The threat of fines and imprisonment, up to twenty years for the worst offenders, makes insider trading a different game than what it was. Today, insiders must reveal their trading within days of execution or face the fullest extent of the law. Savvy investors can use those filings to uncover hot trades and follow the leader to investment success; Insidertrades.com tracks those trades, so you don’t have to. This article highlights the top three stocks insiders bought over a 90-day look-back period; all are moving higher and have ample upside potential.
A Major Shareholder Doubles-Down on Perspective Therapeutics
Perspective Therapeutics (NYSE: CATX) focuses on targeted alpha oncology therapies. It has several therapies in late-stage clinical trials, a partnership to develop therapies with Bristol-Meyers Squibb (NYSE: BMY), and a major shareholder recently doubled down on their holdings. Lantheus Holdings (NASDAQ: LNTH) is a major developer, manufacturer, and distributor of medical diagnostic and therapeutic products worldwide. It purchased roughly 60 million shares, nearly doubling its position bringing the stake to nearly 20%. This is a significant increase in ownership and validation of the business and pipeline. Perspective Therapeutics is the most bought by insiders by share count.
Market support for Perspective Therapeutics is strong. Insidertrades.com tracks six analysts that peg the stock with a consensus Buy rating. The Buy rating has been steady for the last year, but the price target is increasing. The price target revisions lifted the consensus target by 50% in twelve months, with recent activity at the high end of the range. The freshest target is the highest on Wall Street; the Royal Bank of Canada set it and projects a price of $3.00 or nearly 100% upside. Coincidentally, the most-bought stock by dollar value is also a pharma company that was recently bought out.
Liberty Live Group has a Friend in Warren Buffett
Liberty Live Group (NASDAQ: LLYVA) is a complex media company with assets including Formula One (NASDAQ: FWONK) and SiriusXM Radio (NASDAQ: LSXMA). The stock structure is more complex, with at least nine tracking stocks to cover the different business aspects with voting and non-voting rights.
Today’s takeaway is that Berkshire Hathaway (NYSE: BRK-A) owns seven. The positions are high double-digit stakes in most cases, and the firm has been adding to the bulk position this year. The target appears to be SiriusXM, but Liberty Live and Formula One are in the mix.
Analysts are bullish on the group. However, shares of Sirius Series A and C (NASDAQ: LSXMK), the ones most bought by Berkshire, are the most undervalued. Insidertrades.com tracks four analysts with a Moderate Buy rating and a $37.65 price target. That target implies a 55% upside for the stock, putting it at a multi-year high and in full reversal. A move to that level would be bullish and open the door to another $12 of upside.
NB Bancorp is an Aged Institution With Lots of Value
NB Bancorp (NASDAQ: NBBK) has been in business for over 130 years, offering financial services in Massachusetts and surrounding areas—the company only recently IPOd, seeking capital to finance targeted growth opportunities. The IPO was well-received and oversubscribed, leading to a meteoric rise in the share prices. Trading at $15.95, the stock is nearly 15% above its IPO price and still undervalued. The company’s tangible book is near $17.30, suggesting another 9% upside is the minimum to expect.
Insiders are buying this stock and not just one or two. Seven insiders, including several board members, the CEO, CFO, COO, and EVP, made eleven transactions in the look-back window, making this the most bought stock by activity. They own 1.7% of the stock, and institutional ownership is also rising. Institutions, including the bank’s employee benefit plan, own about 30% of the stock, and their buying accelerated from Q1 to Q2, providing a tailwind for the market. Only one analyst has a rating tracked by Insidertrades.com, but it’s a Buy with a price target above the current action.
