribers has CHTR stock down 28% through two months of the year. Winfrey has pounced on the decline and bought his first block of shares in the company he leads in more than two years.
Specifically, Winfrey bought 5,050 Charter shares on Feb. 6 at a total cost of $1.5 million. He paid an average price of $295.29 per share, according to SEC filings. Winfrey now owns 57,700 shares of CHTR stock in a personal account and 148,000 shares through trusts that he controls. The CEO’s stake in Charter Communications is currently worth $58.2 million. Winfrey last bought CHTR stock in early 2022, paying $1.6 million for 2,750 shares at an average price of $591.96 each.
WisdomTree (WT)
Asset manager WisdomTree (NYSE:WT) has seen its stock rise over the past year. Through 12-months, WT stock has gained 36%, including a 19% increase in 2024 alone. The company, managing a series of exchange-traded funds, has been enjoying a comeback as the stock market has recovered from the 2022 bear market. CEO Jonathan Steinberg increased his stock holdings as the share price rose, following WisdomTree’s strong fourth quarter and as its assets under management topped $100 billion for the first time.
On Feb. 13, Steinberg paid $2.2 million for 303,781 WisdomTree shares at an average price of $7.20 per share. The CEO now holds 9.2 million shares of WT stock. The recent purchase was the first time that Steinberg bought WisdomTree stock since February 2020, when he paid $754,000 for 177,099 shares at an average price of $4.26 per share. WT stock’s upswing, trading at $8 per share and 14 times future earnings estimates, suggests it still looks relatively cheap.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
