Which 3 Stocks Are Insiders Buying Like Crazy?

As well as analysts, there’s another valuable source of investing inspiration out there. If we turn to Insider Stocks’ tool, we can delve into all the latest insider purchases. These are the stocks that insiders- be it company executives or 10% + shareowners- are snapping up right now. And the reason why this is so interesting is because the timing of these transactions can provide a critical insight into how these insiders see the company performing. Do the people who know the company best consider it a compelling investing opportunity right now? If the answer is ‘yes’ this is a clear bullish signal in the company’s favor.

That certainly seems to be the case with these three stocks. Let’s take a closer look now:

1. GTT Communications (NYSE:GTT)

In the last three months, insiders bought shares worth a whopping $56.16 million. GTT Communications is a multinational telecommunications and internet provider company based in Virginia. And just two days ago five-star insider Spruce House Partnership LP bought $29.5 million GTT shares, taking its total holding to almost $406 million.

Bear in mind, Spruce have a stellar track record with its investing decisions. To date, the company owner scores a 90% profitable transaction rate with an average return per transaction of 41%.

Spruce isn’t alone in its upbeat take on GTT’s outlook. Top-rated Oppenheimer analyst Timothy Horan (Profile & Recommendations) recently reiterated his GTT Buy rating with a $62 price target. This indicates sizeable upside potential of over 40% from the current share price ($43).

According to Horan, GTT’s niche is being able to provision broadband globally to any location. This is mostly over its Ethercloud network with responsive customer care. He is a fan of the company’s recent ‘transformative’ $2.3 billion Interoute acquisition.

“We believe GTT’s unique focus allows it to find highly accretive acquisitions that are ignored by other market participants, allowing it to extend its network and services, setting it up for strong FCF growth” concludes the analyst. See what other Top Analysts are saying about GTT.