Insiders Step in to Buy These 3 Tanking Stocks

Key Points

• Insiders are buying KKR after the stock has lost over a third of its value as investors assess the risks of the firm's investment portfolio from multiple angles.
• After surging 250% on its IPO day, Figma is trading below its opening price and has seen over $30 million in insider buying.
• Reddit is down almost 50% from its highs, and one insider is buying as the company's financials improve.

Amid precipitous falls in their share prices, several key stocks are flashing bullish signals through a key indicator: insider buying. This includes a leading financial services company, a creative design disruptor, and a social media platform whose shares have soared by more than 300% in two years.

KKR Sees Big Insider Buying as Markets Rock Shares

KKR & Co. NYSE: KKR is the world’s fifth-largest alternative asset management company, controlling more than $700 billion in assets. However, the stock is down more than 35% from its all-time high, as artificial intelligence (AI) disruption fears rip through the market.

Specifically, investors worry that AI could hurt the businesses KKR invested in or loaned to, potentially significantly damaging their returns. This is particularly true of software investments, given the advent of “vibe-coding” and AI lab product releases.

Amid this, KKR insiders are aggressively buying the company’s stock. In 2026, insiders have purchased approximately $40 million worth of shares. Over the same period, MarketBeat has not tracked any insider selling.

This bullishness may come because KKR says its $740 billion in assets under management has only around 7% exposure to software. This is well below its industry, as well as equity and credit indexes, according to the company. Part of its underexposure here was due to the company’s cautiousness in 2021, when many in KKR’s industry overinvested in software businesses.

Still, there are other significant risks outside of software exposure, particularly the “Bermuda Triangle” private credit strategy used by firms like KKR that are worrisome.

FIG Insider Piles in After Fall from Grace

Next up is Figma NYSE: FIG, a digital design company that has been challenging the dominance of Adobe NASDAQ: ADBE.

The stock catapulted 250% on its first day of trading in mid-2025, but has since crashed. Overall, the stock has lost all of its first-day gains and more. It trades near $29 per share, solidly below its $33 IPO price. Notably, fears around AI software disruption have also hit Figma hard.

However, insider Reed Andrew Phillips is stepping in amid the carnage, purchasing over $36 million worth of Figma stock in February. Phillips bought these shares at an average price near $25, around 15% above the stock’s current level. Given the moderate move in Figma shares since then, these buys are likely still a bullish signal for investors.

On the other hand, it may concern investors that Figma’s insider selling in 2026 is near $50 million, exceeding Phillip's purchases. However, essentially all of these sales came under predetermined 10b5-1 plans or contained other mitigating circumstances. This limits the bearish signal that they provide, helping preserve the bullish sentiment surrounding Phillip’s purchases.

Still, as a recently public company, many insiders are looking to gain liquidity by selling their Figma shares, likely creating an overhang on the stock.

RDDT: Revenue, Margins, Buybacks, and Insider Buying Are Up

Discussion platform Reddit NYSE: RDDT has seen its share price go on an absolutely wild ride since going public in early 2024.

The stock shot up 48% in its first day of trading from its IPO price of $34. Shares reached as high as $270 in the second half of 2025. However, the stock has plummeted almost 50% from that level, now trading near $140. Still, shares remain up over 300% from their initial price.

AI disruption fears have likely also affected Reddit shares, with many of the stock’s biggest down days recently coinciding with significant drops in software names. Despite this, the company has generated rapid revenue growth of between 68% and 78% over the last three quarters on the back of its advertising revenue momentum. Reddit also posted its highest-ever adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin last quarter at 45%.

While the company indicated confidence going forward by announcing a new $1 billion buyback authorization, one insider is also providing a bullish signal.

In February, director Sarah Farrell purchased approximately $7.6 million worth of Reddit stock. Notably, Farrell bought these shares at an average price near $148, moderately above the stock’s current level. Reddit has also experienced significant insider selling in 2026. However, similar to Figma, essentially all of these came under 10b5-1 plans.

Evaluating Insider Activity Alongside Broader Fundamental Analysis

Overall, insider purchases at KKR, FIG, and RDDT are all positive signs for these stocks that have taken serious tumbles. However, investors should remember that insider purchases are just one important indicator to consider when evaluating individual stocks.