In this article, we will look at the 10 Beaten Down Stocks Insiders Are Piling Into.
Oversold stocks tend to attract attention when the market starts treating disappointment as permanence. That is usually where insider buying becomes more interesting. Executives often have a clearer view of whether a slump reflects real deterioration or whether the market has simply gone too far. A stock that has sold off hard can stay cheap for good reason, but insider purchases can serve as an early clue that management sees value where the market sees damage.
J.P. Morgan Asset Management says its Undiscovered Managers Behavioral Value Fund seeks to “capitalize on behavioral biases” and looks for “companies with significant insider buying or stock repurchases,” alongside “evidence of overreaction that has caused devaluation” and “attractive fundamentals.” That is a useful framework for battered stocks, where sharp declines often reflect sentiment washing out before the underlying business is fully understood. Franklin Templeton’s Value Balanced Portfolios factsheet takes a similar view from a different angle, focusing on companies with “healthy balance sheets” at “prices that do not accurately reflect cash flows, tangible assets or management skills.” It also notes that managers may “Re-examine a current holding” when “there is unusual insider buying/selling.” Both firms are treating insider activity as one of the signals worth watching when markets may be mispricing a stock after a heavy selloff.
Against this backdrop, we will look at the 10 Beaten Down Stocks Insiders Are Piling Into.
Our Methodology
We used the Finviz screener to identify stocks with an RSI reading of less than 30 and with an increase in insider ownership over the last six months. We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. Rapid7, Inc. (NASDAQ:RPD)
On March 24, 2026, Citi lowered the price target on Rapid7, Inc. (NASDAQ:RPD) to $7 from $11.50 and maintained a Neutral rating. Citi said discussions with the company’s investor relations team ahead of the quiet period led to a more cautious view on the Q1 and FY26 outlook, citing ongoing go-to-market changes, execution risks, and parts of the business experiencing continued churn, along with limited near-term catalysts.
On March 17, 2026, Rapid7, Inc. (NASDAQ:RPD) announced updates to its 2026 PACT Partner Program aimed at strengthening alignment with its partner ecosystem and supporting growth through the channel. The company said the updates include new partner tier differentiation, simplified deal structures, and improved program economics to enhance collaboration, particularly as demand grows for AI-integrated cybersecurity solutions and partner-led implementation.
Last month, Rapid7, Inc. (NASDAQ:RPD) reported Q4 non-GAAP EPS of 44c, above the 42c consensus estimate, with revenue of $217M compared to the $215.17M consensus. CEO Corey Thomas said the company delivered “outperformance” against guidance and highlighted continued traction in its AI-driven security operations approach, while focusing on execution and innovation entering 2026.
Rapid7, Inc. (NASDAQ:RPD) provides cybersecurity software and services.
9. The Walt Disney Company (NYSE:DIS)
On March 25, 2026, Bloomberg reported that The Walt Disney Company (NYSE:DIS) had seen two technology bets face setbacks within a week of Josh D’Amaro becoming CEO. Epic Games announced layoffs of 1,000 employees following weaker engagement for new versions of “Fortnite,” after Disney invested $1.5B in the company two years ago. Separately, OpenAI said it was shutting down its AI video generator Sora and ending a partnership with Disney tied to a potential $1B investment.
On March 18, 2026, Guggenheim lowered its price target on The Walt Disney Company (NYSE:DIS) to $115 from $140 and maintained a Buy rating as it reassessed valuation and leadership transition dynamics following Josh D’Amaro’s appointment as CEO. Guggenheim noted the shares have underperformed the S&P 500 since Bob Iger’s return in 2022 and CFO Hugh Johnston’s appointment in 2023, while pointing to opportunities to rebuild investor confidence.
Earlier in March, Paul Roeder was named Senior Executive Vice President and Chief Communications Officer, reporting directly to Josh D’Amaro and leading global communications strategy, with D’Amaro describing Roeder as an “accomplished” executive with strong relationships across the company.
The Walt Disney Company (NYSE:DIS) operates an entertainment business across its Entertainment, Sports, and Experiences segments globally.
Hedge Fund Resource Center