TipRanks
2 stocks, signs of strong domestic buying
Tracking insider stock purchases can be a viable investment strategy. Corporate insiders – the company’s directors and board members – are naturally positioned to be on the inside, to know how the company’s policies and performance will affect stock prices. They can use this knowledge to inform their own stock purchases – but not unfairly. By law, they must publicly disclose their own shareholdings, and the general public can learn from these purchases and sales. Internal movements can be informative or non-informative. The latter are simple changes in portfolio holdings, usually not of a large magnitude, made to adjust a percentage of ownership or comply with tax regulations. The informational movements, however, are different. These are large purchases and sales – and when an insider, or several insiders, begin to make informative participation moves, market watchers should take note. These are signs that something big may be in store. TipRanks follows insider negotiations, making use of publicly published stock movements to track them. The Insiders Hot Stocks page provides information on what stocks market insiders are buying, so you can make informed purchases. We chose two actions with recent informational purchases to show you how the data works for you. Brown & Brown (BRO) Brown & Brown is an insurance company that does more than $ 2.3 billion in annual deals. The company is headquartered in Florida, has a market capitalization of $ 12.4 billion, has 300 offices and is the fifth largest insurance broker in the United States. Brown & Brown operates in the risk management area, offering insurance products to clients of all sizes: government agencies, professional organizations, businesses, corporations, families and individuals. Brown & Brown saw its revenues and earnings rise year after year during the corona crisis – which makes sense, as a stable and reliable insurer should expect business growth in difficult times. The 4Q20 results showed revenue of $ 642.1 million, an increase of 10.9% in the annual comparison. Profit was 34 cents per share, an increase of 25% yoy. On the insider’s front, Board Member James Hay paid $ 433,750 for the purchase of 10,000 shares on January 29. This brings the insider’s feeling here into positive territory. Truist analyst Mark Hughes, rated 5 stars by TipRanks, sees Brown & Brown as a solid choice for investors interested in the insurance industry. “The company is generating solid organic revenue growth, margins are expected to remain stable this year and M&A activity has been healthy, all of which should lead to a solid expansion of revenue and revenue in the coming periods. We believe that BRO’s shares remain a good way for investors to expose themselves to the recovering economy and set P&C prices, ”said Hughes. In line with his optimistic approach, Hughes values BRO a Buy, and its target price of $ 55 indicates confidence in ~ 25% growth over the next 12 months. (To see Hughes’ history, click here) Do the rest of the Street agree? It turns out that the analysts’ consensus is more confused. Divided almost in half, 4 purchase ratings and 5 retentions have been assigned in the past three months, giving BRO’s moderate purchase status. With an average price target of $ 51.44, the potential 12-month gain reaches 17%. (See BRO’s stock analysis at TipRanks) Crown Castle (CCI) The second prime choice we are considering, Crown Castle, is a real estate investment fund with a twist. The company owns and manages the communications infrastructure, specifically, the locations of towers and transmitters so important for cellular networks. Crown Castle’s portfolio of properties includes more than 40,000 towers, 70,000 small cell sites and 80,000 miles of connecting fiber optic cables. The launch of the new 5G wireless network was a boon for the Crown Castle model last year. Crown Castle’s revenues remained stable until 2020, ranging from $ 1.4 to $ 1.49 billion, with third and fourth quarter results at $ 1.49 billion. For the fourth quarter, it was a gain of 11% in the annual comparison. For 2020 as a whole, the JRC reported $ 5.3 billion, an increase of 3.8% year-on-year. Crown Castle’s position was solid enough for the company to increase its dividend payout by more than 10% in December. The new payment, $ 1.33 per common share, gives an annual payment of $ 5.32 and a yield of 3.2%. Turning to privileged trading, we found that Kevin Stephens, one of the company’s directors, paid $ 328,300 for a block of 2,000 shares. Stephens now owns $ 671,000 in CCI; this recent purchase almost doubled its total share. Cowen’s 5-star analyst Colby Synesael takes a highly optimistic stance at Crown Castle. He notes that CCI has “a new agreement with Verizon in which the operator has agreed to rent 15K small cells from Crown that will be installed over the next four years …” The analyst added, “[We] estimate the average ARPU is $ 500 / month. (with a 1.5% escalator), suggesting an initial annualized value of ~ $ 90 million. The deal represents the company’s largest small cell business in its history … the deal raises Crown’s small cell backlog to ~ 30K, from previously ~ 20K. ”Synesael’s confidence is clear in its Outperform rating (ie, Purchase) of the stock. Its $ 197 target price suggests a 21% increase in one year. (To see Synesael’s history, click here) In general, Wall Street analysts like what they see here. The CCI’s strong purchase consensus rating is based on 8 recent reviews, divided into 7 purchases and a single wait. The average target price of the CCI is $ 177.25, which implies a 9% increase from the current share price of $ 177.25. (See CCI’s stock analysis on TipRanks) To find good ideas for stock trading with compelling 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 is intended to be used for informational purposes only. It is very important to do your own analysis before making any investments.