It’s always important to know what company insiders are doing.
After all, who knows the company better than an insider – the CEO, CFO, COO, officers, employees, and directors?
If they’re buying a sizable number of shares, it’s often a good idea to start looking into why and perhaps follow them into the stock. That’s because they’re typically privy to information on new products, competition, and the operating environment of the firm.
Of course, it’s not always wise to base your own buying decisions solely on the actions of insiders, but it doesn’t hurt to see what an insider may be up to.
Here are three small cap stocks with solid insider buying.
Inseego Corporation (INSG)
Inseego Corp. engages in the design and development of mobile, Internet of Things (IoT), and cloud solutions for large enterprise verticals, service providers, and small and medium-sized businesses worldwide. In May 2019, Chairman and CEO, Dan Mondor bought 2,588 shares for $8,255. CFO Stephen M. Smith bought 2,745 shares for $8,756.
Avanos Medical Inc. (AVNS)
Avanos Medical, Inc. operates as a medical technology company that focuses on delivering medical device solutions to improve patients’ quality of life worldwide. It provides a portfolio of products focuses on respiratory and digestive health; pain management solutions; and minimally invasive interventional pain therapies, closed airway suction systems, and enteral feeding tubes.
On May 30, 2019, the company’s CEO Joseph Fralin bought 3,500 shares at an average price of $39.95 for nearly $140,000.
Athenex, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of various therapies for the treatment of cancer and related conditions in North America and Asia. In recent days, the stock rallied on positive preliminary data from a Phase I study of its KX2-391 candidate ointment for patients with psoriasis. A director bought nearly $40,000 of stock in early June 2019. A beneficial owner added nearly $1.3 million of stock in May 2019. And the CEO added over $500,000 to holdings in March 2019.