This CEO Just Bought $2 Million Worth of His Company’s Stock – Should You?
When company insiders put their own money on the line, investors should take notice.
Insider buying — especially large purchases from executives or board members — is often seen as a sign of confidence. After all, who knows the company better than someone running it? While it’s never a guarantee of future returns, insider activity can provide valuable insight into how leadership views the company’s prospects.
But not all insider buying is created equal. Context matters. A small purchase by a director isn’t the same as a CEO doubling down with millions. And that’s exactly what we’re seeing in some compelling names right now.
One of the most notable recent insider purchases came from Match Group (NASDAQ: MTCH) — but it wasn’t the only one. Executives at Nike and Advanced Micro Devices (AMD) also made significant buys.
Here’s a closer look at these three stocks — and why they might be worth a deeper dive.
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Company: Match Group (SYM: MTCH) Match Group — the parent company of popular dating apps like Tinder, Hinge, and Match.com — just received a bold vote of confidence from its CEO. Spencer Rascoff, who took the helm at Match Group just 100 days ago, has now purchased $4 million worth of MTCH stock in just two quarters. His most recent buy: 70,885 shares for $2 million, split between an average price of $27.89 for 53,398 shares and $28.54 for the remainder. That’s on top of the $2 million he bought back in February at $34.41 per share. That brings his total ownership to 137,478 shares. As Rascoff stated in a post quoted by Barron’s:
Match Group is also looking to reward shareholders in other ways. The company declared a quarterly dividend of 19 cents per share, payable on July 18 to shareholders of record as of July 3. This marks a notable shift for Match, which had previously focused more on growth than shareholder returns. The introduction of a dividend suggests a maturing company, with leadership confident enough in its cash flow and long-term strategy to begin consistent payouts. In short: a turnaround play led by a CEO who’s backing his conviction with serious cash. |
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Company: Nike (SYM: NKE) It’s not every day you see a well-known retail stock trading near multi-year lows. But that’s the case with Nike (NYSE: NKE) — and at least one insider is taking advantage. Director Robert Swan Holmes recently purchased $502,756 worth of shares at an average price of $58.46, a substantial buy for a company of Nike’s size. Wall Street is starting to warm back up to the stock as well. Jefferies recently upgraded Nike to a “Buy” rating and slapped a $115 price target on the stock — nearly double its current level. Their case is centered on a few key ideas:
With expectations low and both insiders and analysts showing renewed optimism, Nike might be primed for a rebound. |
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Company: Advanced Micro Devices (SYM: AMD) The semiconductor industry has been front and center in the AI boom — and Advanced Micro Devices (SYM: AMD) is one of the most talked-about names in the space. So when a top executive buys in, it’s worth paying attention. On May 20, AMD’s Executive VP and Chief Commercial Officer Philip Guido bought 8,800 shares for just under $1 million. It’s a substantial show of confidence in the chipmaker’s long-term prospects — particularly in the AI space. CEO Lisa Su recently revised AMD’s total addressable market (TAM) for AI chips to $500 billion by 2028 — a significant jump from her previous estimate of $400 billion by 2027. That would represent a massive expansion, equal to the entire semiconductor industry’s sales in 2023. AMD’s newest product, the MI300, is its fastest-growing launch ever. The MI300X — a direct competitor to Nvidia’s H100 — is being positioned as “the most advanced AI accelerator in the industry,” according to Su. The chip is already generating buzz as a viable alternative to Nvidia’s dominant position — and could provide AMD with a larger slice of the AI hardware market over the next few years. For long-term investors betting on AI infrastructure growth, AMD remains a key player — and now, a freshly confident insider just reinforced that view. |
