From Insider Buys to Stock Rallies: The 2024 Confidence Playbook

Insider trading activities often provide a window into the confidence levels of a company's leadership regarding its future prospects. In 2024, several notable insider transactions have drawn attention, reflecting strategic decisions across various industries. Let's delve into these cases to understand the context and implications.

1. Cantaloupe Inc.: Strategic Insider Buys Amidst Financial Growth

Cantaloupe Inc. (CTLP:US), a leader in self-service commerce technology, saw notable insider buying earlier this year, reflecting strong confidence in the stock.

In September 2024, Chairman Douglas Bergeron invested $2.1 million in over 284,000 shares, while CEO Ravi Venkatesan and Director Lisa Baird added $50,400 and $44,520 worth of shares, respectively. Earlier, in February, both also made significant purchases.

These transactions later came to align with solid financial performance. In Q3 2024, Cantaloupe posted $67.9 million in revenue, up 12.5% year-over-year, with subscription and transaction fees growing by 15.5%. Gross margin improved to 39.6%, reflecting operational efficiencies.

Strategic initiatives further strengthened its market position. The October launch of the AdVantage Program enhances customer engagement through targeted advertising, while the acquisition of SB Software expanded its European footprint in vending and micro-market solutions.

As of December 31, 2024, Cantaloupe's stock trade at $9.51, marking substantial growth from $6.25 where one of the insiders made their purchase, affirming investor confidence in the company’s trajectory.

2. IONQ: Cluster Buys Following AI and Quantum Expansion

IonQ, Inc. (IONQ:US), a leader in quantum computing, drew attention earlier this year with significant insider and institutional investments. In March 2024, Director Harry L. You purchased 115,000 shares for over $1.07 million. Institutional investors, including Geode Capital and Dimensional Fund Advisors, also increased their holdings in late 2023, signaling confidence in the company's growth prospects.

After these bullish signs,, IonQ's third-quarter 2024 financial results exceeded expectations. The company reported $12.4 million in revenue, representing a 102% year-over-year growth, and secured $63.5 million in new bookings, including a $54.5 million contract with the United States Air Force Research Lab. Additionally, IonQ raised its full-year revenue guidance to between $38.5 million and $42.5 million. These positive developments have been reflected in IonQ's stock performance. As of December 31, 2024, the stock price is $41.77, representing a 350% increase from the $9.28 per share purchase price in March 2024.

3. New Gold Inc.: Bold Buys Despite Operational Challenges

New Gold Inc. (NGD:CN), a Canadian intermediate gold producer focused on responsible mining, gained our attention for strong insider and institutional support earlier this year. CEO Patrick Godin, with over 30 years in mining, showcased confidence by acquiring 57,600 shares in two trades in early 2024, investing over CAD 99,000. Institutional support also remained robust, with Van Eck Associates, AzValor Asset Management, and Renaissance Technologies holding significant stakes.

After the trade was reported at CAD 1.77, New Gold's stock price surged to CAD 3.59, reflecting a 102% year-to-date return, supported by strategic growth, operational efficiency, and exploration successes. The company also recently increased its stake in the New Afton Mine to 80.1% via a $255 million transaction enhancing cash flow prospects and operational strength.

4. Bancorp Inc.: Insider Buys Amid Steady Financials

The Bancorp, Inc. (TBBK:US), a Nasdaq-listed financial services provider with a market capitalization exceeding $1.91 billion, has demonstrated significant insider activity earlier this year. Known for its fintech solutions, institutional banking, and commercial lending services, Bancorp has been a key player in business transformation.

Among the noteworthy trades:

• Stephanie B. Mudick, an independent director, purchased 2,000 shares on March 12, 2024, at $37.11 per share, investing over $74,000.

• Matthew Cohn, another insider, made a series of substantial purchases, including acquiring 2,485 shares at $34.20 per share, amounting to $85,000, and multiple trades in the $30–$36 range earlier in the year.

• EVP Mark Leo Connolly acquired 20,000 shares on May 1, 2024, for over $621,000, signaling executive confidence in the company’s prospects.

These trades preceded Bancorp’s robust Q3 2024 results, where Bancorp reported a 13% rise in net income to $49.5 million, a 23% return on equity, and net interest income of $94.7 million with a 5.21% margin. 

Reflecting on these insider purchases today highlights their alignment with Bancorp's positive trajectory. Insider confidence, coupled with robust financials, served as a precursor to the company’s continued growth, leading to share price growth of 69.77% to $52.63.

5. 5N Plus Inc.: Insider Buys Reflect Confidence in Specialty Materials

5N Plus Inc. (VNP:CN), a Montreal-based innovator in chemical and engineered materials, has been building momentum in industries like aerospace and healthcare. Between March 1 and March 13, 2024, Chairman Luc Bertrand and director Jean-Marie Bourassa purchased 100,100 shares worth approximately CAD 452.5K, signaling high confidence in 5N Plus' trajectory. Trades in May further underscored bullish sentiment, with Bourassa acquiring 20,000 shares at an average price of CAD 5.18.

Following these trades, in Q3 2024, 5N Plus reported robust financial results, with revenue increasing by 25% to USD 78.8 million compared to Q3 2023. Adjusted EBITDA rose by 62% to USD 15.6 million, and net earnings were USD 6.4 million, up from USD 1.5 million in the same period the previous year. 

As of December 31, 2024, 5N Plus Inc. (TSE:VNP) is trading at CAD 7.38 per share. This represents an increase of approximately 69% from the purchase price of CAD 4.396 per share in March 2024.

6. Globe Life Inc.: Insider Buys Amidst Fraud Allegations

Globe Life Inc. (GL:US), a McKinney, Texas-based leader in life insurance and financial services, is proving its resilience after a turbulent year. Despite a market cap of $9.19 billion, the company faced a 50% stock drop in April 2024 following short-seller allegations of issuing policies for fictitious individuals—claims Globe Life swiftly refuted as unfounded.

Insider confidence emerged strongly in response. Between late April and May 2024, key executives and directors purchased $1.45 million worth of stock. Co-Chair and CEO James Matthew Darden acquired 3,000 shares, while Co-Chair and CEO Frank M. Svoboda purchased 5,000 shares across two days. CFO Thomas Peter Kalmbach and independent director Mark A. Blinn also participated, acquiring 500 and 2,000 shares, respectively.

Globe Life’s financial performance further supported this optimism. By Q3, Net income surged to $3.44 per share (+28% YoY), with operating income climbing to $3.49 per share (+29% YoY). Divisional growth remained robust, while net investment income grew 7%.

Since April, Globe Life’s stock has rebounded 46% to $111.52, fueled by insider confidence and strong fundamentals, positioning it for continued recovery and growth.

7. Dexterra Group Inc.: Cluster Buys Following Positive Q1 Performance

Dexterra Group Inc. (DXT:CN), a Canada-based leader in infrastructure support services, gaimed attention after significant insider buying in May 2024. With a market cap of CAD 358.58 million, Dexterra has been serving clients for over 75 years through its diverse operations.

Following the company’s positive Q1 2024 earnings, eight insiders collectively purchased CAD 592K worth of stock. Notable acquisitions include CEO Mark Alan Becker buying 20,000 shares at CAD 5.47 (CAD 109,600) and President Robert A. Johnston acquiring 20,000 shares at CAD 5.40 (CAD 108,000). CFO Denise Achonu, alongside directors, also made sizable purchases, signaling strong insider confidence.

Insider confidence translated into Q3 2024, as Dexterra reported consolidated revenue of CAD 269.7 million, a 1.5% increase compared to Q3 2023 and a 6.4% increase from Q2 2024. Adjusted EBITDA was CAD 31.8 million, with an adjusted EBITDA margin of 18.7%. These results were driven by organic growth, strong market activity, and the contribution from the CMI Management LLC acquisition. 

Strategic moves, such as the sale of Modular operations, streamlined operations and enhanced financial predictability. 

As of December 31, 2024, Dexterra's stock price is CAD 7.8, reflecting a 43.62% increase from the insider purchase price of CAD 5.431. This represents a substantial appreciation in the stock's value, indicating positive market reception to the company's strategic initiatives and financial performance.

8. Hilton Worldwide: Strategic Insider Buy by Melanie L. Healey

Hilton Worldwide Holdings Inc. (HLT:US), a titan in the hospitality industry with a market cap of $49.13 billion, continues to reinforce its position as a global leader.

In 2024, Hilton experienced two significant insider purchases, highlighting confidence in the company’s trajectory:

• Melanie L. Healey, independent director, acquired 2,000 shares on May 28, 2024, at an average price of $199.64 per share, totaling $399,298.

• Judith A. McHale, another independent director, purchased 4,750 shares on September 10, 2024, at an average price of $210.81 per share, totaling $1.001 million.

These transactions not only increased their respective holdings to 14,938 and 26,175 shares but also marked a vote of confidence in Hilton’s strategic direction.

Following the trades Q3 2024 came out at diluted EPS rose to $1.38, and adjusted EPS reaching $1.92. Net income stood at $344 million, while adjusted EBITDA surged to $904 million. Hilton added a record 36,600 rooms to its portfolio, marking a net unit growth of 7.8% YoY.

Strategic acquisitions also bolstered Hilton’s brand portfolio. The acquisition of a majority stake in Sydell Group aims to globalize the NoMad Hotels brand, enhancing its luxury lifestyle segment. This aligns with Hilton’s broader strategy, which includes partnerships with Small Luxury Hotels of the World and plans to acquire Graduate Hotels.

As of December 31, 2024, Hilton's stock price is $247.16, reflecting a significant increase from the insider purchase price of $199.64. 

9. Scana ASA: Insider Moves and Contract Wins

Scana ASA (SCANA:NO), a Bergen-based industrial owner company, is driving decarbonization efforts in the maritime and offshore sectors.

In 2024, Scana saw notable insider trading activity, reflecting strong confidence in the company’s future growth. On June 19, COO Baste Tveito, through Mebas AS, bought 245,000 shares at NOK 2.045 per share, totaling NOK 501,025.

Just two days later, on June 21, Board Member Morten Sverre Blix, via Spiralen Holding AS, purchased 852,631 shares at NOK 2.093 per share, amounting to NOK 1,784,556. 

Then, on August 21, Blix bought an additional 2,300,000 shares at NOK 2.356 per share for NOK 5,416,067, while Chairman Bjorn Gabriel Reed acquired 235,000 shares for NOK 552,718.

These transactions underscored strong insider confidence in Scana’s strategic direction and potential for growth.

Following that Scana posted record-breaking financial results in Q3 2024. Revenue reached NOK 436 million, marking a 13% increase compared to Q3 2023, driven primarily by growth in the Energy division. The company also saw a significant improvement in EBITDA, which rose by 33% to NOK 57 million.Furthermore, Scana reported a net profit before tax of NOK 18 million, reflecting an impressive 82% increase, driven by stronger operational performance.

Scana's subsidiary, PSW Power & Automation, secured a key international contract to deliver mobile DC chargers and integrated battery systems, enhancing the company’s foothold in the electrification market. The project, scheduled for completion in H1 2025, aligns with Scana’s commitment to sustainable innovation.

As of December 31, 2024, Scana ASA's stock price is NOK 2.87, reflecting a significant increase from the insider purchase price of NOK 2.045 on June 19, 2024. This 40% appreciation underscores the market's positive response to the company's strategic initiatives and financial performance.

10. Diversified Energy Co.: Hopeful Insider Buys Amid Declining Performance

Diversified Energy Company PLC (DEC:US), a prominent oil and gas producer, has faced a turbulent 2024 characterized by declining financial performance and operational challenges. Despite these setbacks, the company’s leadership has shown strong confidence through a wave of insider purchases in late September. Notable transactions include Founder and CEO Robert Russell Hutson Jr.’s acquisition of 7,500 shares at $11.28 each, totaling $84,597, and CFO Bradley Grafton Gray’s purchase of 3,000 shares at $11.232, valued at $33,695. Other executives, such as Independent Director David J. Turner Jr. and Non-Executive Vice Chairman Martin Keith Thomas, joined the cluster buy, collectively investing over $200,000.

After these insider trades, Diversified Energy Company saw a notable stock rally driven by a combination of strategic financial maneuvers and positive news that helped boost investor confidence. Despite a challenging Q3 2024, which saw a sharp decline in net income and diluted EPS, the company announced a strong rebound in its commodity derivatives portfolio, gaining $78 million, a 43% increase.

The successful execution of a share buyback program, which reduced the number of shares in circulation, provided additional support to the stock. Moreover, Diversified Energy expanded into coal mine methane (CMM) environmental credit sales, projected to add $8-$10 million to EBITDA for 2024. 

As of year end, the stock has appreciated by 63% from GBP 8.23 to GBP 13.44, reinforcing the confidence shown by the company's leadership through their substantial investments.

Conclusion

Insider trading activities often act as a barometer for a company’s future potential. These ten cases highlight strategic moves across diverse industries, suggesting confidence in long-term growth despite market challenges. Investors may find value in tracking such insider actions as part of their decision-making process.