The stock market saw a positive close on Friday, but it’s the insider trading activity that’s catching investors’ attention. When company insiders buy shares, it often signals their belief in the company’s future success or indicates that they see the stock as undervalued. While this isn’t a guaranteed indicator of future stock performance, it can add weight to existing bullish sentiment and provides a potential entry point for investors looking to go long.
Here are three recent notable insider purchases that are worth examining:
Coupang:
Neil Mehta, a director at Coupang, Inc. (CPNG), purchased 300,000 shares at an average price of $22.94, investing approximately $6.9 million. This follows the company’s second-quarter earnings report on August 6th, where Coupang exceeded analysts’ expectations by posting a profit of 7 cents per share. Although revenue slightly missed estimates at $7.32 billion, the positive earnings highlight the company’s potential for growth. Coupang operates as an e-commerce platform in South Korea and is known for its wide range of products, including apparel, electronics, food, furniture, and more.V.F. Corporation:
V.F. Corporation (VFC) Director Richard Carucci acquired 15,000 shares at an average price of $16.70, for a total of $250,500. This purchase follows the company’s announcement of better-than-expected first-quarter financial results on August 6th. V.F. Corporation is a leading global apparel company with a diverse portfolio of brands, including Vans, The North Face, Timberland, and Dickies.FAT Brands:
Mark Elenowitz, a director at FAT Brands Inc. (FAT), bought 3,000 shares at an average price of $10.83, for a total investment of $32,483. This purchase comes after the company reported somewhat disappointing quarterly results on July 31st. Despite the mixed earnings, the insider purchase may suggest confidence in the company’s long-term growth trajectory. FAT Brands is a multi-brand restaurant franchising company known for developing and operating various restaurant concepts, including quick service, fast casual, and casual dining establishments.While insider trades offer valuable insight, they shouldn’t be the only factor influencing investment decisions. It’s always crucial to conduct thorough research, analyze a company’s fundamentals, and consider a range of factors before making any investment decisions.
