We recently published a list of 10 Stocks With At Least $20 Million In Insider Spending Recently. In this article, we are going to take a look at where Custom Truck One Source, Inc. (NYSE:CTOS) stands against other stocks with at least $20 million in insider spending recently.

As the stock market navigates a complex environment shaped by recent trade policies, mixed economic signals, and new geopolitical circumstances, investors must remain vigilant. While many experts raise concerns about potential increased volatility under Trump, some analysts believe he is the most pro-stock market president in U.S. history.

On Monday, one day before Trump’s 25% tariffs on goods imported from Canada and Mexico into the U.S. were set to take effect, markets declined. The broader market fell 1.8%, marking its biggest one-day drop of the year, while tech stocks saw a 2.6% decline.

“No room left for Mexico or for Canada,” Trump said at the White House on Monday. “The tariffs, you know, they’re all set. They go into effect tomorrow.”

With no certainty about how long these fluctuations will continue, investors seem to be growing more cautious. While it’s difficult to predict what will happen next, some experts believe that the U.S. Federal Reserve might cut interest rates.

Equity strategists in a Reuters poll project that the broader market will finish the year 9% higher than its current level. Morgan Stanley’s Andrew Slimmon suggests that the adoption of AI could lead to a productivity boom, similar to what happened with the Internet in the late 1990s.

Amid market fluctuations and uncertainty, insider trading also comes into focus. Executives and insiders, with their valuable insights into company strategy, plans, and future moves, may have trades worth analyzing. For example, when a CEO or CFO invests their own money in company shares, it can signal strong confidence in the company’s potential.

However, it is important to highlight that both insider buying and selling can be driven by various motives; therefore, these actions should be considered only within a broader context of the company’s fundamentals, industry trends, and market conditions. This is why due diligence is crucial before making any investment. Insider trading activity, along with other relevant factors, can offer valuable insights into a company’s capabilities, helping investors make more informed decisions.

Today, we will focus on stocks that have seen at least $20 million in insider spending recently. For this purpose, we used Insider Monkey’s insider trading stock screener, focusing on stocks where at least one insider purchase over the last three months was valued at $20 million or more. Although the total value of insider purchases during this period may be higher, only those worth $20 million or more were considered in this search. Since there were more than 10 stocks meeting this criterion, we selected the 10 stocks with insider purchases ranging from $20 million to $35 million, choosing those with the highest amounts within this range for further analysis.

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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

For each stock, we provide details on the highest individual purchase, the number of insider purchases between $20 million and $35 million over the last three months and the company’s current market capitalization.

Custom Truck One Source, Inc. (NYSE:CTOS)

Highest Individual Purchase: $32,574,540.00

Number of Purchases Worth Between $20 million and $35 million: 2

Market Capitalization: $932.7 million

The third stock with significant recent insider investment is a single-source provider of specialized truck and heavy equipment solutions, such as sales, rentals, and financing. Custom Truck One Source operates through three segments: Equipment Rental Solutions (ERS), Truck and Equipment Sales (TES), and Aftermarket Parts and Services (APS).

In December, two insiders each purchased $32.57 million worth of Custom Truck One Source shares at a price of $4 per share. At the moment, the stock is trading at $4.14, having lost 13.93% year-to-date.

For the third quarter of 2024, Custom Truck disclosed revenue of $447.2 million, up by 5.7% from the previous quarter. Net loss amounted to $17.4 million, a decrease of 28.9% compared to the second quarter of the year. Gross profit was $91.8 million, representing an increase of $2.6 million from the previous quarter.

The company’s leadership anticipates that the growing demand for electricity driven by AI and data centers will create a long-term growth opportunity. Industry reports project a 24% to 29% increase in electricity demand in the United States by 2035.

Four analysts have an average “Moderate Buy” rating on Custom Truck stock, with a 12-month price target of $5.63, according to MarketBeat.

Custom Truck is also one of the 12 best long-term penny stocks to buy according to hedge funds.

Overall, CTOS ranks 3rd on our list of stocks with at least $20 million in insider spending recently. While we acknowledge the potential of CTOS as an investment, 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.