Investors’ ears perk up at the whisper of insider buying, akin to a green light at a traffic signal reassuring shareholders of business buoyancy. Insiders dance to a tune of stringent rules, tapping into a rhythmic cycle of pre-clearance, material information abstinence, and performing stock transactions only during the allocated Window Period.
Of particular intrigue are the longer holding periods insiders have, a noteworthy contrast to most traders. Let’s pull out our magnifying glass and inspect recent insider activity in Cummins CMI, Packaging Corp. of America PKG, and Public Storage PSA for those yearning to emulate the insiders.
The Humming of Cummins’ Insider Symphony
Cummins, a distinguished global powerhouse in diesel and natural gas engines, witnessed a VP tiptoeing in with a modest purchase; securing approximately 280 shares at a ballpark sum of slightly over $80k. This year, Cummins’ shares have swelled by an impressive 16%, overshadowing the Zacks Auto sector by a considerable margin.
Market applause echoed post-earnings in 2024, with shares experiencing an uplift triggered by robust quarterly results. The company’s melody mesmerized post-earnings enthusiasts, orchestrating a symphony that resonated well with investors.
Image Source: Zacks Investment Research
A Public Storage Insider Odyssey
Public Storage’s forte lies in self-storage facilities management, with a recent acquisition of approximately 2100 shares by a director, coming in at just under $600k. Yield-hungry investors, especially REIT aficionados, might find Public Storage appealing, given its current 4.3% annual return.
REITs, mandated to share a chunk of their net earnings with shareholders, have Public Storage sweetening the deal with a yield that greatly eclipses the Zacks Finance sector average. This year, the journey for PSA shares has seen some turbulent weather, down by 8% in 2024.
Image Source: Zacks Investment Research
Unwrapping Packaging Corp. of America’s Insider Narrative
Packaging Corporation of America, a significant player in containerboard production, welcomed a director’s dive into the stock with a purchase of 300 shares, coming around the $54k mark. The company’s latest quarterly report surpassed optimistic expectations, enticing a surge in shares post-release.
Lower costs coupled with increased volumes in Packaging and Paper segments fueled the company’s growth engine, propelling EPS well above prior forecasts. Investors can’t ignore the warm embrace of the company’s shareholder-friendly policies, boasting a five-year annualized dividend growth rate of 13%.
Image Source: Zacks Investment Research
Final Thoughts
Insider trades often play as a symphony, serenading investors with tunes of trust and conviction. The recent insider activity in Cummins CMI, Packaging Corp. of America PKG, and Public Storage PSA might be the cadence investors are seeking.
The Dazzling Allure of Bitcoin
The investment world has its shining star. Bitcoin, despite its rollercoaster ride, has outshone other decentralized forms of investment. In the past three presidential election years, Bitcoin lit up the sky with returns like 2012’s +272.4%, 2016’s +161.1%, and 2020’s +302.8%. Zacks hints at another spectacular show coming up.
