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Investors closely monitor insider buys, as they can deliver a positive message to shareholders, reflecting overall business confidence.

Of course, many strict rules apply to insiders.

Insiders can’t trade based on material nonpublic information, they must pre-clear all trades, and all transactions of the company’s stock must occur during the Window Period.

In addition, insiders have a longer holding period than most, a critical aspect that investors should be aware of.

Three companies – Caterpillar CAT, PPG Industries PPG, and Hubbell HUBB – have all seen recent insider activity. For those interested in trading like the insiders, let’s take a closer look at each.

Caterpillar

CAT shares have delivered solid gains so far in 2024, gaining 21% compared to the S&P 500’s 10.4% climb. A director recently made a splash following the release of its quarterly results, acquiring 500 shares at a total transaction value of over $168k.

Analysts have positively revised their earnings expectations across the board, undoubtedly a bullish sign.

Image Source: Zacks Investment Research

The company has long displayed a shareholder-friendly nature, holding the ranks of a Dividend Aristocrat. Shares currently yield a solid 1.5% annually paired with a sustainable payout ratio sitting at 24% of the company’s earnings.

Image Source: Zacks Investment Research

PPG Industries

PPG shares have been notably strong in May so far, gaining nearly 6% and outperforming relative to the S&P 500. The CEO recently swooped in for a purchase, buying roughly 2k shares at a total cost of just below $275k.

The company’s current year outlook has shifted positively over the last year, with the $8.44 Zacks Consensus EPS estimate up 7% and suggesting 10% year-over-year growth.

Image Source: Zacks Investment Research

Hubbell

HUBB shares have delivered a strong performance in 2024, up nearly 22% and outperforming relative to the S&P 500. A director recently acquired 500 shares at a total transaction value of just under $190k.

Like those above, the company has been committed to increasingly rewarding shareholders, carrying a 7.7% five-year annualized dividend growth rate. Shares currently yield 1.2% annually paired with a sustainable payout ratio sitting at 32% of the company’s earnings.

Image Source: Zacks Investment Research

Shares faced pressure post-earnings following its latest release before quickly reversing course, with HUBB posting a 1.7% beat relative to the Zacks Consensus EPS estimate and posting sales modestly ahead of expectations.

Bottom Line

Many investors closely monitor insider buys, as they can provide a high level of confidence and conviction.

And recently, all three stocks above – Caterpillar CAT, PPG Industries PPG, and Hubbell HUBB – have seen recent insider activity.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.