3 Stocks “Strong Buy” Insiders are rising
Insider trading has a bad sound to it, but what is it really about? The people in the company are the corporate officers – the Chairman and Vice-Chairman and CEO and members of the Board of Directors, the people who run companies – and the private world. Their position helps them ̵6;know well’ and makes them aware of the inner workings of their company. Using that information to buy stocks would be undervalued, except for two points. First, they trade in public stocks. They do not hide their transactions and the investing public can see what they are doing – and read the suggestions. And second, people in the company are not just trying to make money for themselves. Their position makes them accountable – to the board of directors, to the higher executives and to the company’s shareholders – for making profits. What this means for investors, is that insider moves provide valuable hints about the legitimacy of the stock. A casual stockbroker can come up with a viable strategy just by noticing and following the trades of those in the company. TipRanks tracks these moves and makes it available to the public through its Insider Hot Stocks tool. With up to date data and plenty of filters, this tool can bring some interesting stock options to light. We have selected three “Strong Buy” stocks with recent insider buying that should be considered by investors. Raytheon Technologies (RTX) The first is Raytheon, a major research and manufacturing contractor for the US aviation and defense industry. The company manufactures a variety of air-to-ground guided missiles and fighter radar systems used by the US Air Force. The military tries to make the contracting process as diverse as possible, but there are a few limited companies that are capable of producing high-end, modern hardware for the Pentagon – and Raytheon benefits from the into part of a small club. The ongoing coronavirus crisis pushed Raytheon’s sales down in Q1, and both sales and earnings decreased in Q2. However, the third quarter rebounded as EPS rose 45% to 58 cents. It’s important to note that RTX has consistently beat its quarterly earnings forecast over the past 2 years. Along with quarterly earnings, Raytheon announced dividend payments, at 47.5 cents / common share. This is the third consecutive quarter the dividend at this level; The company reduced payments earlier this year, to keep prices affordable when stock prices fell. RTX’s dividend yielded 3.5%, nearly double the industrial average for its peers. Turning to the insiders, we see two major purchases over the past few days. First, Chairman and CEO Gregory Hayes spent $ 3.35 million to buy 61,406 shares in his company. The second largest purchase was from Thomas Kennedy, who bought 19,000 shares worth about $ 999,800. Raytheon analyst Michael Eisen said: “We believe the company is doing well on what is under its control, one day after its third quarter earnings release, realizing strength. synthesizing and creating FCF… ”Looking at the details and strengths of the company, Eisen adds,“… we consider the company’s business book to be one of the most compelling to mention with its Closely linked with the fastest powered rockets, missile defense systems, networking and space. Along with his comments, Eisen gave Raytheon an Outperform rating (ie Buy) and his $ 68 price target shows the stock up 22%. (To view Eisen’s tracking profile, click here) Overall, Raytheon’s Strong Buy analyst consensus rating is unanimous, based on 7 recent Buy reviews. The stock is being sold for $ 55.61 and the average price target of $ 76.71 implies a one-year gain of 38%. (See RTX stock analysis on TipRanks) Ares Capital Corporation (ARCC) Next, Ares Capital, is an asset management company with a focus on mid-market business development. Companies like Ares that play an important role in the business world, providing cash, capital, credit, and finance to smaller projects may have difficulty accessing the money market. Ares boasts more than 350 companies in its portfolio, with that portfolio worth more than $ 14 billion. After a hit on sales, followed by falling EPS, Ares is beginning to see a recovery in the first half of this year. Revenue grew 49%, from $ 333 million in Q2 to $ 497 million in Q3. EPS was flat, at 39 cents, but beat estimates for both Q2 and Q3. Outlook for Q4. is another 39 coins in EPS. In a sign the company feels confident, Ares has declared Q4 dividends at the end of October. The payout, expected at the end of December, is 40 cents per common share. Annual dividends amount to $ 1.60 and deliver an impressive 11.57%, or nearly 6 times the average found in S&P listed companies. The deal cost him $ 1,048 million, and came just two months after Ares officials and directors made a series of smaller – but well-informed – stock purchases. Oppenheimer analyst Chris Kotowski points out that ARCC remains committed to holding a reliable dividend and writes about the company’s value to investors, “We continue to see ARCC as a company that holds a lot of BDC space brings the scale, diverse holding rate and the history of preserving NAV over difficult times … We see ARCC giving investors the comfort of owning a large, long-standing BDC. with a great long-term, cyclical track record… ”Kotowski’s $ 16 price target implies a 12% gain in a year and supports his Outperform (or Buy) rating on share. (To view Kotowski’s tracking profile, click here) Usually analysts agree on a stock, so when it happens, take note. ARCC’s Strong Buy consensus rating is based on 12 consensus Buys. The stock’s $ 16.08 average price target is in line with Kotowski’s point of view. (See ARCC stock analysis on TipRanks) Banc of California (BANC) Last on our list is a full-service business bank, one of the largest in the state of California. Headquartered in Santa Ana, the bank focuses on the SME business through a network of 39 offices, including 31 service branches, across the state from San Diego to Santa Barbara. Banc of California boasts over $ 7.8 billion in total assets. Like many banking industries, the economic downturn in the first half of 20 is bad news for BANC. However, the company bounced back, and after negative earnings in Q1 and Q2 reported positive net EPS of 24 cents in Q3. This figure is much higher than the 14-cent forecast and perfectly matches the company’s pre-crisis performance. Sales drop in Q1 also returned to historical levels, at $ 59.8 million for Q3. After dividends, the current quarterly payout of 6 cents per common stock is fine. in the past 6 quarters. It rates annually at 24 cents per share and yields a 2% return, which is almost exactly the same average found among those who pay dividends in the S&P 500. Credibility here is reliability. and the company’s commitment to make payments. saw the first major internal purchase in 4 months. Last Thursday, October 29, Chairman and CEO Jared Wolff bought 10,000 shares for $ 115,000. Well Fargo Brazilian Timur Analyst considers BANC as one of his Top Picks and writes about the stock, “As long as credit is held and we think it will happen, we look forward to Further income dynamics, TBV growth and discount valuations provide more additional returns … Credit trends are well maintained, due to overdue debts, overvalued balances. pot / classifier and inactive are both improved sequentially. Finally, the Brazilian rate the stock Overweight (ie Buy) and sets a price target of $ 15 indicating a possibility of 23% growth over the next 12 months. (To see Brazil’s performance, click here) Overall, the Banc of California holds a Strong Buy from analyst consensus, based on 4 reviews including 3 Buy and 1 Hold. The stock has an average price target of $ 14.17, with the potential to increase 16% from the transaction price of $ 12.19. (See BANC stock analysis at TipRanks) To find good ideas for trading stocks at attractive prices visit the Best Stocks to Buy on TipRanks, a newly launched instrument. consolidating all TipRanks equity insights. of prominent analysts. Content is used for informational purposes only. It is very important to do your own analysis before making any investments.