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4 Stocks With CEO Buys in the Past Month

Application of GuruFocus' CEO Buys Screener

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James Li
Jul 08, 2021

Summary

  • Peter Lynch said that insiders buying shares can signal price appreciation.
  • GuruFocus’ All-in-One Screener listed a few stocks with CEO buys over the past month.
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According to the CEO Buys Screen, a Premium All-in-One Screener template, four stocks that had at least three insider buys including the CEO during the past month are REV Group Inc. (

REVG, Financial), Vincerx Pharma Inc. (VINC, Financial), Core Molding Technologies Inc. (CMT, Financial) and Processa Pharmaceuticals Inc. (PCSA, Financial).

Legendary Fidelity Magellan Fund manager Peter Lynch said that while company insiders may sell shares for several reasons, board members and directors buy shares for a single reason: They believe their company's stock is due to increase in value. GuruFocus’ research further suggests that stocks with multiple insider buys over the past three months signaled gains to come. Conviction is increased when top executives like the CEO and chief financial officer are also buying company shares.

As such, investors may find opportunities in stocks that had multiple insider buys over the past month, including the CEO. GuruFocus’ CEO Buys Screen listed four companies with at least three insider buys over the past month.

REV Group

Five insiders bought shares of REV Group (

REVG, Financial) over the past month. The aggregate number of shares purchased is 80,992, including 19,292 shares from the CEO.

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The Brookfield, Wisconsin-based company designs, manufactures and distributes heavy construction vehicles for a wide range of industries. GuruFocus ranks the company’s profitability 5 out of 10: REV Group has a solid Piotroski F-score of 6 despite profit margins and returns underperforming more than 65% of global competitors.

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Gurus with holdings in REV Group include

Jim Simons (Trades, Portfolio)’ Renaissance Technologies and Caxton Associates (Trades, Portfolio).

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Vincerx Pharma

Five insiders purchased shares of Vincerx Pharma (

VINC, Financial) over the past month. The total number of shares purchased is 29,580, including 7,830 shares from the CEO.

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The Palo Alto, California-based clinical-stage life sciences company develops paradigm-shifting therapies intended to address unmet needs for the treatment of cancer. Vincerx CEO Ahmed Hamdy said that the U.S. Food and Drug Administration’s clearance of VIP152 allows the company to conduct Phase 1b trials of the investigational drug on patients with relapsed or refractory chronic lymphocytic leukemia and Richer syndrome.

Vincerx said that the company had $53.4 million in cash and cash equivalents at the end of the first quarter.

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Core Molding Technologies

Seven insiders purchased shares of Core Molding Technologies (

CMT, Financial) during the past month. The aggregate number of shares purchased is 15,545, including 8,820 shares from the CEO across two transactions.

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The Columbus, Ohio-based company manufactures a wide range of moldings and reinforced plastic products. GuruFocus ranks the company’s profitability 7 out of 10: Even though profit margins and returns underperform more than 65% of global competitors, Core Molding Technologies has a high Piotroski F-score of 7 and three-year revenue and earnings growth rates that outperform over 72% of global chemical companies.

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Processa Pharmaceuticals

Four insiders purchased shares of Processa Pharmaceuticals (

PCSA, Financial) during the past month. The aggregate number of shares purchased is 15,000, including 10,000 shares from the CEO.

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The Hanover, Maryland-based clinical-stage biotech company produces drug products for the treatment of several fibrotic-related diseases. GuruFocus ranks the company’s financial strength 7 out of 10 on several positive investing signs, which include a cash-to-debt ratio that outperforms more than 68% of global competitors and a debt-to-equity ratio that outperforms over 87% of global biotech companies.

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  • CEO Buys, CFO Buys: Stocks that are bought by their CEO/CFOs.
  • Insider Cluster Buys: Stocks that multiple company officers and directors have bought.
  • Double Buys:: Companies that both Gurus and Insiders are buying
  • Triple Buys: Companies that both Gurus and Insiders are buying, and Company is buying back.

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Disclosures

I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Stocks mentioned in the article do not constitute a recommendation. Investors must do their own research before investing in the stocks mentioned.
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