According to the Insider Cluster Buys page, a Premium feature of GuruFocus, five stocks with high insider buys over the past two months are Orange County Bancorp Inc. (OBT, Financial), FS KKR Capital Corp. (FSK, Financial), Immuneering Corp. (IMRX, Financial), Southern States Bancshares Inc. (SSBK, Financial) and German American Bancorp Inc. (GABC, Financial).
While Peter Lynch developed a simple rule to measure a stock’s relative valuation based on an earnings line at 15 times earnings, the Fidelity Magellan Fund manager also said that regarding insider trades, company directors may sell shares for several reasons, but buy shares only when they believe their stock is set to appreciate in value.
GuruFocus’ research adds that stocks with multiple insiders buying shares over the past few months signal potential gains in future months. As such, investors can find opportunities in stocks that have several different company directors and chief officers purchasing shares over the past two months.
Orange County Bancorp
Fifteen insiders purchased shares of Orange County Bancorp (OBT, Financial) during the past two months. The total number of shares purchased was 40,260.
GuruFocus ranks the Middleton, New York-based bank’s financial strength 4 out of 10 on the back of a low Piotroski F-score of 2 and an equity-to-asset ratio that underperforms more than 76% of global competitors despite cash-to-debt and debt-to-equity ratios outperforming more than 81% of global banks.
FS KKR Capital
Thirteen insiders purchased shares of FS KKR Capital (FSK, Financial) during the past two months. The total number of shares purchased was 78,697.
The Philadelphia-based business development company operates as a partnership between FS Investments and KKR & Co. (KKR, Financial) subsidiary KKR Credit. GuruFocus ranks the company’s financial strength 2 out of 10 on several warning signs, which include equity-to-asset and debt-to-equity ratios underperforming more than 84% of global competitors.
Gurus with holdings in FS KKR include Ken Fisher (Trades, Portfolio) and Caxton Associates (Trades, Portfolio).
Immuneering
Ten insiders purchased shares of Immuneering (IMRX, Financial) during the past two months. The total number of shares purchased was 1,186,862.
The Cambridge, Massachusetts-based oncology and neuroscience biotech company completed its initial public offering on Aug. 3. According to GuruFocus, Immuneering’s cash-to-debt ratio of 51.39 and debt-to-equity ratio of 0.02 outperform over 66% of global competitors.
Southern States Bancshares
Nine insiders purchased shares of Southern States Bancshares (SSBK, Financial) during the past two months. The total number of shares purchased was 112,000.
According to GuruFocus, the Anniston, Alabama-based bank has a cash-to-debt ratio of 3.3 and a debt-to-equity ratio of 0.31. Both ratios outperform more than 62% of global competitors.
German American Bancorp
Nine insiders purchased shares of German American Bancorp (GABC, Financial) during the past two months. The total number of shares purchased was 6,451.
GuruFocus ranks the Jasper, Indiana-based bank’s financial strength 3 out of 10 on the back of cash-to-debt ratios that underperform more than 88% of global competitors despite equity-to-asset and debt-to-equity ratios outperforming more than 65% of global banks.
Gurus with holdings in German American Bancorp include Jim Simons (Trades, Portfolio)’ Renaissance Technologies and Chuck Royce (Trades, Portfolio)’s Royce Investment Partners.
