Key Points
- CION Investment Corporation is a BDC that yields more than 12%, and its insiders are buying.
- Granite Ridge is a small oil & gas play with a high yield, and insiders are buying it.
- B&G Foods insiders are buying, but there is a risk of a dividend cut, and it may move to even lower lows.
Insider buying is a telling indicator made more significant by the trends. Sudden insider switching from selling to buying is one value indicator, while persistent insider buying is another. Today, we’re looking at three high-yielding stocks with persistent insider buying and the potential for investor returns over the next year.
Insiders Buy High-Yield CION Investment Corporation
CION Investment Corporation (NYSE: CION) is an investment firm operating as a BDC. BDCs, or business development companies, are tax-advantaged entities that finance the middle market through various loan types and investment options. They allow retail and non-accredited investors to invest in private corporations, a risky asset class made less by the BDC. Among the BDC's responsibilities are higher levels of scrutiny when sourcing investments and business assistance to compound the loans. CION Investment Corporation is well-regarded and provides investors with a solid, steady cash flow.
Insiders bought CION Investment Corporation stock in November 2024. InsiderTrades tracks four trades by four insiders, continuing a multi-year trend. Although insiders have only bought this stock for several years, they show a high conviction in the high-yielding dividend. Among the benefits for BDC investors is a requirement to pay out high levels of income as dividends, which amounts to a 12% yield for CION stock in late 2024. Insiders buying the stock include the CEO, CCO, CIO, and several directors.
The sell-side interest in CION is light but supportive of the market. The two analysts tracked by InsiderTrades rate the stock as a Hold and see it advancing nearly 10% from critical support levels while institutions have been buying. The institutions own only 32% of the stock but have bought it on balance for four consecutive quarters and nine of the last ten.
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Granite Ridge Insiders Buy More Stock
Granite Ridge (NYSE: GRNT) is a small, non-operated oil & gas play with a portfolio of wells and acreage in unconventional plays in Texas. The company’s revenue is tiny compared to most other energy companies, but it can generate profits and free cash flow sufficient to pay dividends. The yield is running above 6% in late 2024 and is expected to be sustained in 2025. Insiders of this company, including the CEO, CFO, and two directors, bought stock in November, extending the buying trend in place. Insiders have only purchased this stock since the SPAC merger and now own nearly 2.0%.
Analysts are more interested in GRNT stock. InsiderTrades tracks four with current ratings and pegs the stock as a Moderate Buy. More importantly, they view this stock as a deep-value trading at $6.35, well below the low-end range of price targets. The low-end range is $7 and a multi-month high when reached. Institutions also support this market, having bought on balance for three consecutive quarters. The institutions, including Barclays, State Street Group, and Geode Capital Management, own about 30% of the stock.
B&G Foods Insiders Scoop Up Value
B&G Foods (NYSE: BGS) insiders, including three EVPs and a director, bought stock in November, aligning with trends in 2024. The insiders have bought on balance for three of four quarters, with Q4 and November activity near the annual high. Insiders own over 3% of this stock, and institutions about 65%. Institutions are also buying in 2024, with net-quarterly activity bullish for seven consecutive quarters.
The bad news is that analysts are not on board with this stock, possibly because of the risk of a dividend cut. The company is a high-yielding name but paid out more than 100% of its earnings in 2024 compared to the 2025 forecast. The analysts rate this stock as a Hold and are lowering their price targets, keeping the market under pressure and unlikely to move higher soon.
Companies in This Article:
| Company | Current Price | Price Change | Dividend Yield | P/E Ratio | Consensus Rating | Consensus Price Target |
|---|
| B&G Foods (BGS) | $6.74 | -1.6% | 11.28% | -19.82 | Reduce | $8.30 |
| Granite Ridge Resources (GRNT) | $6.23 | -2.9% | 7.07% | 17.29 | Moderate Buy | $7.60 |
| CION Investment (CION) | $11.50 | +1.2% | 12.52% | 7.82 | Hold | $12.25 |
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.
