Investors closely monitor insider buys, as they can give hints surrounding the long-term picture.

An insider is an officer, director, 10% stockholder, or anyone who possesses internal information because of their relationship with the company. It’s critical to note that insiders have a longer holding period than most, and many strict rules apply to their transactions.

Several large-cap companies – FedEx FDX, Casey’s General Stores CASY, and Centene CNC – have seen recent insider activity. Let’s take a closer look at the transactions for those interested in trading like the insiders.

FedEx

FDX shares have been somewhat disappointing over the last year, gaining roughly 12% and underperforming relative to the S&P 500. Quarterly results have regularly brought big post-earnings moves, though that’s unsurprising given its economically-sensitive nature.

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Just a few days back, FDX’s CFO swooped in for a purchase, acquiring 1k shares at an overall transaction cost of just under $275K. It was a pretty sizable purchase for the insider, increasing its total shares owned by more than 10%.

Casey’s General Stores

CASY shares have been strong over the past year, gaining nearly 40% and outperforming relative to the S&P 500. Though off its high, the strong performance here is certainly notable given its retail-heavy footprint.

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A director recently purchased 500 shares at a total cost of just under $200k, increasing the total stake by more than 20%.

Centene

CNC shares have fared the worst out of the bunch over the last year, losing nearly 20% and widely underperforming relative to the S&P 500. Several insiders swooped in for purchases just before the Christmas holiday, with the combined transaction totaling roughly $1.6 million.

Though the recent insider purchases may ring positivity, the near-term outlook for CNC shares here remains bearish, with analysts downwardly revising their expectations.

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Bottom Line

Many investors closely monitor insider buys, looking to receive insights into the longer-term picture. The transactions shouldn’t be relied on for near-term performance, as insiders’ holding periods are longer than most, and many strict rules apply.

Rather, investors can see insider buys as an overall net positive concerning the longer-term outlook.

All large-cap stocks above –  FedEx FDX, Casey’s General Stores CASY, and Centene CNC – have seen recent insider activity.

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