Good Afternoon!
Insider trades can reveal valuable insights into where executives and insiders see potential. By analysing recent activity, I've uncovered a few standout opportunities that could offer promising returns.
After sifting through 346 insider trades, I’ve calculated which ones show the most promise, and here’s what I found:
- $BASE: Up 40% in 2 months after insider activity
- $CATX: CEO makes a 3-point purchase
- and more…
I’ll keep digging into the data to bring you the latest and most actionable insider moves every day.
Have a fantastic day!
Jack
P.S. Click here for the Google Sheet with all of the data for the last 30 days.
💰 Previous Winner
BASE has surged 40% in two months following a significant Director's Top Insider Purchase identified in our September 24th Premium email. This strong performance aligns with the company's steady growth trajectory, bolstered by positive sentiment in the technology sector. Analysts have maintained a 'Moderate Buy' rating, driven by a favorable outlook on Couchbase's capabilities in delivering modern database solutions, which align with increasing enterprise needs for digital transformation and cloud migration. Furthermore, the tech sector's general rally, underpinned by AI-driven investments and broader optimism, has amplified interest in BASE shares.
It opened at $14.56 and is up to $20.42 (+40%).
New 3-Point Purchases
3-point purchases are the highest-rated insider trades. Remember, returns and win rates are calculated using the previous purchase trades by the insider.
Director Purchase at Nu Ride Inc. ($NRDE)
A significant insider transaction has been recorded at Nu Ride Inc. ($NRDE), where a Director acquired 60,900 shares at $1.47 each, amounting to $89,745.89. This purchase represents a 34.9% increase in the insider's vested holdings. With the stock currently trading at $1.46 (-0.9% from the insider's entry price), this buy stands as the second-largest of this insider’s limited transaction history, indicating a noteworthy level of confidence in the company's future trajectory.
Why This Purchase Matters
The Director's transaction size, while slightly below their median purchase of $120,000, is strategically significant given its timing and the insider's historical performance. Historically, this insider’s only prior purchase yielded substantial gains:
- 1-Month Returns: Weighted and median returns of 19%, with a 100% win rate (1/1).
- 3-Month Returns: Weighted and median returns of 52%, also with a 100% win rate (1/1).
Such high win rates on prior transactions, albeit limited in sample size, suggest this insider has demonstrated an acute ability to time their purchases effectively, often aligning with favorable price movements.
Technical Analysis and Price Action
At $1.46, $NRDE's current price reflects a slight dip below the insider's buy-in price of $1.47. This level positions the stock near key support zones, which have historically acted as launch pads for upward momentum.
- Short-Term Indicators: The Relative Strength Index (RSI) hovers near oversold territory, signaling potential buyer interest.
- Volume Analysis: Recent trading volume has been muted, suggesting a consolidation phase that could precede a breakout, particularly with the influx of insider confidence.
- Moving Averages: The stock is currently trading just above its 50-day simple moving average (SMA), a bullish signal, while the 200-day SMA remains below, providing further support.
From a technical standpoint, a sustained hold at current levels could pave the way for a retest of resistance at $1.60, followed by a potential breakout toward $1.75 if momentum strengthens.
Insider Performance and Broader Context
Nu Ride operates in a niche market where insider transactions often serve as leading indicators of strategic shifts. Given the insider's previous record, this purchase suggests a vote of confidence in the company’s near-term operational or financial developments.
- Market Conditions: The broader sector has shown resilience amid recent market volatility, with peer companies in similar niches experiencing renewed investor interest driven by earnings growth and product expansion.
- Potential Catalysts: Recent developments, such as partnerships, contracts, or internal restructuring at Nu Ride, could explain the insider’s increased stake. Although no public announcements have been made, the size of this purchase hints at insider knowledge of positive developments on the horizon.
Historical Returns Analysis
Insider purchases at $NRDE have historically resulted in notable stock price appreciation:
- 1-Month Returns: The only prior purchase achieved a 19% gain, underscoring the potential for short-term alpha generation.
- 3-Month Returns: A staggering 52% gain was realized, demonstrating the stock’s capacity for substantial medium-term growth following insider activity.
The flawless 100% win rate further reinforces the reliability of this insider’s trades as a bullish indicator for Nu Ride’s stock price.
Broader Implications and Risks
While insider transactions often indicate confidence, investors should remain cautious of external variables:
- Sector-Specific Challenges: Supply chain bottlenecks or macroeconomic headwinds could temper short-term growth.
- Low Liquidity: $NRDE's smaller market cap and lower trading volume might amplify price volatility.
However, given the insider’s track record and the technical alignment at current levels, this purchase strongly supports a positive outlook for Nu Ride in the coming months.
Summary
The Director’s purchase at $NRDE is a compelling signal of insider confidence, supported by strong historical returns and favorable technical positioning. With a current price near key support levels and the insider’s past transactions yielding significant gains, this stock may present an attractive opportunity for investors looking to capitalize on potential upside. (link)
CEO Purchase at Perspective Therapeutics, Inc. ($CATX)
In a notable insider transaction, the CEO of Perspective Therapeutics, Inc. ($CATX) purchased 26,500 shares at $3.79 per share, totaling $100,000. This buy increased their vested holdings by 12.8%, marking their second-largest purchase out of three recorded transactions. Following this activity, the stock price has risen to $4.40, a 16.1% gain from the insider’s entry price, reflecting immediate positive momentum.
Why This Purchase Stands Out
This purchase aligns precisely with the CEO's typical median transaction size of $100,000, underscoring a consistent investment strategy. However, the timing of this transaction is particularly significant given its proximity to key resistance levels that were recently breached. This suggests the CEO may anticipate further upside, potentially driven by internal developments or market conditions.
The insider’s track record adds weight to the importance of this buy. Their two prior purchases delivered exceptional returns:
- 1-Month Returns: A weighted average of 28% and a median of 39%, with a 100% win rate (2/2).
- 3-Month Returns: A weighted average of 53% and a median of 65%, also with a flawless 100% win rate (2/2).
These figures highlight the CEO’s remarkable ability to time purchases ahead of significant price appreciation, making their activity a key signal for potential gains.
Technical Analysis and Price Momentum
At its current price of $4.40, $CATX has broken through resistance near $4.20, transitioning into a bullish phase. The stock is displaying a strong upward trend characterized by higher highs and higher lows, with support levels forming near the insider’s entry price of $3.79.
The Relative Strength Index (RSI) remains below overbought territory, suggesting there is room for continued upward momentum. Additionally, trading volume has increased since the purchase, indicating growing market interest. If this trend persists, the stock could target the next resistance level around $4.75, providing further opportunities for gains.
Broader Market and Sector Context
Perspective Therapeutics operates within the biotech sector, which has shown resilience and growth amid broader market volatility. The company’s focus on therapeutic innovation places it in a competitive but high-growth industry. While specific catalysts have not been disclosed, the CEO’s activity may signal confidence in upcoming announcements, such as clinical trial results or strategic partnerships.
Summary
This insider transaction at Perspective Therapeutics is noteworthy due to the CEO’s strong historical performance, the immediate 16.1% price increase since the purchase, and the stock’s bullish technical outlook. With a proven track record of successful trades and favorable market conditions, this purchase serves as a compelling signal of confidence in the company’s near-term potential. For investors, this transaction could indicate a promising entry point, with the potential for continued upside in the months ahead. (link)
All New Top Purchases
The top purchases made by insiders yesterday. Remember, returns and win rates are calculated using the previous purchase trades by the insider.
Repeat Top Insider Purchases at BDCO and TDUP and the first Top Purchases at all of the other companies.
- 2% 1m / 24% 3m avg returns on 17 previous purchases for the CEO & President at BDCO - (link)
- 19% 1m / 52% 3m avg returns on 1 previous purchases for the director at NRDE - (link)
- -1% 1m / 11% 3m avg returns on 10 previous purchases for the Chair, President & CEO at APTO - (link)
- 12% 1m / 2% 3m avg returns on 3 previous purchases for the Chief Executive Officer at IIIV - (link)
- 8% 1m / 29% 3m avg returns on 1 previous purchases for the General Counsel and Secretary at TWFG - (link)
- 16% 1m / 20% 3m avg returns on 8 previous purchases for the director at TDUP - (link)
- 2% 1m / 16% 3m avg returns on 17 previous purchases for the director at FTHM - (link)
- 23% 1m / 3% 3m avg returns on 6 previous purchases for the director at VRCA - (link)
- 5% 1m / 8% 3m avg returns on 70 previous purchases for the Chairman & CEO at NEWT - (link)
- 7% 1m / 26% 3m avg returns on 4 previous purchases for the 10% owner at ASMB - (link)
- 16% 1m / 20% 3m avg returns on 7 previous purchases for the director at TDUP - (link)
- 39% 1m / 65% 3m avg returns on 2 previous purchases for the CEO at CATX - (link)
Click here to access the spreadsheet (it has many more trades, links to all of the trades, and return calculations for each trade)
Top Purchases by Company
The companies with the most top insider purchases in the last 30 days.
TDUP insiders continue to make Top Purchases and moved up to #1. BDCO appears on this list for the first time.
Click here to access the spreadsheet (it has many more rows and more return calculations for each row).