We recently published a list of 10 Stocks Insiders Spent The Most Money On Recently. In this article, we are going to take a look at where Custom Truck One Source (NYSE:CTOS) stands against other stocks insiders spent the most money on recently.
As the broader market continues to rise this year, we thought it would be interesting to highlight some stocks that have seen significant insider buying recently. Insiders—such as executives and directors—often have valuable insights into a company’s strategy, plans, and future initiatives. For instance, when a CEO or CFO invests their own money to purchase company shares, it can be seen as a strong vote of confidence in the company’s prospects. When an insider makes a substantial financial commitment, it often signals an even higher level of confidence in the company’s future performance.
Why should we be interested in insider trading activity? While both insider selling and buying can be driven by various motives, it is important to consider these moves within the broader context of the company’s fundamentals, industry trends, and overall market conditions. That’s why due diligence before any investment is of the utmost importance. However, insider trading activity in combination with other relevant determinants can offer valuable insights into a company’s capabilities, helping investors make more informed investment decisions.
What are some of the stocks that have seen the most insider investment recently? To find out, we used Insider Monkey’s insider trading stock screener, focusing only on stocks where each individual insider purchase was valued at $2 million or more. This means the total value of insider purchases over the same period (last 60 days) could be higher, but only larger purchases were considered in the search.
Our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds, focusing on insider trading and stock picks from hedge fund investor newsletters and conferences. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
With each stock, we note the value of acquired shares, which refers to the value of shares acquired through individual insider purchases worth at least $2 million each.
An aerial view of a construction site, the lift Boom of the specialization equipment rental services truck in the center.
Custom Truck One Source, Inc. (NYSE:CTOS)
Value Of Shares Acquired: $65,149,080.00
Market Cap: $1.12 billion
In the eighth spot among 10 stocks with significant insider spending lately is Custom Truck One Source – a single-source provider of specialized truck and heavy equipment solutions, such as sales, rentals, and financing. The company operates through three segments: Equipment Rental Solutions (ERS), Truck and Equipment Sales (TES), and Aftermarket Parts and Services (APS).
On January 30, two insiders acquired a total of around $65.15 million worth of shares, at a price of $4 per share. The stock is currently trading at $4.97 per share, having gained 3.33% year-to-date. Over the past 12 months, the stock dropped 27.52%.
For the third quarter of 2024, Custom Truck reported a total revenue of $447.2 million, up by 5.7% from the previous quarter. Gross profit amounted to $91.8 million, representing an increase of $2.6 million from the second quarter of 2024. Net loss was $17.4 million, a decrease of 28.9% compared to the second quarter of the year.
The company’s leadership expects that a rise in electricity demand due to AI and data centers presents a long-term growth opportunity for the company. Industry reports suggest a 24% to 29% increase in United States electricity demand by 2035.
Five analysts have an average “Buy” rating on Custom Truck stock, with a 12-month price target of $6.9, according to Stock Analysis.
Custom Truck is also considered one of the 12 Best Long-Term Penny Stocks to Buy According to Hedge Funds.
Overall, CTOS ranks 8th on our list of stocks insiders spent the most money on recently. While we acknowledge the potential of CTOS our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CTOS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
