These stocks are down more than 25% this year, but insiders are buying more
Although the stock market is not able to reverse its slide recently, corporate insiders seem to be becoming more active and this could indicate that outside investors are making good decisions. Professional investors often use insider stock purchases to assess a company. The idea is that insiders may be buying more stock than the general market to indicate confidence in the company’s prospects. With so many stocks falling dramatically over the past year, insiders may be seeing potential. The list below is stocks who are down more than 25% year to date and have seen major insider purchases over the past week, according to InsiderScore.com/Verity and securities filings. SoFi, where CEO Anthony Noto purchased approximately 40,000 shares in the last week, has been one of the most prominent insider purchases. It comes on top of the 39,000 shares purchased on May 13. All together, these purchases total about $550,000. Recent months have seen fintech companies fall out of favour. SoFi stock has fallen more than half this year. The company released the first quarter results too early earlier in this month, causing a huge sell-off. This report revealed a lower-than-expected outlook for the second quarter. E-commerce has also been hard hit. The pandemic saw the group see a significant increase in sales, however consumer spending has shifted away from products and worries about recession and supply chain problems are affecting the stock market. Michael Choe, Wayfair director, believes in a rebound for the industry. Last week, he bought $1.7 million worth of stock. Choe owns about 159,000 shares of Wayfair. That’s a stake that was worth approximately $8 million, according to Monday’s closing. Coinbase, the cryptocurrency exchange whose growth is stalled due to the falling price of bitcoin, might have been the largest purchase. Fred Ehrsam, Director of the company bought 25 million shares in last week’s deal. The purchase was in addition to the $50 million made earlier in this month. Besides the companies mentioned above, some other firms saw significant insider buying. However, these sales were at least partially offset by other employees at the company. HubSpot and Coupang were two examples.