"It can be a good idea for traders and long-term investors to keep tabs on what insiders (think directors, the CEO, CFO, and a whole bunch of other executives) are up to when it comes to their own shares. Undoubtedly, there may be a ton of reasons as to why an executive would sell shares of their own company's stock. However, there's only one reason if they're buying more on the public markets, especially if they're already being compensated with shares in the company."
"ConAgra Brands ( NYSE:CAG) has cratered close to 58% from its early-2023 peak, so it's not a mystery as to why an insider would want to buy more shares at historically depressed multiples. Reportedly, some insiders, including directors, have been buying up this month. Of course, there are serious challenges that the consumer packaged goods firm is facing, but with a robust portfolio of brands and, perhaps more importantly, a strategy that could power a recovery in shares,"
Insider purchases by directors and executives often signal confidence, while sales can reflect many motives. Two firms recently recorded notable insider buying, potentially indicating undervaluation. ConAgra Brands shares have fallen about 58% from the early-2023 peak, prompting reported insider purchases. ConAgra features a 7.74% dividend yield and a trailing P/E near 9.8, and maintains a robust brand portfolio with a recovery strategy. Insider buying represents a single data point among many. Independent research and analysis remain essential before purchasing shares, and secular trends like GLP-1 drug adoption could present long-term headwinds.
Read at 24/7 Wall St.
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