Insider buying has remained high for some time taking into consideration weekly ratios and clearly highlighting its meaningfulness when compared to historical standards. General Electric Company (NYSE:GE), Dicks Sporting Goods Inc. (NYSE:DKS) and Opko Health Inc. (NYSE:OPK) are some of the stocks that have experienced increased levels of insider buying in the recent past.
Minimal insider selling in a stock usually does not get the attention of investors but when the levels increase, it usually suggests optimism of stock prices growing, in the long run.
“If you have a little insider selling that does not mean really anything, however if you have extreme insider selling that is when it is a bearish signal,” said Catalyst’s senior portfolio manager, David Miller, in an interview on CNBC.
General Electric Company (NYSE:GE) remains the top pick for Mr. Miller especially after its CEO bought some stocks in the company, as well as other multiple executives. General Electric Company (NYSE:GE) also has a buyback which according to the analyst highlights the company’s management belief that the stock price will appreciate as the company carries out the spin-off of its capital division.
Opko Health Inc. (NYSE:OPK) is another stock that is under the watch of Mr. Miller despite being below its 52 week high. The fact that Phil Frost is buying hundreds of thousands of stocks in the company is an indication that the company has a huge potential going forward. Opko Health Inc. (NYSE:OPK) is currently trading at the $8 mark but with a $3 billion market cap making it an-extremely cheap stock in the market.
“If you look at Opko health, you will see Phil Frost buying several hundred thousand dollars’ worth of stock virtually every day for the past year. […] He is a multi-billionaire, he has enough cash personally that he could buy the entire company if he wanted to” said Mr. Miller.
Dicks Sporting Goods Inc. (NYSE:DKS) is another stock that is in Miller’s list having experienced huge amount of selling in the past from its executives. Things have changed as the executives are now buying in bulky an indication that the stock is headed in the right direction.