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4 Stocks With High Insider Cluster Buys During February and March

A look at stocks with high number of company insiders buying shares

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James Li
Mar 16, 2021
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According to Insider Cluster Buys, a Premium feature of GuruFocus, four stocks with a high number of unique insider buys during February and March are Camden National Corp. (

CAC, Financial), Talis Biomedical Corp. (TLIS, Financial), Signify Health Inc. (SGFY, Financial) and Malvern Bancorp Inc. (MLVF, Financial).

GuruFocus' research articles mention that according to Fidelity Magellan Fund manager Peter Lynch, insiders may sell shares for a wide range of reasons, but purchase shares for just one reason: the belief that their company's stock price is due to increase.

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The website's research also suggests that stocks that had multiple company directors and executives buying shares over the past few months signaled potential gains.

As such, investors may find opportunities in stocks that have seen multiple insiders purchase shares since February and early March. The number of unique insider buys tracks the number of buys from separate insiders: For example, if Insiders A, B and C each purchase shares in a company over the past month, the number of unique insider buys is three regardless of the number of buy transactions from the three insiders.

Camden

Eight insiders purchased shares in Camden (

CAC, Financial) during the past month. The total number of shares purchased is 6,233.

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The Camden, Maine-based company provides commercial banking solutions to individuals and corporations. According to GuruFocus, the company has a satisfactory Piotroski F-score of 4 and debt ratios that outperform over 55% of global competitors.

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Gurus with holdings in Camden include

Jim Simons (Trades, Portfolio)' Renaissance Technologies and Chuck Royce (Trades, Portfolio)'s Royce Investment Partners.

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Talis Biomedical

Eight insiders purchased shares in Talis Biomedical (

TLIS, Financial) during February. The total number of shares purchased is 6.639 million.

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The Menlo Park, California-based company develops and commercializes products that enable accurate, low cost and rapid molecular testing for infectious diseases at the point-of-care, beginning with the Covid-19 virus. According to GuruFocus, Talis had $21.6 million in cash and cash equivalents for the year ending 2019, with no long-term debt.

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Signify Health

Eight insiders purchased shares in Signify Health (

SGFY, Financial) during February. The total number of shares purchased is 88,900.

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The Dallas-based company creates value-based health payment programs by leveraging advanced analytics, technology and health care providers nationwide. According to GuruFocus, the company's cash-to-debt ratio of 0.10 underperforms more than 80% of global competitors.

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Malvern Bancorp

Seven insiders purchased shares in Malvern Bancorp (

MLVF, Financial) during March. The total number of shares purchased is 1,230.

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GuruFocus ranks the Paoli, Pennsylvania-based bank's financial strength 2 out of 10: Although the company has a good Piotroski F-score of 6, debt ratios are underperforming over 70% of global competitors.

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Disclosure: No positions.

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