Investors closely monitor insider buys. But who are ‘insiders’?
An insider is defined by Section 16 of the Security Exchange Act as an officer, director, 10% stockholder, or anyone who possesses information because of their relationship with the company.
Of course, many strict rules apply to insiders. Notably, they have a longer holding period than most, a critical aspect that investors should be aware of.
The Rise of Insider Activity
Three companies – Post Holdings, Casey’s General Stores, and Aon – have all seen recent insider activity. For those interested in trading like the insiders, let’s take a closer look at each.
Post Holdings: A Strong Stand
Post Holdings is a consumer-packaged goods holding company involved in the production of center-of-the-store, refrigerated, foodservice, food ingredient and convenient nutrition product categories and the private brand food category.
The stock is currently a Zacks Rank #1 (Strong Buy), with earnings expectations moving higher across nearly all timeframes. A director recently scooped up 1000 POST shares, with the total transaction totaling roughly $105k.
A Look at Casey’s
Casey’s General Stores operates convenience stores under the Casey’s and Casey’s General Store names in many midwestern states. A director purchased 725 CASY shares near the beginning of 2024, with the transaction totaling nearly $200k.
Aon: The Big Splash
Aon is a multinational corporation offering risk management services, insurance and reinsurance brokerage, human resource consulting, and outsourcing services worldwide. A director recently made a big splash, acquiring 50k shares at a total transaction value of roughly $7.5 million.
Deciphering the Market Movements
Many investors closely monitor insider buys, as they can provide a high level of confidence. After all, if an insider didn’t believe in the company’s future pathway, why would they buy?
And all three stocks above – Post Holdings, Casey’s General Stores, and Aon – have seen recent insider activity.
Embedded charts give investors a peek into the ongoing progress of these companies as detailed by the Zacks Investment Research. Market aficionados across the board might consider keeping a keen eye on these tickers to remain informed and poised for potential opportunities. Reference Here