U.S. stocks closed with a mixed tone on Wednesday, but a keen eye could spot some significant insider trades.
When insiders buy shares, it’s a sign of faith in the company’s future or a belief that the stock is undervalued. While this doesn’t dictate investment decisions, it can provide confidence in going long on the stock.
Let’s briefly explore some recent intriguing insider purchases.
Baking Up Confidence: Flowers Foods
- The Purchase: Director Edward J. Casey Jr of Flowers Foods, Inc. (FLO) acquired 5,000 shares at an average price of $23.55, totaling about $117,750.
- Recent Activity: Flowers Foods had subdued quarterly earnings released on Feb. 8.
- About the Company: Flowers Foods Inc. is a U.S. company specializing in bakery goods for retail and foodservice nationwide.
Heading Towards Diversification: Compass Diversified
- The Trade: Ryan J. Faulkingham of Compass Diversified (CODI) acquired 4,250 shares at an average of $23.46, amounting to around $99,725.
- Recent Developments: On March 19, Citi Trends reported unsatisfactory fourth-quarter financial results.
- Business Overview: Compass Diversified Holdings is a U.S.-based conglomerate with branded consumer and industrial business segments.
Equipment for Growth: CVD Equipment
- The Transaction: ADA Partners, L.P., a 10% owner, purchased 217,554 shares of CVD Equipment Corporation (CVV) at an average price of $5.02, investing approximately $1.08 million.
- Recent News: CVD Equipment reported a loss in the fourth quarter on March 28.
- Company Focus: CVD Equipment Corp engages in the manufacturing of chemical vapor deposition equipment and other advanced systems essential for semiconductor and electronic component production.
Dressing for Success: Ross Stores
- The Deal: President and CMO DD’S Discounts Karen Fleming of Ross Stores, Inc. (ROST) purchased 3,482 shares at an average price of $147.51, amounting to around $5,230.
- Recent Performance: Ross Stores reported strong fourth-quarter results on March 5.
- Company Profile: Ross Stores operates as an off-price apparel and accessories retailer, with its Ross Dress for Less brand being a major revenue driver.
Consider these insider purchases as a unique lens into potential opportunities in the market.