3 “Strong Buy” shares arouse interest from insiders

For investors looking for a clear path in the markets, a signal that will cut through all the noise and show which stocks are likely to win despite a growing storm of headwinds, insiders cannot be ignored.

We refer to business leaders who hold senior positions with responsibilities in their firms. They are CEOs and COOs and CFOs, Exec VPs and board members, and these positions give them two undeniable qualities. First, a macro picture of the company and its prospects; and secondly, a need to answer shareholders and directors for the company’s results.

What it boils down to is that business insiders do not trade easily with stocks in their own companies. Their actions are scrutinized from within – and from the federal regulators, who require them to publicly report their trade.

Investors can look at these traits by using TipRanks’ Insiders Hot Stocks tool. We have used that tool to do just that, find three stocks whose insiders have recently bought. There are other positive signifiers to follow; these stocks are rated as strong buy by analysts’ consensus and are expected to pick up in the coming months.

Hasbro (HAVE)

We start in a sector that does not always get the attention it should – children’s toys. They have a clear and eager customer base, and the major toy manufacturers save no money on market research or brand acquisitions. Hasbro, the first stock on our list, is a venerable name in the industry dating back to 1923 and owns a number of big toy and game names and brands, including Milton Bradley, Kenner, Dungeons & Dragons, My Little Pony, Power Rangers, Monopoly, Transformers and PJ Masks. The company saw $ 6.42 billion at the top line in 2021, an increase of 17% over the previous year.

Hasbro is working to improve its position in relation to its peers by a strong move towards digital and table games. These are growth segments of the toy industry, and Hasbro, which has names like D&D and Wizards of the Coast, is well positioned to make a profit here.

In April this year, Hasbro reported its results for Q1 22, with the top line beating the forecast for the fourth quarter in a row, while the bottom line came below estimates. On revenue, the company showed $ 1.16 billion, above the $ 1.14 consensus mark. EPS came in at 57 cents, missing the 61-cent forecast.

Despite the loss of earnings, Hasbro has seen some recent insider acquisitions pushing the insider sentiment needle into positive territory. CEO Christian Cocks spent $ 905,000 on 10,102 shares in Hasbro, while board member Michael Raymond Burns made a minor purchase of 2,500 shares and paid $ 219,250.

Hasbro has also scored fans within the analyst community. Analyst Alok Patel of Berenberg rates the stock as a buy, while its $ 118 price target implies a one-year upside of 32%. (To see Patel’s track record, click here)

In support of its position, the analyst writes: “Our Buy dissertation for HAS is predicted on two key points. 1) Consumer products remain resilient; and 2) HAS’s first mover advantage in content-driven strategies, combined with gaming, should translate into better results than peers and the overall toy industry … We note that the WoC and Entertainment segments continue to grow and allow HAS to better protect margins compared to traditional toy creators.An impressive growth profile for the segments has led management to increase investment in both segments. “

The insiders and Berenberg are bullish here – and they are not outstanding. The stock has 8 recent analyst reviews, with a 6 to 2 distribution of Buy over Holder that supports its Strong Buy consensus rating. The stock is priced at $ 89.54 and their average price target of $ 108.50 suggests an upside of 21% for HAS going forward. (See HAS share forecast on TipRanks)

Black stone (BLK)

Now we want to turn to the financial sector, where BlackRock with more than 10 trillion USD in total AUM is one of the world’s largest asset managers. Since 1988, the company has served institutional clients, governments, financial advisors and individuals with high net worth – but it has not neglected the small retail financial market either. BlackRock’s services are available in 38 countries and 82 languages, and the company boasts that it can tailor a financial plan to any customer on any scale.

Earlier this month, BlackRock reported its financial results for Q1 22 and came ahead of estimates. The company showed a 7% year-over-year gain on the top line with $ 4.7 billion in total revenue. Earnings, at $ 9.52 per share. diluted stock, grew 18% y / y and hit the $ 8.74 forecast. All in all, it was a strong start to 2022.

Clearly, BlackRock insiders would agree. William Ford, of the company’s board of directors, made two purchases in the middle of this month and spent a total of $ 2.06 million on buying 3,000 shares in BLK.

In coverage of Morgan Stanley, analyst Michael Cyprys appears to be repeating the director’s bullish sentiment. He writes, “BLK remains focused on investing for growth, while remaining cautious if market conditions become more challenging. But we are convinced of BLK’s track record of delivering returns on consumption through lasting topline growth opportunities …”

“We view BLK as a versatile name among traditional asset managers given their diversified / scale business model that can better navigate a more difficult macro background, leverage Aladdin’s technological capabilities to unlock growth and act strategically from a position of strength.” added the analyst.

These comments support Cyprys’ Overweight (ie Buy) rating on this financial stock, while its $ 932 price target indicates confidence of ~ 40% upside at the end of the year. (To see Cyprys’ track record, click here)

Large financial companies typically get a lot of attention from Street, and BlackRock is no exception. There are 14 recent analyst reviews here, and they include 11 to Buy vs. 3 to Hold for a Strong Buy Consensus. BLK is selling for $ 668.28, and its average price target of $ 870.07 implies ~ 30% upward in the coming months. (See BLK share forecast on TipRanks)

Inozyme Pharma (INZY)

Let’s end with a biopharmaceutical company. Inozyme is researching new treatments for rare diseases of the vascular and skeletal system as well as soft tissue diseases. Specifically, the company focuses on a class of dangerous conditions with few treatments: abnormal mineralization disorders that lead to permanent and crippling diseases. The company’s clinical program is working on new drugs to treat genetic defects in the ENPP1 and ABCC6 genes.

Inozymes’ research is currently narrowed down to one drug candidate, INZ-701, which is considered to be particularly promising for a wide range of uses. The company has two phase 1/2 trials underway, where the substance is tested against both ENPP1 and ABCC6 deficiencies. Earlier this month, Inozyme hit a major milestone as it announced positive initial data from both trials.

On April 4, Inozyme released early results showing that the lowest dose cohort in the ENPP1 study delivered a sustained improvement in plasma pyrophosphate levels. Although this was only based on 3 patients, all showed levels comparable to observations of healthy individuals. In addition, all three patients tolerated the drug well with few side effects. Inozyme continues to dose the second study cohort at the next dose level. Topline data on this study are expected in 2H22.

Next, on April 12, the company announced that it had dosed the first patient in their study of ABCC6 deficiency. This is another clinical phase 1/2 trial that will test dose scaling and tolerance along with preliminary biomarkers and safety data. The company expects to release this information in 2Q22. Taken together, these announcements were an important self for the company as they mark an important removal of risks for INZ-701.

However, clinical trials are costing money, and Inozyme has also announced, on April 14, an offering of more than 16 million shares at $ 3.69 per share. An insider, Robert Hopfner from the board, bought in large amounts during the sale and picked up 1,070,000 shares at a total price of almost $ 3.95 million.

A clear description of the bullish view of Inozyme comes from Christopher Raymond of Piper Sandler, who says: “We recommend investors take a closer look at this name as we believe this stock serves as a good example of” throwing the baby out with bathing water ‘in the midst of one of biotechnology’s deepest and most prolonged fainting spells. Just by looking at the chart, one would think that a major error or reset of the pipeline has taken place. On the contrary, ‘701 had preliminary PoC data opening up a $ 0.5B WW revenue opportunity for a severe ultra-orphan disease (ENPP1 deficiency) with no meaningful clinical alternatives. By combining this with a meaningful opportunity in another ultra-orphan disease (ABCC6 deficiency), where PoC is coming soon, we believe this name has a risk / reward that requires a closer look. “

In line with these bullish comments, Raymond INZY shares offer an overweight (ie Buy) rating, and his $ 40 price target implies a robust 681% one-year upside potential. (To see Raymond’s track record, click here)

Neither the insider nor the Piper Sandler analyst are outliers here, as Wall Street gives INZY shares a unanimous Strong Buy, based on 5 positive analyst reviews. The stock has an average target of $ 30, indicating ~ 486% upwards at the current trading price of $ 5.12. (See INZY stock forecast on TipRanks)

To find great stock trading ideas for attractive valuations, visit TipRanks ‘Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ stock insights.

Disclaimer: The opinions in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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