It’s been increasingly more difficult to find insider buys with purpose for the last month or so. The number of purchases dropped as did the sort of transactions we hunt for I.E. insiders with a strong track record, large buys or switching from aggressive selling to accumulating stock.
We looked and looked, turned over this rock, that rock, examined every angle we could think of to find one, just one insider buy that meets our “buying with a purpose” criteria, nothing, nada, just blanks this week. Most of what we found were what we term “habitual” buyers. These are executives who purchase their stock no matter what, good times, bad times, at 52-week highs, 52-week lows… they just accumulate.
Instead of focusing on just one company, we’ll highlight a few that appear attractive on their stock charts. While these do not meet our normal criteria, current price movements and trends suggest shares could move higher in the near term.
DPH Holdings Ltd, an investment holding company added to their Blue Apron Holdings, Inc. (APRN) at $4.53 (1). They took their initial position in the direct-to-consumer, meals in a box company at $8.82 in May 2020. APRN stock recently hit its 52-week low of $2.01. As it stands now, Wall Street has a one-year target price for Blue Apron of $10.90. Based on our view of its stock chart, Blue Apron Holdings, Inc. (APRN) could find its way to $7.50ish if it can get past $6.
ChromaDex Corporation (CDXC) doesn’t trade a lot of volume and can get wild. Chief Executive Financial Officer (CFO) is a habitual buyer, dating back to May 2018. (3) However, the micro-cap, biotech’s shares are on the verge of a couple technical buy signals. CDXC recently broke free from a downtrend and could deliver a bullish moving averages crossover in the next couple of days.
Esperion Therapeutics, Inc. (ESPR) recently traded at a three-year low of $23.90. The biotechnology says fewer folks visiting their doctors due to COVID is a hampering prescription growth for their new drug Nexletol. (4) Swiss Biotech investment company BB Biotech swooped in and added $5 million to their holdings at $25.31, their largest single purchase of Esperion. (5)
Normally, we stay away from stocks that trade for less than $1. They can be easily manipulated by unscrupulous traders. However, Surge Holdings, Inc. (SURG) had a slew of insiders make small purchases anywhere from $0.08 to $11 since the middle of October. (6) The thinly traded telecom services company allows retailers to add credit to any prepaid wireless customer’s account for any carrier. Shares put in solid support at $0.08 and seemingly reverses a downtrend on strong volume on November 6th. If the stock can close above $0.125, it could move to its 200-day average of $0.21.
Normally, this quartet of stocks with insider buying would not make our watchlist. However, do to a lack activity and purchases that satisfy one of our “insider buys with a purpose” criteria, we utilized our chart reading experience to highlight a few that could be poised to move higher in the near-term.
All four offer way above average volatility as are appropriate for high risk tolerant investors/traders.