Key Points
- Globe Life falls hard after a short-sell report; insiders buy the dip.
- Macerich is down for a reason, but turnaround efforts are taking hold: insider buying spikes conspicuously.
- Science Applications International contracted in Q1 but will return to growth soon; insiders buy the dip.
Even good companies fall on hard times. Hard times can shift market sentiment and put downward pressure on their stock prices regardless of the underlying business quality. The stocks on this list have reason to trade at long-term lows but offer opportunities in their business quality, valuations, and outlook. That opportunity is highlighted by insider activity, which is ramping up and buying stock. Insider activity is not guaranteed to raise their respective stock price, but who knows best what to expect besides the company executives?
Insiders Buy the Dip in Globe Life
Globe Life (NYSE: GL) is an insurance company whose stock price is on the rocks—not because of results but because of the short pitch issued in March. Short sellers allege fraudulent and misleading practices in it and its subsidiary, American Income Life. The call caused the stock to implode, falling more than 50% before hitting bottom, but now the rebound is on, and insiders are buying. Insidertrades.com tracks four purchases by four insiders, including an EVP, CFO, CEO, and director. Their purchases offset sales by other execs and netted more than $350 worth of shares. Insiders own about 1.5% of the company, and institutional support is also present.
Institutional activity has been mixed over the last year but turned bullish in Q1 2024, remained strong in Q2, and bullish activity persists in the first month of Q3. Institutions own more than 80% of the stock, providing a much stronger tailwind than insiders. Their tailwind is echoed by the nine analysts covering the company. They rate it a Moderate Buy and see it advancing to $105 at the consensus. The caveat is that the consensus target has declined over the past year; many of the freshest targets are below it.
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Macerich Stock Is Down for a Reason, but Insiders Are Buying
Macerich (NYSE: MAC) is a REIT focused on town centers and malls in communities in the western US. Its stock price is down at rock-bottom prices after years of underperformance and bloated debt levels, but a turnaround is in progress. The latest results were mixed, with earnings weaker than expected, but the report's highlights are promising. The company says it is making progress on its key initiatives, which include reducing costs and debt and improving the balance sheet - shortly after the release, the insiders started to buy.
Five Macerich insiders purchased shares in early May. The purchases are noteworthy for the timing, shortly after the earnings release, and the shift in activity. Not only did buying spike in Q2, but it also reversed the spike in selling seen in Q1.
Institutions are also buying this stock. Institutions bought on balance in Q1 and Q2, raising their total interest to over 87%. The bad news is that the nine analysts tracking the stock rate it as a Sell; sentiment is trending lower, and the consensus target implies a 15% downside.
Insiders Buy the Dip in Science Applications International
Science Applications International (NYSE: SAIC) is well-positioned within the IT world and shows in its stock price. The stock price is trending higher on sustained growth supported by the widening use of cloud-based infrastructure and AI. Today’s takeaway is that the stock price is down to a YoY contraction in revenue that will soon end. Year-over-year growth is expected to resume this quarter and accelerate into next year. Insiders started buying this stock in April. CEO Toni Townes-Whitley made the first purchase, followed by several purchases in June and July by executive vice presidents.
Companies in This Article:
| Company | Current Price | Price Change | Dividend Yield | P/E Ratio | Consensus Rating | Consensus Price Target |
|---|
| Globe Life (GL) | $109.39 | +3.3% | 0.88% | 9.25 | Moderate Buy | $127.10 |
| Macerich (MAC) | $20.26 | +1.7% | 3.36% | 51.95 | Reduce | $18.86 |
| Science Applications International (SAIC) | $111.42 | +1.2% | 1.33% | 18.79 | Moderate Buy | $144.38 |
Experience
Thomas Hughes has been a contributing writer for InsiderTrades.com since 2019.
Areas of Expertise
Technical analysis, the S&P 500; retail, consumer, consumer staples, dividends, high-yield, small caps, technology, economic data, oil, cryptocurrencies
Education
Associate of Arts in Culinary Technology
Past Experience
Market watcher, trader and investor for numerous websites. Founded Passive Market Intelligence LLC to provide market research insights.
