As well as analysts, there’s another valuable source of investing inspiration out there. If we turn to Insider Stocks’ tool, we can delve into all the latest insider purchases. These are the stocks that insiders- be it company executives or 10% + share owners- are snapping up right now. And the reason why this is so interesting is because the timing of these transactions can provide a critical insight into how these insiders see the company performing. Do the people who know the company best consider it a compelling investing opportunity right now? If the answer is ‘yes’ this is a clear bullish signal in the company’s favor.
That certainly seems to be the case with these three stocks. Let’s take a closer look now:
1. GTT Communications (NYSE:GTT)
In the last three months insiders bought shares worth a whopping $56.16 million. GTT Communications is a multinational telecommunications and internet provider company based in Virginia. And just two days ago five-star insider Spruce House Partnership LP bought $29.5 million GTT shares, taking its total holding to almost $406 million.
Bear in mind, Spruce have a stellar track record with its investing decisions. To date, the company owner scores a 90% profitable transaction rate with an average return per transaction of 41%.
Spruce isn’t alone in its upbeat take on GTT’s outlook. Top-rated Oppenheimer analyst Timothy Horan (Profile & Recommendations) recently reiterated his GTT Buy rating with a $62 price target. This indicates sizeable upside potential of over 40% from the current share price ($43).
According to Horan, GTT’s niche is being able to provision broadband globally to any location. This is mostly over its Ethercloud network with responsive customer care. He is a fan of the company’s recent ‘transformative’ $2.3 billion Interoute acquisition.
“We believe GTT’s unique focus allows it to find highly accretive acquisitions that are ignored by other market participants, allowing it to extend its network and services, setting it up for strong FCF growth” concludes the analyst. See what other Top Analysts are saying about GTT.
2. Adaptimmune Therapeutics (NASDAQ:ADAP)
UK-based Adaptimmune is working to transform cancer treatment with its novel immunotherapies. Specifically, its enhanced T-cell therapies work with the immune system to improve detection, targeting and ultimately the destruction of cancer cells.
Notably, over the last three months, insider purchases of this stock have totaled $209.16 million. This includes multiple purchase over the last week, such as a $24.9 million investment from director and owner David Mott. A top-performing insider, Mott now owns just over $1 billion of ADAP shares (with a further $1 billion invested in other biotech stocks).
Note that the stock is down over the last three months, but on a year-to-date basis, shares are still trading up by an impressive 67%. And top Raymond James analyst Reni Benjamin (Profile & Recommendations) sees further growth ahead. He has a ‘Buy’ rating on ADAP due to its promising start in developing therapies that can shrink solid tumors- potentially leading to improved survival outcomes.
“With positive preliminary safety data, data readouts from several ongoing clinical studies expected by YE18, a marquee partner like GlaxoSmithKline, and a strong cash position of $140 million (pro forma), we continue to recommend shares of Adaptimmune to long-term, risk tolerant investors” Benjamin told investors. See what other Top Analysts are saying about ADAP.
3. Six Flags Entertainment (NYSE:SIX)
Six Flags is the world’s largest regional theme park operator. The company currently owns 19 locations across the U.S., Canada and Mexico. Even though it reported bankruptcy back in 2010, SIX is successfully turning itself around. The company now boasts a significantly de-levered balance sheet and very experienced new management.
“Management remains happy with the state of the consumer and has found customers more willing to commit to season passes and memberships” comments Oppenheimer’s Ian Zaffino (Profile & Recommendations). He has a ‘Buy’ rating on the stock coupled with an $80 price target (15% upside potential).
From an insider perspective, we can see that CEO & President James Reid-Anderson just snapped up $2.3 million SIX shares. This was on the back of a $7 million purchase two months ago, as well as a smaller purchase from director Richard Roedel. As a result, total insider purchases of the stock come to $9.72 million in just three months. See what other Top Analysts are saying about SIX.
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