According to the Insider Cluster Buys screen, a Premium feature of GuruFocus, five stocks with a high number of insider buy transactions over the past three months include VOXX International Corp. (VOXX, Financial), Rocket Companies Inc. (RKT, Financial), Templeton Global Income Fund (GIM, Financial), Great Elm Group Inc. (GEG, Financial) and TELA Bio Inc. (TELA, Financial).
Legendary Fidelity Magellan Fund manager Peter Lynch once opined that while insiders may sell shares for several reasons, they typically buy shares only when they think their company’s shares are set to appreciate in value. As such, one method investors can use to look for value opportunities is to screen for companies that have a high GF Score and high insider buys in recent months.
The insider trades are primarily sourced from Securities & Exchange Commission Form 4 filings. Any insider who makes a change to their ownership stake in the company through an open market purchase or sale or through other means, like exercising of options or converting of derivative securities, must file a Form 4. The deadline for filing is two days after the change in ownership stake takes place.
VOXX International
Two insiders purchased shares of VOXX International (VOXX, Financial) over the past three months. The total number of shares purchased across 62 transactions is 664,256.
Shares of VOXX traded around $8.57, showing the stock is modestly undervalued based on Friday’s price-to-GF Value ratio of 0.84.
The Orlando, Florida-based consumer audio products company has a GF Score of 69 out of 100 based on a financial strength rank of 7 out of 10, a GF Value rank of 6 out of 10, a momentum rank of 5 out of 10, a profitability rank of 4 out of 10 and a growth rank of 3 out of 10.
Gurus with holdings in VOXX include Kahn Brothers (Trades, Portfolio), Jim Simons (Trades, Portfolio)’ Renaissance Technologies and Jeremy Grantham (Trades, Portfolio)’s GMO.
Rocket Companies
Two insiders purchased shares of Rocket Companies (RKT, Financial) over the past three months. The total number of shares purchased across 50 transactions is 1,585,200.
The Detroit-based mortgage company has a GF Score of 18 out of 100 based on a financial strength rank of 3 out of 10 and a profitability rank of 2 out of 10. Despite this, the stock does not have enough data to compute a growth rank, GF Value rank or a momentum rank and thus, the GF Score may give an incomplete picture of the company’s potential.
Gurus with holdings in Rocket Companies include Chris Davis (Trades, Portfolio)’ Davis Selected Advisors and Simons’ Renaissance Technologies.
Templeton Global Market Fund
Two insiders purchased shares of Templeton Global Market Fund (GIM, Financial) over the past three months. The total number of shares purchased across 40 transactions is 8,377,971.
The Fort Lauderdale, Florida-based closed-end fund has a GF Score of 38 out of 100 based on a financial strength rank of 8 out of 10, a momentum rank of 3 out of 10 and a profitability rank of 2 out of 10. Despite this, the stock does not have enough data to compute a growth rank or a GF Value rank and thus, the GF Score may give an incomplete picture of the company’s potential.
Great Elm Group
Five insiders purchased shares of Great Elm Group (GEG, Financial) over the past three months. The total number of shares purchased across 23 transactions is 1,633,568.
Shares of Great Elm Group traded around $2.06 on Friday. Although the stock may seem modestly undervalued based on Friday’s price-to-GF Value ratio of 0.7, GuruFocus labeled the stock a possible value trap based on the company’s low rank of 3 out of 10 for financial strength and profitability.
The Waltham, Massachusetts-based medical equipment company has a GF Score of 60 out of 100: Despite low financial strength and profitability, the company has a rank of 10 out of 10 for momentum and GF Value. However, the GF Score may give an incomplete picture of the company’s potential because it does not have enough data to compute a growth rank.
TELA Bio
Four insiders purchased shares of TELA Bio (TELA, Financial) over the past three months. The total number of shares purchased across 20 transactions is 1,037,470.
Shares of TELA Bio traded around $8.33, approximately 57% below its GF Value. Despite this, GuruFocus labeled the stock as a possible value trap based on the company’s low financial strength rank of 2 out of 10 and profitability rank of 1 out of 10.
Based on the low ranks for financial strength, profitability and GF Value, the Malvern, Pennsylvania-based medical technology company has a GF Score of just 30 out of 100. Despite this, the company does not have enough data to compute a growth rank and a momentum rank and thus, the GF Score may give an incomplete picture of its potential.
