U.S. stocks closed mixed on Wednesday, but a few notable insider trades caught the eye of investors.
Insider purchases can be a beacon of confidence in a company’s future or a belief in undervaluation. Such moves present a potential opportunity to go long on the stock. However, they should not serve as the sole basis for investment decisions. At most, they can fortify conviction in a buying strategy.
Let’s delve into some recent significant insider purchases that have made waves in the market.
Flowers Foods Acquisition
- The Trade: Flowers Foods, Inc. FLO Director Edward J.. Casey Jr acquired a total of 5,000 shares at an average price of $23.55. This purchase amounted to approximately $117,750.
- What’s Happening: Flowers Foods posted subdued quarterly earnings on Feb. 8.
- Overview: Flowers Foods Inc. is an American company specializing in bakery food products for retail and foodservice establishments across the United States.
Compass Diversified Investment
- The Trade: Compass Diversified CODI Ryan J Faulkingham purchased a total of 4,250 shares at an average price of $23.46, totaling approximately $99,725.
- What’s Happening: On March 19, Citi Trends reported disappointing fourth-quarter financial results.
- Overview: Compass Diversified Holdings is a diversified business conglomerate in the United States with two main segments focusing on branded consumer goods and industrial businesses.
CVD Equipment Transaction
- The Trade: CVD Equipment Corporation CVV 10% owner ADA Partners, L.P. acquired a total of 217,554 shares at an average price of $5.02, amounting to around $1.08 million.
- What’s Happening: CVD Equipment reported a loss for the fourth quarter on March 28.
- Overview: CVD Equipment Corp is involved in the manufacturing of chemical vapor deposition equipment and custom gas control systems, essential for producing semiconductors, electronic components, and a variety of nanostructures and nanomaterials.
Ross Stores Stock Purchase
- The Trade: Ross Stores, Inc. ROST President, CMO DD’S Discounts Karen Fleming bought a total of 3,482 shares at an average price of $147.51, resulting in an expenditure of about $5,230.
- What’s Happening: Ross Stores exceeded fourth-quarter expectations on March 5.
- Overview: Ross Stores functions as an off-price retailer of apparel and accessories, with a major part of its revenue coming from its Ross Dress for Less division.
