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Dear Fellow Investor,
A Pet Care CEO Just Bought About $500,000 of His Skyrocketing Stock
If insiders are putting their money where their mouths are, pay close attention.
Corporate insiders, CEOs, CFOs, directors, and key executives have a perspective most investors don’t. They see demand trends in real time, understand what’s working (and what isn’t), and have visibility into product pipelines, margin pressures, and strategic initiatives well before those details show up in quarterly headlines.
That’s why insider buying matters. Executives sell stock for all sorts of reasons, taxes, diversification, estate planning... but they typically buy for one reason: they believe the stock is undervalued relative to what’s coming next.
Even more interesting is when insiders buy after a big move, either into strength (signaling confidence the rally isn’t finished) or into weakness (signaling the selloff may have gone too far). In today’s market, we’re seeing meaningful insider buying across a range of industries, from pet health to retail to fintech.
Here are three names worth watching.
Company: Elanco Animal Health (SYM: ELAN)
A CEO Buying Into Strength
Start with Elanco Animal Health (SYM: ELAN), a pet and livestock health company that was spun off from Eli Lilly back in 2018.
ELAN has been one of the market’s stronger rebound stories. After bottoming out in April at around $8 a share, the stock has surged to about $22.30, and the move may not be over yet.
What makes the latest rally stand out is what happened on December 11: CEO Jeffrey Simmons paid $478,500 to buy 22,000 shares at an average price of $21.75.
That’s not a symbolic purchase. That’s meaningful money, deployed near recent highs, suggesting Simmons believes the company’s momentum can continue even after a major run.
Operationally, Elanco has benefited from key product launches, including a chewable parasite preventative for dogs and an anti-itch medication, exactly the types of recurring, “must-have” products that pet owners are often willing to pay for, even when other discretionary spending gets squeezed.
And the bigger tailwind here is straightforward: Americans spend big money on their pets, and that spending trend continues to climb.
In 2024, households spent roughly $40 billion on vet care and pet medications alone. Looking forward, spending is projected to surge further. Estimates also suggest Americans will spend about $157 billion on their pets by the end of 2025, with projections reaching almost $200 billion by 2030.
Those are substantial catalysts for companies positioned in veterinary care, pet pharmaceuticals, and preventative treatments—especially businesses that can successfully launch differentiated products and build recurring demand.
What to watch next:
For ELAN, the key question is whether the company can keep converting product traction into sustained revenue growth and margin improvement. If that happens, insider buying into strength could prove to be an early confirmation that the next leg higher is still on the table.
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Company: Bath & Body Works (SYM: BBWI)
Beaten Down… But Insiders Are Stepping In
It’s been a rough year for the stock. BBWI fell from roughly $40 earlier in the year to a low near $14.28. Even after rebounding to about $19.79, it’s still deep in “repair mode” after getting hit on earnings and broader concerns around consumer spending.
But here’s the change in tone: insiders are buying, and not just one person.
On November 21, director Lucy Brady bought just over 3,469 shares at $14.40. Huntington Bancshares CEO Stephen Steinour bought 6,700 shares at $14.86. Former Mastercard executive Francis Hondal bought 3,343 shares around $15. Hershey VP and CFO Steven Voskuil bought 20,000 shares at about $15.04.
Then on November 24, Board Chair Sarah Nash purchased 10,000 shares at $15.58, and Signet Jewelers CEO James Symancyk bought 22,500 shares at roughly $15.58.
That’s a notable cluster of insider buying around the same price zone.
Cluster buying matters because it reduces the odds this is simply one person’s opinion. When multiple insiders independently buy within days of each other, especially after a sharp drop, it often signals internal conviction that the market is mispricing the business.
In retail, sentiment can swing violently. A single disappointing quarter can compress the valuation, even if the underlying brand remains strong and cash generation remains meaningful. When insiders step in at depressed prices, they’re effectively signaling: “This discount is too steep.”
What to watch next:
For BBWI, the market will want to see stabilization, especially around margins, inventory discipline, and forward guidance. If the company can deliver even modestly better-than-feared results, a stock that has been punished could see a sharper-than-expected rebound. Insider buying suggests leadership believes the risk/reward is improving from the levels where they stepped in.
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Company: Fiserv (SYM: FISV)
Oversold, Under Pressure… and Executives Bought Aggressively
Finally, consider Fiserv (SYM: FISV).
Just weeks ago, the stock gapped down dramatically, from about $130 to a recent low near $60. While it’s still trying to pivot higher, the move left the stock severely oversold and sparked a wave of investor concern.
The decline followed the company cutting its growth forecast and earnings outlook, and noting that operations in Argentina could be hurt by poor economic conditions. The selloff was severe enough that the stock fell below $100 for the first time since 2003, according to Barron’s.
But after that selloff, we saw meaningful insider buying:
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CFO Paul Todd bought 17,000 shares for roughly $1 million.
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Chief Administrative and Legal Officer Adam Rosman bought 7,900 shares for about $499,201.
This is the classic “buying into fear” setup, insiders stepping in after a sharp repricing event, when sentiment is washed out and expectations have been reset lower.
In a situation like this, the market usually transitions from panic to a more measured evaluation: How much of the bad news is now priced in? Is this a temporary reset, or something structurally worse?
Insiders buying heavily right after guidance cuts can be a meaningful tell. It doesn’t guarantee an immediate rebound, but it does suggest executives believe the market reaction overshot the reality, and that the business is worth materially more than the post-gap valuation implies.
What to watch next:
With FISV, the focus is on whether fundamentals stabilize and whether management can rebuild credibility with clearer execution and outlook. If that happens, oversold conditions plus insider buying can become a powerful combination for a snapback rally.
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Are there any other stocks with insider buying you've heard about recently? What other sectors of the market are you currently interested in? Hit "reply" to this email and let us know your thoughts!