Insiders continued to buy at a brisk pace as stocks fall on their face. It was the second week in a row that a long list of corporate insiders bought as Wall Street sold. Last week, we attributed the contrast of activity between insiders and investors to executives seeing their stocks trading below their underlying values.
Although insiders are buying stock, we are going to continue the same path we’ve been travelling for a while, compiling a list of companies to consider buying when the stock market signals the worst is over. We are not there yet.
Like last week, we have multiple companies that meet certain standards.
- Trading for less than book value
- Insider Buys of $99,000 or more
- A one-year price target that is at least 50% higher than its current price
- Projected earnings and sales growth
Elevate Credit, Inc. (ELVT)
Elevate Credit provides online credit solutions to non-prime consumers in the United States. The company offers unsecured online installment loans, lines of credit, and credit cards. Its products include Rise, an installment loan product; Elastic, a line of credit product; and Today Card, a credit card product.
ELVT Chief Strategy Officer Christopher Lutes bought 41,267 shares of the credit company’s shares at $2.42 for a total investment of $99,866. (1) As we type, the stock trades at $2.47 with a book value of $6.11 per share. (2) Meanwhile, Wall Street has a 12-month price target of $4.50.
The Street expects the financial services company to earn $1.05 per share (EPS) in 2023 compared to a loss of $0.08 this year. Sales are also expected to increase from $520.53 million in 2021 to $640.38 next year. (4)
loanDepot, Inc. (LDI)
loanDepot engages in originating, financing, selling, and servicing residential mortgage loans in the United States. It offers conventional agency-conforming and prime jumbo, federal assistance residential mortgage, and home equity loans. The company also provides settlement services, which include captive title and escrow business; real estate services that cover captive real estate referral business; and insurance services, including services to homeowners, as well as other consumer insurance policies.
Chief Executive Officer (CEO) Frank Martell purchased 253,285 shares of the financing company at $2.44, an outlay of $618,160. (5) LoanDepot closed at $2.76 on May 20, 2022 and has a book value of $4.03 per share. (6) Wall Street has a one-year price target of $3.70. (7) Sales and profits are forecasted to grow. The top line is expected to hit $1.81 billion next year versus $1.64 billion this year. Earnings are forecasted to reach $0.49 in 2023 compared to a loss of $0.61 this year. (8)
NN, Inc. (NNBR)
NN is a diversified industrial company that designs, manufactures, and sells high-precision components and assemblies. Its products include electrical contacts, connectors, contact assemblies, and precision stampings for the electrical, general industrial, automotive, aerospace, defense, and medical end markets. This segment also produces various tools and instruments for the orthopedics and medical/surgical end markets.
Chief Executive Officer Michael Felcher, Jr. acquired 50,000 shares of NNBR at $2.385 for $119,265 on May 13, 2022. (9) Its current book value is $5.08 (10) and has a one-year price target of $9.50. (11) The industrials company last traded at $2.58.
NN’s earnings are predicted to reach $0.41 in 2023 versus $0.15 this year with sales of $558.6 million next year against $520 million in 2022. (12)
1 – https://www.secform4.com/insider-trading/1651094.htm
2 – https://finance.yahoo.com/quote/ELVT/key-statistics?p=ELVT
3 – https://finance.yahoo.com/quote/ELVT?p=ELVT
4 – https://finance.yahoo.com/quote/ELVT/analysis?p=ELVT
5 – https://www.secform4.com/insider-trading/1831631.htm
6 – https://finance.yahoo.com/quote/LDI/key-statistics?p=LDI
7 – https://finance.yahoo.com/quote/LDI?p=LDI
8 – https://finance.yahoo.com/quote/LDI/analysis?p=LDI
9 – https://www.secform4.com/insider-trading/918541.htm
10 – https://finance.yahoo.com/quote/NNBR/key-statistics?p=NNBR
11 – https://finance.yahoo.com/quote/NNBR?p=NNBR
12 – https://finance.yahoo.com/quote/NNBR/analysis?p=NNBR