Three major headwinds have been combining to buffet the markets – persistently high inflation, the Fed’s rising interest rates in its ongoing battle to tame it, and the increasing worries that a recession is around the corner.
In such an unpredictable market environment, investors need to find some clear and reliable sign to indicate just which stocks are the most attractive choices to weather the volatile conditions. One of the clearest such signals comes from the corporate insiders, company officers in high posts – CEOs, CFOs, Board members – whose positions give them an inside view of company ops, along with more detailed knowledge to make predictions on their own firms’ stocks.
Being human, like the rest of us, these insiders use that knowledge when they trade their own shares – and to keep the playing field level, regulatory authorities require that they publish their insider trades on a timely basis. And when the insiders start buying up their stock in million-dollar lots, investors can track that, and make decisions based on the data.
Using the Insiders’ Hot Stocks tool from TipRanks, we have found two stocks that are showing just such large insider buys – informative buys in the million-dollar range. We can take a dive into the data, and the analyst commentary, to get a clearer picture on why they are loading up right now.
Masimo Corporation (MASI)
First up is Masimo Corporation, a healthcare company that designs, manufactures, and markets non-invasive medical monitoring technologies, with a line of devices for home monitoring and hospital automation. The company’s core products focus on pulse oximetry, the non-invasive monitoring of a patient’s blood oxygen saturation levels. Masimo is based in Irvine, California, and its Masimo SET (signal extraction technology) helps monitor over 200 million patients worldwide.
Shares in Masimo are down this year, by approximately 51%, but by far the bulk of that loss came in February, when news broke that the company had spent over $1 billion on the acquisition of Sound United, a non-healthcare…