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Insiders Who Find Their Stock To Be Undervalued - Weekly Update (04/24/20 - 04/30/20)



  • Picking the right stocks in this market environment has become increasingly important. Following insider purchases can help investors to outperform the market significantly.
  • Each week, I provide two lists of insider purchases based on purchase value and market cap.
  • Also I suggest a favourite pick each week. This week, I like Abbvie based on its shareholder value creation, high dividend yield,  long term growth opportunities and low valuation.

Over the last week, the S&P500 gained 4.10% on the reopening of many countries and some states of the USA their economies and stronger than anticipated earnings from tech giants Alphabet (GOOGL) and Microsoft (MSFT). Also, the FED announced to keep interest rates at 0% until the economy recovers and keep providing unlimited liquidity. It is a market of stocks, not a stock market, in which it is getting increasingly important to pick the right stocks. Following insider purchases can help with that as there is ample literature available which proves that these stocks outperform the market significantly, as shown in the list below. My own academic research indicates that insiders trades may reach an annual abnormal return of up to 13.25%. In this article, I want to give an update of insider purchases over the last week by providing two lists based on the highest value purchased and highest market cap and discussing them quickly. Moreover, I will thoroughly discuss my favourite pick of this week. By these type of articles, I try to provide valuable information to readers on how to outperform the market.

(Source: Robbe Delaet based on papers included)

List of highest market cap insider purchases

In this section, I will provide a list of the 10 insider purchases with the highest market capitalisation:

  • AT&T's (T) director Geoffrey Y Yang purchased $198K worth of stocks last week, following the recent purchase of director Luczo. AT&T is multinational which provides telecommunication, media, and technology services worldwide. AT&T believes that with its newly introduced streaming service, it will approach people who want to both streaming apps and traditional pay-TV services. AT&T is attractively valued at a FCF yield of 11.73% (based on 2019 numbers) and a dividend yield of approximately 7%. The company also has a very stable cash flow stream, which

This article was written by

Robbe Delaet profile picture
Build a portfolio of winning stocks via our unique insider strategy

Voor Nederlandstalige beleggers - bezoek beleggersuniversity.com als je wil uitgroeien tot een succesvolle belegger

Founder of Insider Opportunities / A new way of investing (insiders+algos) with 43.6% annualized returns since 2010 / Made hundreds of investors successful and confident in this challenging market environment

During my Master of Business Administration at the University of Ghent (Belgium), I got passionated by finance. When writing my master's thesis I got attracted by the under-appreciated power of the insider investment strategy.

The theory is simple: by following insider (CEOs, CFOs, board members...) purchases, well-respected researchers have proven that you can outperform the market significantly. That's because this "smart money" knows better than anyone else when their stock is undervalued.

But adopting it in your investment practices is not easy: there are 850 purchases reported by the SEC each month, off which only a small fraction is valuable to follow up. As I enjoy challenges, I decided to dedicate my life into building a strategy around this very promising theory.

After years of empirical research, I discovered a revolutionary strategy based on insiders and algorithms which generated 47.2% annual returns since 2010 (3x the S&P 500). My IO Golden Value, Growth and Biotech algorithms pick out the winning insider purchases (on average 6 per month) based on fundamentals and valuations.

I understood this unique strategy could be extremely valuable to investors like you, enhancing returns and strengthening one's confidence in the market. To start improving investors' wealth generation, I decided to find Insider Opportunities in 2020.

Click here to discover Insider Opportunities 14 days for FREE.

By joining our community, you'll have an edge compared to other investors to find undiscovered, undervalued stocks. You'll get exclusive access to our daily Insider at Breakfast articles, outperforming portfolios, weekly market updates, group chat with other investors, and much more.

I'm always happy to talk with other like-minded investors and help them out. Don't hesitate to contact me any time!

Yours sincerely, Robbe

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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