Alpha Buying: In a Market Starved for Direction, Insider Moves Speak Volumes

Slowly but surely, we are seeing insiders sneak back into the markets to take advantage of selected stocks.

Uncertainty and volatility have been the watchwords of recent weeks, and insiders have been somewhat reluctant to get involved. The reception to the Trump administration’s tariff and trade plans has been less than well received around the world, and the markets have not reacted well.

We still do not see insider buying at levels that look anything like major market bottoms, but there are some signs of life in positive insider activity in the last week.

Shares of Tesla TSLA have been the poster child of the market selloff. The stock was one of the Magnificent Seven stocks that have powered much of the advance of the last several years and a major beneficiary of the political popularity of electric vehicles.

That ended when Elon Musk took a position with the carbon-fuel-friendly Trump administration.

Sales have slowed, and some highly unintelligent individuals have resorted to burning cars and attacking dealerships to express their displeasure with Elon. Tesla shares have also been attacked, and even after some recovery off the lows, is more than 40% off the highs of last year.

Insiders have not been all that enthusiastic either, as they continued to take profits in the stock by selling tens of millions of dollars’ worth of stock.

Last week, Director Joseph Gebbia, a co-founder of Airbnb ABNB, was the first insider to step up in quite some time with an open market purchase. Gebbia, who is also part of the Department of Government Efficiency efforts, purchased over $1 million worth of stock last month.

Although I am a fan of Elon and think Tesla shares are grossly overvalued at more than 100 times earnings and 106 times the cash produced by the business, you have to keep in mind that Tesla is an amazing business. It has been at the center of just about every high-stakes bet on EV adoption, AI, autonomy, and renewable energy infrastructure for over a decade.

The stock doesn’t trade on earnings or fundamentals so much as on narrative torque and sheer volatility. It may not be a value stock, but if you are looking for market momentum, political cycles, or speculative fever, it’s one of the most important barometers out there.

Neal Goldman may not be a household name like Elon Musk, but a review of his resume shows that he knows energy companies and opportunities in out-of-favor industries.

He currently serves on the board of Weatherford International, where he plays a key role across audit, compensation, and governance committees. Goldman also chairs the boards of Talos Energy and Charles & Colvard, while leading SAGE Capital Investments, a firm specializing in strategic advisory and restructuring.

His deep background in distressed investing and governance has placed him at the helm of numerous boards, including Redbox, Toys R Us, and Mallinckrodt.

A graduate of the University of Michigan and the University of Illinois MBA program, Goldman recently put more skin in the game with a $500,000 insider purchase of Weatherford shares, further signaling his confidence in the turnaround story he’s helping shape.

He has been a pivotal figure in Weatherford International’s strategic evolution since joining its Board of Directors in December 2019, following the company’s emergence from Chapter 11 restructuring.

Weatherford International is a major global oilfield services provider, delivering drilling, evaluation, completion, production, and intervention services to energy companies across roughly 75 countries. Headquartered in Houston, Texas, and legally domiciled in Ireland, the company has long been a familiar name in the oil patch, known for both its technical capabilities and wide geographic reach.

As of 2024, Weatherford employed approximately 19,000 people worldwide and continues to serve as a critical link in the global energy supply chain.

However, Weatherford’s journey hasn’t been smooth.

In July 2019, burdened by a staggering $7.4 billion in unsecured debt and years of operational missteps, the company filed for Chapter 11 bankruptcy protection in the Southern District of Texas.

Its restructuring plan, prepackaged and backed by major creditors, resulted in unsecured noteholders exchanging their claims for 99% of the reorganized equity and $1.25 billion in new unsecured notes.

Weatherford successfully emerged from bankruptcy on December 13, 2019, having slashed its funded debt by over $6 billion and secured $2.6 billion in new exit financing, restoring liquidity and stabilizing operations.

Since emerging from bankruptcy, Weatherford has been steadily rebuilding. The stock is down over 60% and will likely be stagnant at best until oil and gas prices improve.

However, when the current political madness subsides, and basic supply and demand take over the oil and gas markets again, this stock could quickly cover the lost ground, leading to huge gains for Mr. Goldman and those who follow his lead.