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Top insiders are spending over $1M on these 3 hot stocks

Using TipRanks’ popular Daily Insider Transactions tool, we found which stocks best-performing corporate insiders like right now. The tool scans through the activity of almost 40,000 insiders to reveal the insiders with the best success rate and average return. These are the top insiders who consistently outperform the market.

We differentiate between informative and uninformative insider transactions in order to find the most compelling opportunities. Uninformative transactions indicate that an insider is buying/selling shares for reasons that do not necessarily indicate confidence in the company, such as exercising share options. In contrast, informative transactions are deliberately made by insiders, often because they feel the stock is undervalued.

Here we looked at stocks that exhibit strong buy indicators based on informative transactions of top insiders who are company executives, board members or 10 percent shareholders of publicly traded companies. We looked for transactions worth over $1 million, as the more serious the investment the more likely it is to be representative of a bullish insider sentiment.

So now let’s check out the three stocks that are seeing big insider buying from top-ranked insiders right now:

Las Vegas Sands (NYSE:LVS)

Nevada-based LVS is the biggest casino owner in the US. Among its US casinos in the United States are two resorts on the Las Vegas Strip: The Venetian (complete with canals and gondolas) and The Palazzo. However, the company also owns a multitude of other properties both in the US and internationally including restaurants, clubs, and an arts and science museum in Singapore.

The Chairman and CEO behind the brand is self-made multi-billionaire Sheldon Adelson, the biggest and baddest casino owner on the strip. Adelson went from sleeping on the floor of a Bosten tenement to the world’s richest casino owner with an estimated personal wealth of $39 billion. And this sum is only getting higher: he has just signed a new employment contract with LVS that boosts his salary by 400% to an incredible $5 million a year, not counting a potential bonus.

TipRanks reveals that 84-year old Adelson has a $25 billion holding in LVS- which has so far netted him a 67% success rate and 126% average return. Most recently, on September 8 he ramped up his insider holding of LVS with the purchase of almost $6 million of shares. Overall the stock has a Moderate Buy analyst consensus rating. Notably, five-star Stifel Nicolaus analyst Steven Wieczynski published a Buy rating on the stock with a $72 price target (14% upside potential) at the beginning of September.

Regeneron (NASDAQ:REGN)

This leading biotech company aims to use the power of science to bring life-transforming medicines to patients, time and time again. Founded by physician-scientists nearly 30 years ago, its science-driven approach has resulted in six FDA-approved medicines and numerous product candidates in a range of diseases, including asthma, pain, cancer and infectious diseases.

One of the stock’s owners is French pharmaceutical giant, Sanofi S.A. Sanofi has been busy snapping up millions-of-dollars’ worth of Regeneron shares. For example, on August 29, Sanofi made an informative buy transaction of REGN shares worth $35 million. This huge transaction came on the back of an $80 million transaction on August 25 and a $60 million transaction in June. Overall, the five-star insider holds $11.25 billion of Regeneron stock.

The two companies also have a deal to collaborate on drug development, resulting in the successful launch of dupilumab for atopic dermatitis. Now Phase III clinical data has revealed that dupilumab can also treat severe asthma after the drug “demonstrated positive late-stage results with robust efficacy and an extensive safety database.” Sanofi and Regeneron plan to submit an application to the FDA by the end of this year to be able to market dubilumab for both asthma and atopic dermatitis.

“Approximately one million U.S. adults and adolescents live with uncontrolled, persistent asthma, and continue to experience serious asthma attacks, despite taking an intensive regimen of standard therapies,” says George D. Yancopoulos, Chief Scientific Officer of Regeneron.

International Flavors & Fragrances (NASDAQ:IFF)

This innovative New York based company is the brains behind many of the tastes and smells we encounter in our daily lives. “We create sense-sparking offerings in 13 subcategories, ranging from perfume, fragrance ingredients, and cosmetic actives to dairy, beverages, sweet, and savory flavors — co-creating 35,000 products annually” IFF says.

In the last three months, >10% owner Winder Investment has increased its IFF holding by a substantial $170 million of shares. On September 6, for example, Winder picked up $4 million of International Flavors shares. Overall, Winder has invested $1 billion in IFF and luckily this investment has paid off so far. Five-star Winder, which has only invested in IFF, has a 98% success rate and 5.9% average return per 63 transactions on the stock.

On the flip side:

Insiders aren’t looking so bullish on the following shares which have all seen big insider sell transactions:

Hyatt Hotels Corp (NYSE:H): corporate insiders have sold H shares of over $150 million in the last 3 months. In fact the last ten months have seen a slew of insider sell transactions, but no share purchases. The insiders selling range from directors to owners to the Global President of Operations.

Wal-Mart Stores Inc (NYSE:WMT): insiders have been fleeing from this retailer, which is now having to face Amazon’s Whole Foods as a rival. In the last three months, the Walton family (heirs to the Walmart empire) have sold over $1 billion of WMT shares.

Discover which hot stocks insiders are buying and selling right now

 

Harriet Lefton
Harriet Lefton, originally from the UK, began her career as a journalist specialising in the niche world of metal markets. She graduated from the University of Cambridge before becoming a qualified UK lawyer. Now she has turned her attention to the world of financial blogging, covering US stocks, analysts and all manner of things finance-related.

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