Why Are Company Insiders Buying These 7 S&P 500 Stocks?

Most investors are likely familiar with the adage, "actions speak louder than words." That saying certainly applies to the executives and other corporate insiders buying and selling shares of their own company's stock.

It's part of an executive's job to paint a rosy public picture of the future of a company, but a CEO's bullish words may not be an accurate reflection of how he or she truly feels about a stock. However, if company insiders are backing up positive words with insider buying, it can be a confirming indication that management is truly bullish enough about the future to put their own skin in the game.

Here are seven stocks that Bank of America analysts recommend that have seen insider ownership increase in the last year.

Incyte Corporation INCY

Incyte develops and commercializes oncology therapies.

Analyst Tazeen Ahmad says Jakafi, a medication used to treat certain bone marrow disorders, and additional revenue streams provide a floor under Incyte's valuation, and the company's late-stage dermatology program could be a near-term growth catalyst. In the longer term, Ahmad says Incyte's early stage pipeline is also encouraging. Ahmad says she is particularly bullish on Incyte's potential opportunities in treatment of the skin condition vitiligo. Incyte shares are down 12% in the past year, but insider ownership is up 235.2% in that time.

Bank of America has a Buy rating and $90 price target for INCY stock.

Twitter Inc TWTR

Twitter is one of the world's largest social media platforms.

Analyst Justin Post says Twitter's investments in mobile and video content could boost engagement and ultimately make Twitter the leading online platform for real-time multimedia distribution. Post says Twitter still has significant opportunities to increase penetration in total users, engagement, and advertising. He says Twitter shares are attractively valued even if the company falls slightly short of 2023 revenue growth goals. Twitter shares are down more than 51% in the past year, but insider ownership is up 179.8% in that time.

Bank of America has a Buy rating and $54 price target for TWTR stock.

Best Buy Co Inc BBY

Best Buy is a leading North American consumer electronics retailer.

Analyst Elizabeth Suzuki says the company's near-term investments in Totaltech, Best Buy Health, and store rationalizations will likely produce long-term payoffs for investors. In addition, she says the company's guidance for between a 1% and 4% drop in same-store sales in 2023 sets a low growth bar. Suzuki says Best Buy has a proven track record as one of the most consistent and high-quality hardline retailers. Best Buy insider ownership is up 5% in the past year.

Bank of America has a Buy rating and a $135 price target for BBY stock.


APA is an oil and gas exploration and production company formerly known as Apache.

Analyst Doug Leggate says there is still plenty of value in APA shares, even as soaring oil prices have sent the stock up 64% in the past year. Leggate says APA has commodity price leverage and stock-specific catalysts that can unlock value for investors. He says improved contract terms in Egypt and potential exploration success in Suriname could generate surprise upside in the stock. APA insider ownership is up 3.4% in the past year.

Bank of America has a Buy rating and $60 price target for APA stock.

Ford Motor Company F

Ford is one of the largest legacy Detroit automakers.

Analyst John Murphy says Ford's recent decision to split its legacy internal combustion engine business from its next-generation electric vehicle business and form two distinct divisions will help drive margin improvements and unlock value for investors. Murphy says the announcement is an encouraging sign that Ford is making progress on its core-to-future transition and is one of several positive announcements from the company in recent months. Ford insider ownership is up 3.2% in the past year.

Bank of America has a Buy rating and $30 price target for F stock.

Verizon Communications Inc. VZ

Verizon is the largest U.S. wireless carrier.

Following the company's recent investor day event, analyst David Barden is bullish on the stock and anticipated 5G mobility, broadband and the pre-paid "value" segment will be significant growth drivers in coming years. Verizon is targeting $124 billion in revenue in 2025, up from just $110 billion in 2021. Barden says more than 75% of that growth will come from 5G mobility, as more than 80% of devices are expected to be 5G-capable by 2025. Verizon insider ownership is up 1.7% in the past year.

Bank of America has a Buy rating and $64 price target for VZ stock.

AT&T Inc. T

AT&T is a diversified telecommunication, media & entertainment and technology company.

Like Verizon, AT&T is also hosting a virtual investor day event on March 11. Barden says the primary focus of the event will likely be on when the $43 million merger of WarnerMedia with Discovery Communications DISCA will be completed. In addition, Barden says the event is an opportunity for AT&T to share updated long-term growth expectations that can get investors excited about the stock. AT&T insider ownership is up 1.5% in the past year.

Bank of America has a Buy rating and $36 price target for T stock.

Also Read: 3 Penny Stocks Insiders Are Buying


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Posted In: Analyst ColorLong IdeasPrice TargetTop StoriesAnalyst RatingsTrading IdeasBank of AmericaDavid BardenDoug LeggateElizabeth SuzukiJohn MurphyJustin PostTazeen Ahmad