When stocks fall in price, it’s frequently a signal for renewed investor interest. After all, low share prices offer a chance to live up to the old market advice, ‘buy low and sell high.’ What investors need is some way to tell the underlying reasons for a drop in share price, whether it bodes well or ill for the stock.
One of the best stock signals comes from corporate insiders, the company officers who hold positions of high responsibility – to their Boards, and to their peers, and to their shareholders and customers – for bringing in the maximum returns. Their main focus is on keeping the company healthy, and their positions give them access to knowledge that the general public just hasn’t got. And that knowledge will inform their trading decisions when they trade their company’s stock.
Investors should keep on the lookout for informative trades by the insiders, both buys and sells, especially when the stock looks beaten down. Just because a company’s shares have slipped in price doesn’t necessarily mean that the stock is unsound, or should be avoided as an investment – and the insiders are in the best place to know that for certain. So, when retail investors see insiders buying large in a stock that’s trading at a low point, that’s a signal to heed.
We’ll heed that signal. Using the TipRanks Insiders’ Hot Stocks tool, we’ve looked up two stocks that show the combination of a beaten down price, a Strong Buy consensus rating from the analyst community, plenty of upside potential, and recent informative buys from the insiders. Here are the details.
Azenta (AZTA)
We’ll start with a life sciences company, Azenta. This firm provides a necessary set of services and products for the biotech industry. These include a ‘full suite’ of solutions for cold-chain sample management, as well as genomic services, all used in vital research areas such as advanced cell therapies, clinical research, and drug development. Azenta operates as a global provider for top business customers in the academic, biotech, healthcare, and pharmaceutical…
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