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TipRanks
3 stocks that flash signs of strong domestic buying
Sometimes following a leader is the best investment strategy. And corporate insiders have long been popular leaders to follow. Your combination of responsibility to your shareholders and access to “ hidden ” information about your companies gives your personal investment options an air of authority. The most important thing about these insiders is that whatever they do, they are expected to guide their companies to profitability. Shareholders want a return on investment, boards want accountability, and company officials must meet both standards. So when they start buying shares in their own company, it’s a sign that investors need to do more research. Government regulators, in an effort to level the informational playing field, have required insiders to regularly post their stock transactions, making it a simple matter for investors to follow them. Even better, TipRanks collects the information on Insiders’ Hot Stocks page and provides tools and data filters to easily navigate through the raw data. We chose three actions with recent informational purchases to show how the data works for you. Del Taco Restaurants (TACO) We’ll start with the popular Del Taco, the California-based taco chain. Del Taco has a market capitalization of $ 344 million, more than 600 restaurants and a loyal fan base, giving it a solid foundation in the fast food franchise market. Most of the company’s locations are west of the Mississippi, but the company has made inroads into the eastern US Like many traditional traffic-dependent businesses, Del Taco has had a rough year. The coronavirus crisis had slowed traffic, social and economic blockade policies have reduced income flows. However, the company has started to recover. After strong net losses at the beginning of the year, EPS has returned to positive figures, and third-quarter revenue, $ 120 million, increased more than 15% sequentially. The share price, which fell two-thirds at the height of the economic crisis last winter, has recouped its losses. TACO is now trading up 17% on the year. Insiders are optimistic about the action. The most recent purchase, which helped tilt the needle of sentiment into positive territory, is from Board member Eileen Aptman, who bought 88,952 shares, paying more than $ 650,000. Nick Setyan, an analyst at Wedbush, covers Del Taco and rates the stocks outperforming (i.e. buy). His $ 13 shows the extent of his confidence, indicating room for 40% upside growth. (To view Setyan’s track record, click here) Supporting his position, Setyan wrote: “We believe TACO’s current assessment is based on an overly pessimistic assessment of its medium and long-term fundamentals in a post-COVID QSR environment. .. Even with what we think We believe that these are conservative assumptions of compensation, unit growth and margin until 2022, we estimate EPS growth of 12% in 2022. We estimate that 1% incremental compensation would equal $ 0.04-0.06 in incremental EPS and every 10 bps of incremental margin equals $ 0.01 in incremental EPS in our model ”. Overall, there is little action on the street heading toward Del Taco right now, with only one other analyst chipping in with an opinion on the stock. An additional hold rating means that TACO qualifies as a moderate buy. The average price target is $ 11 and implies a potential upside of ~ 19%. (See TACO’s stock analysis on TipRanks) CuriosityStream (CURI) The next step is CuriosityStream, an online video streaming channel in the educational segment. CuriosityStream specializes in factual video content and offers subscription services. The channel has more than 13 million subscribers around the world. Its founder, John Hendricks, first gained fame with the creation of the Discovery Channel, a cable television channel with a similar theme, in 1985. CuriosityStream is new to the public markets, having conducted an IPO earlier this year to through a merger with Software Acquisition, a special purpose acquisition. company (SPAC) formed as a “blank check” company to make the deal. It’s no surprise that insiders make big buys in new stocks, but the moves on CuriosityStream are worth a note. John Hendricks made three big purchases earlier this month, buying blocks of 15,473 shares, 26,000 shares and 11,684 shares over a four-day period. Hendricks paid $ 473,561 for the new shares. Covering the shares of B. Riley, analyst Zack Silver wrote: “We see that CURI is well positioned to capitalize on the burgeoning global streaming market by establishing itself as the postpaid fact scheduler. It was from television. CURI’s video on demand subscription service (SVOD) differs not only by the large volume of selected factual titles available on the platform, but also by its attractive price … we look forward to CURI’s strategy of monetizing its content to through multiple revenue streams allow for a more efficient path to scale… ”Silver rates the stock as a Buy, and its $ 16 price target implies a 40% increase in one year. (To view Silver’s history, click here) CURI has a Moderate Buying Analyst Consensus Rating based on 2 recent buying reviews. The average target price is $ 14, which suggests that this stock has room to grow ~ 23% from the current trading price of $ 11.50. (See CURI stock analysis on TipRanks) Allegheny Technologies (ATI) Last but not least is Allegheny Technologies, a metallurgical company based in Pittsburgh, Pennsylvania. Allegheny has two business segments: High Performance Materials & Components, which specializes in titanium and nickel-based alloys, and Advanced Alloys & Solutions, which includes stainless and specialty steels, electrical steels, duplex alloys and zirconium, hafnium and niobium. alloys. The company’s metals technology is used in the electrical industry, automotive, aerospace and oil and gas production. Allen’s revenue and shares are down this year as the company has been hit by the crown crisis. Disruptions in supply chains, distribution networks and customer orders have had a negative impact, as have social and economic closure policies. Quarterly revenue is down 37%, from $ 955 million in the first quarter to $ 598 million in the third quarter. Shares are down 21% so far this year. All of this would seem to make ATI a poor stock pick, but the company has used the time to wisely downsize and reorient its production models, Benchmark analyst Josh Sullivan noted when changed its stance earlier this month from Neutral to Buy. He wrote: “We are upgrading ATI to Buy from Hold following the company’s planned exit from basic stainless steel. This move alters ATI’s historical risk profile by eliminating the more volatile vertical … Separating from ATI’s legacy in stainless steel has been a highly sought after investor goal; Going out now also allows ATI to avoid maintenance and a potential excessive inventory build-up during the recovery phase. ” Additionally, Sullivan notes that business in the aerospace sector will likely recover soon, providing a blessing for Allegheny: “With the return to service of the 737-MAX, the upward pressure from Airbus A320 production and available vaccines, the core A more focused aerospace ATI will directly correlate with an aeronautical recovery. ” Sullivan’s buy rating has a price target of $ 21 which means room for 27% growth in the next 12 months. (To see Sullivan’s history, click here) Going back to insider trading, we find that the company’s chief financial officer and executive vice president, Donald Newman, bought 12,500 shares this month, paying more than $ 210,000 for the block. His total stake is now 80,042 shares, valued at $ 1.3 million. In total, Allegheny earns a consensus rating of Moderate Buy, based on an even split between 4 reviews, of 2 purchases and 2 reservations. The stock is priced at $ 16.32 and the average target price of $ 18.25 implies upside potential of ~ 12%. (See ATI’s stock analysis on TipRanks.) For great ideas for trading stocks with attractive valuations, visit TipRanks Best Stocks to Buy, a recently launched tool. that brings together all the knowledge about TipRanks stocks. Disclaimer: The opinions expressed in this article are solely those of prominent analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
