Key points
- Columbia Banking System is a high-yield stock whose price has fallen to a long-term low; insiders are buying.
- Akoustis Technologies is in a hyper-growth phase and insiders are buying.
- CG Oncology has a major approval on the horizon and could be an acquisition target; its insiders are buying.
Insider buying is more active than ever, with many of the same stocks purchased in 2023 on the radar in 2024. New names like Columbia Banking System (NASDAQ: COLB), Akoustis Technology (NASDAQ:AKTS)AND CG Oncology (NASDAQ:CGON) they’re also making the cut. These stocks are uncorrelated, except for their insiders, who are buying and have a capital gains outlook.
The high-yield Columbia Banking System is an attractive buy for insiders
Columbia Banking System is the parent company of Umpqua Bank, headquartered in Tacoma, Washington. This stock yielding 7.6% has been purchased by seven insiders, all of whom have purchased since the first of the year. The activity is significant because no insider sales, only purchases, have been recorded for years, and the activity represents a spike in the data. Together they own about 0.5% of the company, but they collectively bought more shares in January and early February than in the past three years. Preferred buys include three directors, the CEO, the CFO, the EVP and a VP.
COLB stock prices recently hit long-term lows following weaker-than-expected guidance. The margin pressure seen in the latest report is expected to persist into 2024, but there is a silver lining. The company is working to address issues to bring profitability in line with industry peers and could outperform the depressed outlook for 2024. Regardless, the dividend is reliable at 57% of earnings outlook.
New bomb from Trump
From Freeport Company | A.D
But NOT for the reasons you might think…
If I’m right, the soul of this country will change forever…
Click here to see my prediction for the 2024 election.
Analysts and institutions are in favor. The twelve analysts tracked by Insidertrades.com rate the stock a Hold and see it as a Deep Value. Recent price action is below analysts’ minimum target, with a stable consensus over the past three months and 27% above the stock price. Institutions own 90% of the company and have been buying on the balance sheet for over ten quarters.
Penny Stock Akoustis Technology in hyper-growth mode
Penny stock Akoustis Technology produces RF filtering devices for the mobile industry. It has been in a persistent downtrend for years, but it may have finally hit bottom. The company has achieved numerous design wins in recent quarters, including at major mobile carriers and U.S.-based automotive component manufacturers. These successes put the company on track to continue growing at a high double-digit pace, around 80% this year and next, and forecasts could be light. Revenue for 2024 is expected to be $33 million, so it will only take a single great product to surpass that.
Among the issues pushing the stock lower is dilution. The company is leaning on share sales to raise capital and has raised the tally by 26% in 2023. The bad news is that shareholder deficits persist and equity capital is declining; the result is that leverage remains low and the balance sheet is strong. Assuming the company gains momentum as expected, stock sales should slow next year.
As for the insiders, four made a single purchase in January or early February. The purchases are notable because they are the first in two years and include the CEO, CFO, vice president and a director. Insiders own about 5% of the company and institutions are also large holders. Institutional holdings top 50%, a sizable sum for a penny stock, and ownership is extensive. Three analysts rate the stock Hold and see it advancing 40% into the low end of their target range.
CG Oncology has a healthy IPO
CG Oncology is an emerging late-stage drug development company on track to be taken over. Its IPO is centered on the launch of its lead treatment, which targets bladder cancer and is expected to be approved soon. The stock was bought by four insiders after the IPO, including major shareholder Decheng Capital Global Life. Decheng Capital is a Menlo Park-based venture capital firm focused on life sciences. It is the 2nd largest stock holder. Insiders own around 15%.
Companies in this article:
| Agency | Current price | Price change | Dividend yield | P/E ratio | Consensus assessment | Consensus price target |
|---|---|---|---|---|---|---|
| Columbia Banking System (COLB) | $19.36 | +2.8% | 7.44% | 11.73 | Jack | $24.13 |
| Akoustis Technologies (AKTS) | $0.73 | +6.9% | N/A | -0.77 | Jack | $1.92 |
| CG Oncology (CGON) | $42.89 | +3.2% | N/A | N/A | N/A |
Experience
Thomas Hughes has been working with InsiderTrades.com since 2019.
Areas of expertise
Technical Analysis, S&P 500; retail, consumer goods, consumer staples, dividends, high yield, small cap, technology, economic data, oil, cryptocurrencies
Education
Associate of Arts in Culinary Technology
Past experience
Market observer, trader and investor for numerous websites. Founded Passive Market Intelligence LLC to provide market research insights.