According to the Double Buys Screener, a Premium feature of GuruFocus, five stocks with high guru and insider buys over the past few months include Intel Corp. (INTC, Financial), Neogen Corp. (NEOG, Financial), Kyndryl Holdings Inc. (KD, Financial), Avantor Inc. (AVTR, Financial) and Macerich Co. (MAC, 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.
On the other hand, the trades for institutional investors are sourced from third-quarter 13F filings. Investors should be aware that the 13F filings do not give a complete picture of a firm’s holdings as the reports only include its positions in U.S. stocks and American depository receipts, but the reports can still provide valuable information. Further, the reports only reflect trades and holdings as of the most-recent portfolio filing date, which may or may not be held by the reporting firm today or even when this article was published.
Intel
Intel (INTC, Financial) had four insider buys over the past three months. The total number of shares purchased was 108,830.
Shares of Intel traded around $28.51, showing the stock is modestly undervalued based on its price-to-GF Value ratio of 0.63 as of Tuesday.
The Santa Clara, California-based company has a GF Score of 84 out of 100, driven by a profitability rank of 9 out of 10 and a rank of 8 out of 10 for growth and GF Value despite financial strength ranking 6 out of 10 and momentum ranking just 2 out of 10.
Intel’s profitability ranks 9 out of 10 on several positive investing signs, which include an operating margin that has increased by approximately 1.8% per year on average over the past five years and 10 years of positive operating income over the past decade.
Thirteen gurus bought shares of Intel during the third quarter, including PRIMECAP Management (Trades, Portfolio) and Jim Simons (Trades, Portfolio)’ Renaissance Technologies.
Neogen
Neogen (NEOG, Financial) had four insider buys during the past three months. The total number of shares purchased was 36,000.
Shares of Neogen traded around $15.42, showing the stock is significantly undervalued based on its price-to-GF Value ratio of 0.26 as of Tuesday.
The Lansing, Michigan-based food and animal safety products company has a GF Score of 69 out of 100 based on a financial strength rank of 10 out of 10, a profitability rank of 8 out of 10, a growth rank of 6 out of 10, a GF Value rank of 2 out of 10 and a momentum rank of 1 out of 10.
Neogen’s financial strength ranks 10 out of 10 on several positive investing signs, which include no long-term debt and a strong Altman Z-score of 24.23.
Eight gurus purchased shares of Neogen during the third quarter.
Kyndryl Holdings
Kyndryl Holdings (KD, Financial) had three insider buys over the past three months. The total number of shares purchased was 152,800.
The New York-based technology and infrastructure services company has a GF Score of 19 out of 100 based on a financial strength rank of 5 out of 10 and a profitability rank of 1 out of 10. Despite this, the stock does not have enough data to compute a growth rank, a momentum rank or a GF Value rank and thus, the GF Score may give an incomplete picture of the company's potential.
Seven gurus purchased shares of Kyndryl Holdings during the third quarter.
Avantor
Avantor (AVTR, Financial) had two insider buys over the past three months. The total number of shares purchased was 27,500.
Shares of Avantor traded around $21.61, showing the stock is modestly undervalued based on its price-to-GF Value ratio of 0.76 as of Tuesday.
The Radnor, Pennsylvania-based chemical products company has a GF Score of 76 out of 100 based on a GF Value rank of 9 out of 10, a rank of 6 out of 10 for profitability and growth and a rank of 4 out of 10 for financial strength and momentum.
Seven gurus purchased shares of Avantor during the third quarter.
Macerich
Macerich (MAC, Financial) had seven insider buys over the past three months. The total number of shares purchased was 104,617.
Shares of Macerich traded around $12.39, showing the stock is modestly overvalued based on its price-to-GF Value ratio of 1.29 as of Tuesday.
The Santa Monica, California-based premium mall real estate investment trust has a GF Score of 59 out of 100 based on a momentum rank of 10 out of 10, a profitability rank of 6 out of 10, a financial strength rank of 3 out of 10, a growth rank of 2 out of 10 and a GF Value rank of 1 out of 10.
Six gurus purchased shares of Macerich during the third quarter.
