We recently published a list of 10 Stocks Insiders Are Buying This Year. In this article, we are going to take a look at where Smithfield Foods, Inc. (NASDAQ:SFD) stands against other stocks that insiders are buying this year.
Even though this is just the beginning of the year, we thought it might be interesting to see what stocks have attracted the most attention from insiders. Why? Sometimes, when executives or insiders acquire shares early in the year, it could mean that they expect strong financial results or positive company developments.
On the other hand, insiders sometimes sell shares at the beginning of the year for tax reasons. For example, they can sell shares to harvest tax loss or to balance out gains/losses from the previous year.
Both insider selling and buying can be driven by various motives, however, it’s 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.
To identify the 10 stocks insiders are buying this year we used Insider Monkey’s insider trading stock screener and looked for stocks with at least five insiders buying since the beginning of the year. With each stock, we note the number of insiders who recently bought shares.
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).
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Smithfield Foods, Inc. (NASDAQ:SFD)
Number of Insiders Buying: 10
Smithfield Foods, Inc. (NASDAQ:SFD) is a leading global food company and one of the world’s largest pork processors and hog producers. The company operates a diverse portfolio of well-known brands, including Smithfield, Eckrich, Nathan’s Famous, Farmland, Farmer John, and Armour. It has a long tradition, being founded back in 1936, as Smithfield Packing Company. Not only is Smithfield one of the 10 stocks insiders are buying this year, but it is also one of 15 Biggest Agriculture Stocks in 2025.
The company just went public this January, which explains the huge insider trading activity, with as many as 10 insiders, including the President and CEO, CFO, and CBO recently buying its shares. Together they acquired $65.68 million worth of Smithfield Foods shares at a price of $20 per share. Currently, the stock is trading at $21.23 per share, having gone up 7.49% since its initial public offering.
Out of the total amount, the company’s CEO, Shane Smith, acquired 30,000 shares worth $600,000, increasing his holding to 120,000 shares. Smith believes the company is set to grow over the next few years as it has streamlined its operations and is focusing on more profitable packaged meats. Before the listing, Smithfield carved out its European businesses, ended contracts with 26 U.S. pig farms, and also closed a plant in California.
According to Wall Street Journal data, analysts have a favorable view of Smithfield Foods (NASDAQ:SFD), with an average 12-month price target of $34.00, suggesting a potential upside from the current price. However, since the company just recently started trading, more analyst coverage is yet to be expected.
Overall, SFD ranks 3rd on our list of stocks that insiders are buying this year. While we acknowledge the potential of SFD, 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 SFD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.