Eevery investor wants an “in”, an index that will tell exactly what a stock is going to do and when. The kind of signal that cuts the noise of the marketplace and makes sense of the deluge of raw data every business generates. Multiply that data by 10,000 publicly traded stocks, and you’ll get a feel for how intimidating the markets can be.
It’s tempting to follow an expert: a Wall Street analyst or a trading guru. They all have important contributions to make. But here, we’re going to take a look at some corporate insiders. These are names you probably haven’t heard because they are less well known. They are business leaders, with in-depth knowledge of their own business and their business niches.
Insiders know what lies in store for their companies, based on their positions of corporate responsibility – responsibility to directors and shareholders, to generate profits and returns. Which makes their trades a good place to start looking for solid buys.
TipRanks’ Hot stocks from insiders The tool offers investors a range of ways to track insiders and data filters that make it easier to analyze research results. We’ve selected three stocks with recent informative purchases to show how the data is working for you.
Nicolet bank shares (NCBS)
We’ll start with Nicolet Bankshares, a regional small-cap banking holding company based in Wisconsin. The subsidiary, Nicolet National Bank, operates 30 branches in Wisconsin and Upper Michigan, offering a full range of personal and business banking solutions, from checking accounts and savings deposits to mortgages, to wealth management. and pension services.
The company has seen strong revenue and earnings over the past 5 quarters, which continued in its latest quarterly report. Nicolet reported 2Q21 EPS of $ 1.77 per share, based on net income of $ 18.2 million. The net was up 34% year-on-year, with EPS gaining 38% – and beating the consensus by more than 8%. Revenue also beat Street’s forecast, increasing 13.8% from the same period a year ago to $ 55.75 million, a pace of $ 19.62 million. The company ended the first half of the year with total assets of $ 4.6 billion, including $ 792 million in cash or cash equivalents.
Management boasts that Nicolet has the most active acquisition record among Wisconsin banks – and as of 1H21, the company made two relevant announcements. First, in April, Nicolet struck a firm deal to acquire Mackinac Financial, a regional bank with $ 1.5 billion in assets. The transaction will close in 3Q21, subject to shareholder approval; regulatory approval has already been obtained.
Second, Nicolet made a deal to acquire County Bancorp, a major agricultural lender in Wisconsin. The county will also bring $ 1.5 billion in assets to the company, with the merger expected to be finalized in 4Q21. Both companies are now seeking shareholder and regulatory approval.
As for insiders, we see that the company’s chief financial officer, Hubert Moore, and a board member, Robert Weyers, have both made informative buys in recent days. Moore spent over $ 510,000 to buy 7,000 shares, while Weyers’ purchase was smaller, $ 253,000 for 3,500 shares.
Written for Maxim, 5 Star Analyst Michael diana considers the acquisition activity of the company as key.
“We believe NCBS deserves a bonus because of its track record of accretive acquisitions, the most recent of which was announced last month…. Since 2016, NCBS has acquired Baylake Corp, First Menasha Bancshares and Choice Bancorp to become the premier independent bank in the demographically attractive areas of Green Bay and Fox Valley. Its recently announced acquisitions of MFNC [Mackinac] and ICBK [County] should continue NCBS’s sequence of successful acquisitions, in our opinion, ”Diana wrote.
Diana gives the stock a buy rating and a price target of $ 94 which suggests a 30% appreciation of the stock over the coming year. (To look at Diana’s background, Click here)
This small-cap banking firm has garnered 3 recent Wall Street reviews – and they all agree it’s a buy-stock, making the consensus a strong unanimous buy. The shares are priced at $ 72.33 and their average price target of $ 89.33 implies upside potential of 23.5% year on year. (See NCBS Stock Analysis on TipRanks)
Bancorp Glacier (GBCI)
The second stock on our list is another bank holding company, this time the parent company of Montana-based Glacier Bank. The company has bank branches in 8 states, including Montana, Idaho, Wyoming, Colorado, Utah and Arizona, Washington and Nevada. Glacier Bancorp is another of many regional mid-cap banking companies, and its subsidiary offers the usual range of banking services to retail and business customers, both in physical and online locations.
Glacier has more than 190 locations, total assets of $ 20.5 billion, deposits of $ 16.8 billion, and loans of $ 11.2 billion. The company’s year-to-date net profit stands at $ 158.4 million. Second quarter income was $ 76.2 million, up $ 14.2 million year-over-year, or 22%. EPS stood at 81 cents, gaining 21% year-on-year and beating the 73-cent forecast by more than 10%. Excluding the government’s Payroll Protection Program (PPP) activity during the corona crisis, the company reported a 10% annualized increase in lending activity, primarily in commercial lending, a gain of $ 249 million. dollars during the quarter.
Like Nicolet above, Glacier is active in acquisition activities and announced a merger with Altabancorp during the quarter. The Utah-based company will contribute $ 3.52 billion in assets once the merger receives shareholder and regulatory approval.
On the insider side, the “informative buy” here was made by Craig Langel, director and chairman of the board of Glacier Bancorp, who spent $ 773,250 on 15,000 GBCI shares.
Brandon King, covering Glacier for Truist, writes: “We view GBCI as a preferred acquirer in a footprint with limited competition and attractive demographic trends. The company has a disciplined credit culture and was able to solve a higher level of problematic assets than its peers a few years ago. Additionally, the company has one of the best repositories in the country, which should provide better NIM support in a higher rate environment. In our opinion, GBCI will likely continue to increase its organic growth with digestible acquisitions given its hard currency. “
King is pricing GBCI at buy and sets a price target of $ 60, which implies a 17% hike over the next 12 months. (To look at King’s background, Click here)
Overall, Glacier shares are getting a moderate buy by analyst consensus, based on 2 takes and 1 buy. The shares are priced at $ 51.18 and their average price target of $ 58 suggests an 11% rise from that level. (See the analysis of GBCI shares on TipRanks)
Last but not least is IMARA, a clinical stage biopharmaceutical company engaged in hemoglobinopathy research. Specifically, the company has a drug candidate in the pipeline for the treatment of sickle cell anemia and beta thalassemia. These are two blood disorders – the two sets of related diseases – that cause symptoms of anemia; Sickle cell disease is a genetic disorder that causes deformed red blood cells and can lead to serious quality of life issues and shortened lifespan, while beta thalassemia is a hemoglobin disorder, also inherited, which reduces the ability of blood to carry oxygen. Neither set of diseases currently has a fully effective treatment.
The lead drug candidate in IMARA’s pipeline, IMR-687, is a selective and potent small molecule that inhibits PDE9. PDE9, in turn, plays a role in lowering cGMP levels in patients with blood disorders, with associated inflammation, reduced blood flow, and other symptoms. Blockade of PDE9 has been associated with reactivation of fetal hemoglobin – with consequent reduction in symptoms.
In June, IMARA published final data from a Phase 2a clinical trial of IMR-687 in sickle cell disease that showed a significantly lower annualized rate of vaso-occlusive (blockage of blood flow) attacks (VOCs) in the patients. New patients who started taking the drug also showed a longer delay before the first VOC. IMR-687 was also well tolerated by patients, both as monotherapy and in combination with hydroxyurea.
In insider trading, the key deal from an investor perspective was completed in late July by board member Mark Chin. Chin bought 1.333 million shares for almost $ 8 million. Chin’s stake in the company now stands at more than $ 13.5 million.
Leerink Analyst Joseph Schwartz is bullish on IMRA and takes a long-term view when assessing the prospects for the business.
“While IMRA shares have been under pressure this year, we believe encouraging Ph.2a VOC data should give the stock a boost today ahead of expected interim Ph.2b data in the UK. 2H21 … Before the intermediate data of the Ph.2b ARDENT and FORTE in 2H21, we reiterate our OP rating on IMRA, ”Schwartz wrote.
The analyst added, “We currently estimate gross peak sales at around $ 2.8 billion (2035E) and around $ 290 million (2035E) for IMR-687 in SCD and -thalassemia, respectively. We factor clinical and regulatory risks into our probability of success estimates (PoS), which range from 60% / 40% in SCD (US / EU) to 40% / 20% in βthalassemia (US / EU). “
To that end, Schwartz gives IMRA shares a price target of $ 42, indicating genuine confidence and an impressive 661% upside potential from the current share price. (To look at Schwartz’s record, Click here)
Overall, IMRA received two recent buy recommendations from analysts, for a moderate buy consensus rating. (See IMRA stBlockage analysis on TipRanks)
To find great ideas for trading stocks at attractive valuations, visit TipRanks’ Best stocks to buy, a recently launched tool that brings together all the information about TipRanks shares.
Warning: The opinions expressed in this article are solely those of the analysts presented. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.