Insidertrades.com offers a wealth of information about insider buying. This article looks at April's three hottest insider buys, ranked by the number of buys, the number of buyers, and the number of purchases. In all cases, investors have opportunities; the question is how they may fit into a portfolio.
Tile Shop is the Most Actively Bought Stock in April
[content-module:CompanyOverview|NASDAQ:TTSH]Tile Shop (NASDAQ: TTSH) is the most activity-bought stock in April, with twenty-five total purchases for the trailing 90-day period. Among the pertinent details is that a single entity made these purchases. That entity is Fund 1 Investment. Fund 1 Investments is a holding company for Pleasant Lake Onshore Feeder Fund, a hedge fund based in Puerto Rico. The PLP Onshore Feeder Fund represents nearly 150 investors and $1 billion in funds. It is a 10% stockholder and a top-5 largest single holder.
Tile Shop is a source of man-made and natural tiles. The company experienced a contraction in business over the last year but is tracking to return to growth this year. The two largest shareholders are P. Jacullo and P. Kamin, directors of the company, who own roughly 35% between them. Institutional activity is also solid. Institutions own about 36% of the stock and have been buying for three consecutive quarters. Shares of TTSH have trended higher since mid-2022 and are set to retest the multi-year high. The catalyst could be FQ1 earnings, set for release next month.
UL Solutions Insiders Buy After the IPO
[content-module:CompanyOverview|NYSE:ULS]UL Solutions (NYSE: ULS), held by UL Standards & Engagement, was IPO’d in early April with little fanfare. The IPO resulted in volatility and a lower price point that insiders took advantage of. The company ranks in the number one position for the number of insiders buying, with six purchasing on April 16th, just before the offering window closed. Insider ownership is light at 0.3% but offset by substantial institutional and corporate ownership, which runs closer to 80%.
Trends supporting the business before the spin-off include growth and widening margin. The company is well-positioned as a safety and testing sciences player and is expected to continue growing this year. The healthy balance sheet carries little leverage, so cash flow is unimpeded. The IPO raised more than $800 million in capital that can be used to improve shareholder value. Investors in this stock may expect to see it invest in growth, repurchase shares, or start a dividend distribution over the coming years. Potential avenues for growth include new and developing technologies that will enhance service capability or drive demand for services.
Berkshire Hathaway Buys … Formula One Group
[content-module:CompanyOverview|NASDAQ:FWONK]Berkshire Hathaway (NYSE: BRK-A) makes headlines for many reasons, but for some reason, its interest in Formula One Group (NASDAQ: FWONK) slips under the radar. It is the most active buyer of the stock regarding insiders and has made fifteen purchases in the last three months. Berkshire owns about 4% of the company and may continue; FWONK (the series C shares, which trade at a higher volume than Series A (NASDAQ: FWONA)) is the most bought by insiders in terms of dollar value. Analysts rate FWONK at Moderate Buy and see it advancing about 20% at the consensus.
Shares of Formula One Group have been trending higher and show favorable technicals. The market is moving up from support at the 30-day and 150-day EMAs with bullish MACD and stochastic. The market should be able to rise to the next critical resistance target, which is near $74. A move above $74 would be bullish and may be catalyzed by the upcoming earnings report. The company is expected to grow its top line by 50%, impressive in any sector.
