Insider buying is one of the few market signals that does not hide behind algorithms or price targets. When a director pulls out a personal checkbook and adds to his stake while the rest of the Street is bickering about next quarter’s guidance, he is speaking in the clearest language available.
The transaction is public, the money is real, and the timing is voluntary. As expected, the combination has historically implied that more “abnormal” returns are ahead.
2025 is shaping up to be a year when insiders are putting their money to work with unusual speed. According to returns and filings so far this year, insiders of several companies are buying up their own stocks on the open market. The following three companies specifically stick out.
Eli Lilly And Co (LLY)
Eli Lilly (NYSE:LLY) has delivered terrific gains in the past five years, but the past year specifically hasn’t been as rosy. LLY stock has declined 15.61% in the past year, and management is taking the opportunity to load up.
Eli Lilly has been on a record winning streak, and this is the first time since 2008 that the stock has noticeably declined to such an extent. Insiders, however, don’t seem to think this will last long…. and I’d have to agree.
Revenue grew 37.64% year-over-year to $15.56 billion in Q2. Net income also increased 90.78% YOY to $5.66 billion. Analysts expect 75.88% EPS growth for all of 2025 and 32.57% in 2026. Revenue is also expected to increase by 36.92% in 2025 and 18.75% next year,
The growth could be even more aggressive if its primary competitor, Novo Nordisk (NYSE:NVO), continues falling behind. NVO stock is down 56.7% in just the past year, and the YOY revenue growth is almost a third of what Eli Lilly has delivered.
There have been 8 unique insider buys in the past three months. They seem to expect a quick recovery.
Analysts expect up to 55.61% upside potential in the next 12 months.
Matador Resources (MTDR)
Matador Resources (NYSE:MTDR) is an independent energy company that produces and sells oil and natural gas in the U.S. The biggest revenue stream comes from crude oil sales.
The company is increasing production due to a surge in demand, especially as Europe imports more oil and natural gas from the U.S. and Canada. Matador raised its full-year guidance for 2026 and sees total daily production from 200k to 205k BOE/d, up 2k to 3k on the lower and higher end. They’ve cut drilling times, and their midstream segment hit record EBITDA while lowering CapEx guidance.
It has also increased its dividends consistently and launched its first $400 million share repurchase program back in late April. MTDR stock yields 2.61% with a forward payout ratio of 20.12%.
The stock is down 34.6% from its high, but insiders believe it is poised to bounce back soon. And they may be right, considering energy demand has held steady.
There have been 10 insider buys in the past three months. The average price target is $67.3 and implies 40.3% upside.
Eastman Chemical (EMN)
Eastman Chemical (NYSE:EMN) is a specialty materials company that makes additives, fibers, and, of course, chemical products.
EMN stock is down 49% from its 2021 peak, a major reason for which is the company’s large debt load. In turn, this has led to increased net interest losses as interest rates rose. Net interest losses were $200 million against an operating income of $1.4 billion in FY 2024.
However, the company has remained very profitable and has reduced its debt significantly. Eastman Chemical’s debt has decreased from $7.55 billion in 2014 to $5.1 billion for all of 2024. Cash has also increased from $293 million to $837 million.
On top of that, the company has been buying back shares very aggressively. Outstanding shares are down from 152.5 million in 2013 to 115.2 million in 2024.
There have been 11 insider buys within the past three months. Rate cuts and tariffs causing a boom in industrial demand may be what insiders are betting on. The consensus price target is $87.8, implying 33.1% upside potential.
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