Free Trial

Top 4 Stocks With Notable Insider Buying

Dollar Tree Discount Store

Key Points

  • Insider buying often signals executives' confidence in their company's future, potentially indicating a bullish outlook for investors.
  • Over the previous twelve months, Dollar Tree, down 20% YTD, had insiders buy $99.83 million in stock. Talos Energy, down 25% YTD, saw one insider buy $242 million.
  • STAAR Surgical, up 30% YTD, had insiders purchase $44.06 million in stock. Despite bearish analyst views, RXO, down 11% YTD, saw $60.80 million in insider buys.
  • 5 stocks we like better than Talos Energy

Insider buying, where company executives or board members purchase shares of their own company, can be a significant indicator for investors. It often suggests that those closest to the company's operations have confidence in its future performance. While it's far from a guarantee of success for investors, it might act as a bullish signal and metric for potential investors. 

So, let's take a look at four stocks that have seen substantial insider buying recently.

Insider Buying Signals Confidence in Dollar Tree’s Future

Dollar Tree Today

Dollar Tree, Inc. stock logo
DLTRDLTR 90-day performance
Dollar Tree
-3.08 (-2.88%)
(As of 03:07 PM ET)
52-Week Range
Price Target

Dollar Tree NASDAQ: DLTR operates retail discount stores under the Dollar Tree and Family Dollar brands. Despite a challenging year with shares down over 20% year-to-date, insider buying has been relentless recently. 

Over the last twelve months, three insiders have purchased nearly $99.83 million worth of stock, with only $347,868.01 in sales during the same period. This brings total insider ownership to 6.8%. Analysts remain bullish on the stock, with a moderate buy rating and a consensus price target indicating close to 30% upside.

However, a worrying sign for investors is that the stock remains in a firm downtrend, almost 30% off its 52-week high. The company recently reported earnings on June 4 and failed to beat expectations, further weighing on the stock's performance. The company reported an EPS of $1.43, matching analysts' estimates. The company's revenue for the quarter was $7.63 billion, which also met expectations and was up just 4.2% year-over-year.

Talos Energy’s Buy Rating: What Investors Should Know

Talos Energy Today

Talos Energy Inc. stock logo
TALOTALO 90-day performance
Talos Energy
-0.10 (-0.85%)
(As of 03:08 PM ET)
52-Week Range
P/E Ratio
Price Target

Talos Energy NYSE: TALO explores and produces oil, natural gas, and natural gas liquids in the U.S. and Mexico. Like Dollar Tree, its stock is in bear market territory, down nearly 25% year-to-date. 

However, insider activity tells a different story. One insider has purchased a staggering $242 million in stock over the last twelve months, with no sales recorded. Based on eight analyst ratings, the stock has a buy rating with a price target predicting an impressive 94% upside. While analysts forecast an upside, the stock has a fair share of skeptics. The short interest is notable, with 5.72% of the float sold short.

STAAR Surgical’s Remarkable YTD Rise and Insider Activity

STAAR Surgical Today

STAAR Surgical stock logo
STAASTAA 90-day performance
STAAR Surgical
-0.22 (-0.53%)
(As of 03:08 PM ET)
52-Week Range
P/E Ratio
Price Target

STAAR Surgical Company NASDAQ: STAA designs, develops, manufactures, markets, and sells implantable eye lenses. Unlike the other stocks mentioned, STAAR has been a strong performer this year, with shares up nearly 30% year-to-date. 

Over the past twelve months, 19 insider purchases totaled $44.06 million in stock, with no insider sales. The stock has a hold rating based on ten analyst ratings, with a price target forecasting just over 16% upside.

Significant Insider Buying in RXO Despite Bearish Sentiment

RXO Today

RXO, Inc. stock logo
RXORXO 90-day performance
-0.47 (-1.58%)
(As of 03:08 PM ET)
52-Week Range
Price Target

RXO NYSE: RXO provides complete truckload freight transportation brokering services and managed transportation, last mile, and freight forwarding services. The stock is in correction territory, down just over 11% year-to-date, and is in a multi-year consolidation phase. 

Insider buying has been notably bullish despite the stock's bearish sentiment. With a consensus rating of reduce and a price target forecasting just over 2% downside, 16 insiders have purchased $60.80 million worth of stock over the last twelve months, with no insider sales. However, the stock has a short interest of nearly 4%, representing almost 4.5 million shares sold short.

The Bottom Line: Weighing Insider Buying Against Market Conditions

While insider buying is a positive signal, considering it alongside other factors, such as analyst ratings, overall market conditions, and especially company fundamentals, is crucial. Dollar Tree and Talos Energy present interesting cases where substantial insider buying contrasts with year-to-date stock performance, suggesting a potential for an upside or a bounce in the short term. STAAR Surgical's insider activity aligns with its strong performance, while RXO's significant insider buying stands against bearish analyst sentiment and a challenging stock performance. Investors should weigh these factors carefully when considering these stocks for their portfolios.

→ Former Hedge Fund Legend Slams Wall Street (From Stansberry Research) (Ad)

Should you invest $1,000 in Talos Energy right now?

Before you consider Talos Energy, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Talos Energy wasn't on the list.

While Talos Energy currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

7 Stocks to Own Before the 2024 Election Cover

Looking to avoid the hassle of mudslinging, volatility, and uncertainty? You'd need to be out of the market, which isn’t viable. So where should investors put their money? Find out with this report.

Get This Free Report
Ryan Hasson
About The Author

Ryan Hasson

Contributing Author

Technical Analysis, Momentum Trading, Risk Management

Like this article? Share it with a colleague.

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
2.4817 of 5 stars
2.48 / 5 stars
Dollar Tree (DLTR)
4.6387 of 5 stars
4.64 / 5 stars
$104.21-2.6%N/A-22.70Moderate Buy$141.55
STAAR Surgical (STAA)
4.5709 of 5 stars
4.57 / 5 stars
Talos Energy (TALO)
3.9154 of 5 stars
3.92 / 5 stars
Compare These Stocks  Add These Stocks to My Watchlist 

Featured Articles and Offers

4 Best Tech Stocks to Own in 2024

4 Best Tech Stocks to Own in 2024

In this video, we explore the recent selloff and rotation of investments from NVDA to other Magnificent 7 stocks. Our analysts highlight four standout stocks—Amazon, Apple, Meta, and Alphabet.

Related Videos

Buy or Bail? Stock Upgrades and Downgrades
Skip Nvidia: Finding AI Stocks Beyond the Buzz
Alphabet Stock is Surging

Stock Lists

All Stock Lists

Investing Tools

Calendars and Tools

Search Headlines