Insider buying is increasing with shares from all sectors and industries going on sale. While the list of insider buying stocks is long, here are the top three names in July Occidental Petroleum, Rocket Companies, And comtech, These are top names because their activity is not only high but is distinguished by unusual characteristics that suggest a high potential for stock appreciation. The takeaway is that these companies outperform all others in terms of dollar value, number of inside buyers, and number of transactions.
Occidental Petroleum makes the list again
Occidental Petroleum (NYSE: Oxy, Investing guru Warren Buffett has been in the news because of a range of insiders. Mr Buffett and Berkshire Hathaway made 4 purchases of Occidental Petroleum stock in July, leading to total 11 transactions For over 20% of the total share count in the last 3 quarters. This puts Berkshire Hathaway in a unique position and is a company that typically capitalizes on success. Total institutional and corporate ownership, including Berkshire Hathaway, is over 86% and growing.
With respect to Occidental Petroleum’s value and dividend, the stock trades at a discount to its peers who together trade well below the broad market average. The discount to competitors is partly due to dividends that are well below competitors like Exxon Mobil, but a reducing factor. The company cut the dividend at the start of the pandemic and has yet to bring it back to those levels. In light of the windfall gains for the second quarter, chances are high that the dividend will increase and could be a big one. The payout is currently $0.13 per share quarterly and was once $0.79, a difference of more than 400 percentage points.
Rocket companies do some insider trading
rocket companies (NYSE: RKT, being bought by its two insiders, CEO Jay Farner and Director Matvey Rizik. The duo made 26 purchases in July for a total of $2.85 million in shares, bringing the total insider stake to 94%. It has a hefty proportion of stocks and compounded by 3% institutional ownership and 32% low interest which makes it a tight-lipped and over-sold name in the market. At face value, the stock is set up for short-selling or getting stuck under the weight of the rocket due to the result in ownership numbers. Anyway, the company’s revenue and earnings are down and analyst sentiments are mixed. Analysts put the stock on hold but consider it significantly valuable at current levels. The outlook for Q2 results isn’t bright, either, but the bar is set low, so there’s a chance of outperformance that could spark a short-covering rally and short-squeeze.
Buying High-Yield Small-Cap Comtec
Comtech (Nasdaq: CMTL, is a high-yield small-cap manufacturer that manufactures components for the telecommunications and satellite industry. The stock returns around 3.5% after the stock prices corrected and at least insiders have started buying it. A total of 5 insiders made 6 buys in July for a total of $289,000 or about 0.1% of the current market cap. The purchase is notable not only for the breadth of insider buying, but because it is the first insider activity in years with total holdings approaching 6%. A positive outlook or not, insiders think something is afoot, so the news over the next few months could be good and include supply chain improvements, improved profitability, or better-than-expected results from recent deals. .