If an insider is putting their money where their mouth is, there’s a reason for it.
We also have to consider that it’s the insiders who know their company the best. So, if they’re buying, dig a bit deeper. Just don’t buy because a. CEO did. Do your due diligence to keep your capital protected before jumping in.
That being said, here are three recent insider buys we’ve been tracking.
Asana Inc.
Keep an eye on beaten-down shares of Asana (NYSE: ASAN).
CEO Dustin Moskovitz just bought another 225,000 shares on July 8. He paid an average cost of $14.60 per share for a total of $3,285,000. He also picked up about $6.86 million worth of stock in March and June, picking up 450,000 shares at an average price of $15.25 per share.
From his current role as CEO, Moskovitz will transition to chair of the board. Dan Rogers will become Asana’s new CEO on July 21.
“Under Moskovitz’s leadership, Asana has grown into a leading enterprise work management platform for human and AI coordination. With more than 170,000 customers, Asana is trusted by over 85% of Fortune 500 companies and generates over $700 million in annual revenue,” as noted in a company press release.
We also have to consider that a good deal of negativity has been priced into the stock. Plus, this is a company with very strong sales predictability and no debt. Granted, 9% year over year isn’t anything to write home about, but it’s still expanding. In addition, operational guidance was recently increased by 5% to 5.5%.
With the negativity priced in, a new CEO, a strong but oversold stock, and significant insider buying, Asana appears to be an impressive opportunity.
Match Group
Match Group (NASDAQ: MTCH) CEO Spencer Rascoff recently bought $2 million for 70,885 shares.
He paid an average price of $27.89 a share for 53,398 of them and an average price of $28.54 for 17,487. Rascoff already bought $2 million worth of shares at an average price of $34.41 on Feb. 6. He now owns 137,478 shares of Match.
And, as quoted by Barron’s, “100 days in as CEO and more confident than ever in our team and Match Group’s future. Friday, I purchased $2 million of stock of MTCH, in addition to the $2 million I bought last quarter. Energized by the responsibility and privilege of defining the future of connections for this category.”
Even better, the company declared a quarterly dividend of 19 cents per share, which is payable on July 18 to shareholders of record as of July 3.
Advanced Micro Devices
Advanced Micro Devices (NASDAQ: AMD) Executive Vice President and Chief Commercial Officer, Philip Guido, bought 8,800 shares of the stock for just under $1 million on May 20.
With AMD, we have to remember the company is exposed to a multi-billion-dollar addressable market for data center AI chips. In fact, according to company Chair and CEO Lisa Su, the addressable market for AI chips will reach $500 billion by 2028, which is up from her prior estimate for $400 billion by the time 2027 rolls around.
“This is roughly equivalent to the annual sales for the entire semiconductor industry in 2023. Su is optimistic about the long-term market size potential for AI chips, and believes that AI demand has exceeded the company’s expectations over the past year,” as noted by Barron’s.
Also, the company’s latest generation of AI chips, the MI300, is its fastest ramping product ever. Lisa Su added that AMD’s MI300X chip, which rivals dominant AI chipmaker Nvidia’s H100, is “the most advanced AI accelerator in the industry,” as noted by Time.com.
Plus, analysts at HSBC just upgraded AMD to a buy rating on potential AI revenue upside. The firm has a $200 price target, citing AMD’s successfully launched M2350 series.
Thor Industries
Thor Industries (NYSE: THO) co-founder and former CEO Peter Orthwein paid $256,200 on June 20 for 3,000 shares at an average price of $85.40 per share. The rebounding stock is now up to $92.42 and could potentially retest $102.50 near term.
Fueling more upside, the company re-authorized a $400 million share buyback program, which will expire on July 31, 2027. “As we look ahead, we will continue to be buyers of our stock as long as its price is disconnected with our long-term value proposition, underscoring our confidence in the strength of our company and the potential for future growth,” said Bob Martin President and CEO, as quoted in a company press release.
Thor Industries also just paid out a quarterly dividend of 50 cents per share, which was payable on July 15 to shareholders of record as of July 1.
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