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3 stocks, signs of strong domestic buying
For an individual investor to beat the market, you need an advantage. Investment strategies come in different forms and you can rely on several factors to achieve the ultimate goal of solid returns. Whether following analyst reviews, the next catalysts or recognizing the latest trends in market movement. There is another option: follow the sign of those who know – the company’s internal staff. These are the directors of the company whose positions give them access to often privileged information about business and finance plans and the experience necessary to translate them into smart stock negotiations. And even better – they are not totally free actors. Being accountable to shareholders and boards of directors for the company’s profits, these insiders cannot use their internal knowledge for selfish purposes. Which means that tracking your stock trades, especially from your own companies, can be a viable investment strategy. Fortunately, federal regulations require insiders to make their internal negotiations public – to maintain the level of play. To make this research easier, the TipRanks Insiders’ Hot Stocks tool starts the work on its feet – identifying actions that become informational movements by insiders, highlighting several common strategies used by insiders and collecting data in one place. We chose three actions with recent informative purchases to show you how the data works for you. Calix, Inc. (CALX) The first action we are seeing is Calix, a cloud computing technology company. Calix follows a subscription model, offering software, systems, platforms, services and cloud solutions for the communications industry. Calix products provide customers with real-time data and insights about their end users, enabling them to more efficiently monetize their business and customer interactions. Calix, like many high-tech software platform companies, offers a system that can streamline operations – a vital advantage in today’s expanding remote working climate. The company’s revenues reflect the growth-oriented environment: revenue grew year on year in each quarter of 2020, with the most recent, Q4, reaching $ 170 million, the best of the past two years. Earnings per share, at 37 cents, rose 15% over the third quarter and was positive for the second consecutive quarter – a feat that the company had failed to achieve in the past two years. With such a track record, it is no wonder that this stock is having an internal purchase. The most recent purchase is from board member Donald Listwin, who bought 20,000 shares, disbursing almost $ 715,000. 5-star analyst Paul Silverstein, from Cowen, notes that Calix adopted an age-old strategy to overcome predictions: “4Q20 fuels our view that the power of short- and long-term earnings and cash flow continue to be significantly greater than that Street modeled … we respectfully observed that CALX established a clear pattern of ownership and admirably a highly conservative stance on risk assessment and, at the same time, promising little and delivering in excess. ”Silverstein clearly likes Calix’s approach and evaluates stocks as Outperform (ie, Purchase). In addition, the analyst gives the stock a target price of $ 45, which implies a 23% increase in one year. (To see Silverstein’s history, click here) What do the rest of the Street think? Looking at the breakdown of consensus, the opinions of other analysts are more dispersed. 3 purchases and 2 retentions add up to a moderate purchase consensus. In addition, the average price target of $ 37.40 indicates a modest upside compared to current levels. (See CALX stock analysis at TipRanks) DXC Technology Company (DXC) Founded in 2017, partly as a spin-off from Hewlett Packard Enterprises, DXC is a leader in the business-to-business (B2B) IT field. The company’s products enable global companies to run their critical systems and operations efficiently, safely and scalably at various levels. DXC’s enterprise technology improves performance and competitiveness and therefore the customer experience. The company has seen a drop in revenue over the past two years. It saw $ 19.5 billion in revenue for calendar year 2020, but is on track, reaching ~ $ 18 billion for fiscal year 2021. The most recent reported quarter, fiscal 3Q21, showed $ 4.29 billion in the profit line, falling 14.6% year on year. However, the profit of $ 4.29 was much stronger than the losses of 80 and 96 cents reported in the previous two quarters. Despite the drop in revenues, the company maintained its dividend, paying 21 cents per common share last year, for a current yield of 3.2%. Looking at the recent insider trading, we see that Council member Raul Fernandez made two purchases this month, buying 11,443. Fernandez paid nearly $ 300.00 for the new shares. In a comprehensive review of DXC, RBC analyst Daniel Perlin, rated 5 stars on TipRanks, writes: “We believe the FQ3 / 21 results provided evidence that the transformation of DXC is progressing. In terms of customer focus, we noted that revenue in the quarter increased by 3.1% t / t and 1.7% … the second consecutive quarter of sequential improvement … ”Perlin continued to list several reasons for his optimistic thesis:“ 1) successful management in its strategic plan and meeting its goals for FY22; 2) DXC evolving into a digital player / new technologies at scale, which should help offset the decline in traditional solutions; and 3) the evaluation is attractive in relation to peers, especially given the growth potential for the synergy goals. ”Perlin uses these comments to support an Outperform rating (ie Buy) on DXC and a target price of $ 38 which indicates room for a robust 46% increase in the next 12 months. (To see Perlin’s history, click here) Wall Street analysts are having a number of views on this action, as shown by the 10 recent reviews – which include 4 purchases and 6 holds. Taken together, it results in a moderate purchase analyst consensus rating. The average target price of $ 31 implies an increase of 19% in one year over the current trading price of $ 26.06. (See DXC stock analysis at TipRanks) Northern Oil and Gas (NOG) Last but not least, Northern Oil and Gas, a highly located hydrocarbon explorer, with assets in the states of Montana and North Dakota, specifically in the Williston Basin. NOG has a large acreage in the region, holding the land titles in which the developers will drill and complete oil and gas wells. This year, NOG took two actions to increase its operating capital. The second move was announced on February 8 – an offer of notes senior to 8.125%, due in 2028. The proceeds will be used to pay off various outstanding debts and interest obligations and then to help finance the acquisition new natural gas assets. The new land acquisitions targeted are in the Appalachian region and will mark a real expansion for the North of Oil and Gas. The first capital movement, however, is more interesting for this article. On February 4, the company announced that it was placing 12.5 million common shares on the market, at a price of $ 9.75 per share. The capital raised will be used first to finance the purchase of land in the Appalachian Basin and then to pay off debts and finance general operations – these are the standard conditions in this type of capital movement. Stuart Lasher, a member of the company’s board, bought 25,000 shares of NOG just days after the announcement of the public offering of shares. The recent block of shares was acquired for $ 243,750. Scott Hanold, from RBC, is clearly optimistic about the expansion of this company to a new region, writing: “The acquisition of NOG in the Appalachians was strategic, accelerating the reduction of leverage, cleaning the balance sheet and diversifying its assets and commodity footprints . The move to the Marcellus gas game reinforces management’s ability to focus on generating the best economic returns … ”Hanold classifies NOG as Outperform (ie purchase), and its $ 15 price target suggests that the stock there is room for growth of 37% this year. (To see Hanold’s history, click here) With 4 recent reviews, all purchases, the strong buy analyst’s consensus rating here is unanimous. Northern shares are quoted at $ 10.99 and have an average price target of $ 14.75, indicating that the stock has a 34% appreciation potential in one year. (See the NOG stock analysis on TipRanks) To find good ideas for stock trading with attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that brings together all TipRanks stock insights. Disclaimer: The opinions expressed in this article are exclusively those of the analysts presented. The content should be used for informational purposes only. It is very important to do your own analysis before making any investments.