Real Life Cluster Buying Shares of the oil producers crashed in the coronavirus sell-off in 2020 as oil prices plunged globally. They remained depressed over the summer of 2020 and into the fall even as crude prices rose back above $40 a barrel. The insiders at explorer Matador Resources saw an opportunity with their shares still in the single digits. In Nov 2020, 6 insiders including the CEO, the COO of Operations and 4 directors, dove in to buy again with 5 buying even before Pfizer's big Nov 9, 2020 announcement that its vaccine was over 90% effective against the coronavirus. Pfizer's announcement, and subsequent roll-out of its vaccine, lit a fire under the beaten down oil stocks. The rally continued into 2022 as energy prices spiked on the Ukraine War. Energy was the best performing S&P 500 sector in 2021 and 2022. From Dec 1, 2020 through Dec 30, 2022, shares of Matador surged 387% Diving in Yet Again But 2023 brought yet further changes to market conditions, as crude and natural gas prices came back down off their Ukraine War highs. Shares of Matador fell to start 2023 and the insiders saw yet another buying opportunity. A cluster of 5 insiders bought shares in the spring of 2023, including the CEO, 2 directors, the EVP of Reservoir Engineering and the President-Operations. Recently, Matador saw record energy production in the fourth quarter 2023. But it sees even brighter days ahead. In 2024, the company expects a record year in energy production, with an 18% year-over-year average production increase. Shares of Matador are up 34% since Mar 17, 2023. What did the insiders know? Buy When the Insiders Buy When high level insiders buy, they are required to report the purchases to the SEC within 48 hours of the trade. The trade then becomes public information. Hedge funds and other professional investors routinely use this information to get an edge on their trades. For most of us, though, it's not easy to get access to insider information. While the media will tout the huge insider buys from celebrity CEO's like Reed Hastings' Jan 2022 $20 million Netflix share purchase, you'll almost never hear about the non-celebrity CEO's, or other top ranked officers when they buy their stocks Was anyone talking about the 2023 Matador cluster buy? The challenge is getting easy and reliable access to all the insider trades and then figuring out which ones to buy. Where to Find the Cluster Buys Anyone can go on the SEC website and get the insider trading information, but it's time consuming to search by individual companies. Some investment firms collect the insider buying data and can provide it to you as a daily list. Have you ever seen one of those lists? The sheer number of companies can be overwhelming. And those lists don't usually separate out the cluster buys, which sometimes take place on different days in the same week. For example, if you're getting daily insider updates, you may not realize that the CEO bought on Monday but three directors bought on Tuesday. You may pass by those 'hidden' cluster buys without even realizing it. Even if you got a list of the cluster buyers, how would you narrow it down to the stocks that are truly worth buying? If I'm going to buy when the insiders are buying, I want to buy only their top picks. Today's Hottest Insider Buys I've developed a unique strategy to identify only the highest quality picks insiders are scooping up. We monitor selected insider buying activity at companies with strong earnings and valuations. Then we analyze: • | Who's buying? How much money are they putting in? | • | When, if ever, have they bought shares in the past? | • | Do they receive shares as part of their compensation, but still want more? | • | Are we seeing "Cluster Buys"? | I'm excited to tell you that I just added a brand-new Cluster Buy stock to my Insider Trader portfolio » I invite you to look into this portfolio right away. Normally closed to the public, it's now open - but only through the weekend. And it's in high demand. So far this year, we've already booked 7 double-digit gains, like +24.4%, +29.9%, and +30.4%¹ - with no losses. Our open positions all have sky-high potential, especially with the new cluster buy. Now is the time to get in on the action. So I encourage you to look into Insider Trader now. Bonus: Just for exploring our insider picks, you can download Zacks' Special Report, 5 Stocks Set to Double, free of charge. These 5 buy-and-holds balance our more active Insider Trader. Each is the #1 favorite of a Zacks expert for its potential to jump +100% or more over the next year. Important note: Access to the Insider Trader portfolio and Special Report is limited. This opportunity ends at midnight Sunday, February 25. Sorry, there will be no extensions to this opportunity. See our insider trades and download 5 Stocks Set to Double now » Tracey Ryniec Editor of Insider Trader Tracey Ryniec, Zacks' insider and value strategist, is Editor in Charge of the Insider Trader. |
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