The investment game can seem complicated because there are many issues to consider before relying on stocks: Is the time right to load? Are stocks overvalued? Will the faltering stock recover?
All of these concerns are valid, but there are ways to simplify the process, such as examining the actions of Insiders. By insiders, we refer to corporate officials who work “inside” and are responsible for the performance of the companies they work for. After all, they have knowledge that is not available to the average investor. And when they are seen snapping up shares of their company’s stock, especially in large quantities, it sends a clear message to investors that they think the stock offers good value at current levels.
If that wasn’t convincing enough, when the same stocks get the thumbs up of analysts working for one of the world’s largest banks, like JP Morgan, they certainly warrant a closer look.
So, we’ve done just that. Using TipRanks Insiders hot stock Gadget, we’ve included two names that insiders have been pouring millions into recently, and equity experts at JPMorgan also believe there’s room for more growth — with one of them boasting a whopping 175% chance. Furthermore, the analyst consensus rates both as Strong Buys. So, let’s see why you might want to pay attention to these two stocks right now.
Akoya Biosciences (acia)
We’ll first head to the life sciences space and get information about Akoya Biosciences, a company that calls itself “The Spatial Biology Company.” That is, it pioneered a spatial phenotyping technique that enables researchers and clinicians to gain deeper insights into the complex biology of diseases at the cellular level.
Combined, the company’s single-cell imaging products, such as PhenoCycler (formerly CODEX) and PhenoImager (formerly Phenoptics), offer a complete solution that meets the wide-ranging needs of researchers in the areas of discovery, translational, and clinical research.
Products have been steadily gaining momentum, and that was again the case in the most recent reported quarter — for Q1 ’23. Revenue increased 26.7% year-over-year to $21.4 million, beating expectations by $1.08 million. At the other end of the scale, EPS of -$0.49 beat Street expectations. For future projections, the company maintained its previous guidance for the full year of 2023, when revenue is expected to be in the $95-98 million range. The midpoint of this range is above the consensus estimate of $95.92 million.
Despite the good read, AKYA shares have suffered hard this year, down 32% year-to-date. Looks like it’s time for the Insiders to get to work, and there are six of them in total. Clearly, many in C Suite think the stock is undervalued. This week, Board members Thomas Raven and Matthew Winkler and Chairman Robert Schibler took the load, buying 2,020,000, 203,388, and 120,000 shares, respectively. In addition, board members Myla Lai-Goldman and Scott Mendel, along with CFO Johnny Ek, purchased smaller amounts of 20,000 shares each. Combined, these purchases are currently valued at $15.74 million.
They are not the only ones who show confidence. Scanning through the latest edition, JPMorgan analyst Julia Chen has a lot of good things to say about the spatial biology company.
“AKYA delivered another strong quarter on the back of the PhenoCycler-Fusion new product cycle, with several products in the pipeline such as PhenoCycler Fusion 2.0 domain upgrade, PhenoCode boards and expanding RNA slate to accelerate growth in 2023 and beyond… with a significant $17 billion Tam’s biospatial dollars, differentiated value proposition, strong clinical market position, and strong management team, we believe Acea is well positioned to execute and deliver attractive revenue growth and margin expansion.”
Qin backs up these comments with an overweight (i.e. buy) rating and a price target of $18, which indicates the stock has room for growth of 175% over the next year. (To see Chen’s track record, click here)
This is not an anomaly. All six other analyst ratings are positive, which naturally makes the consensus view here a Strong Buy. Analysts see shares rising a whopping 142% in the coming months, considering the average target stands at $15.86. (be seen Akya stock forecast)
Topgolf Callaway Brands (modg)
As for our next JPM insider/powered name, he’s going to morph away from medical devices and into gadgets of a very different color. Topgolf Callaway Brands is a leading name in the global golf industry. Formed from the 2021 merger of Callaway Golf and a golf leisure brand, the company’s portfolio of brands features a range of products that cater to amateur and professional golfers alike – encompassing golf equipment, apparel and leisure.
This golf specialist provided putts on both the top and bottom line in his most recent quarterly readings. Revenue was $1.17 billion, up 12.5% year-over-year, and outperformed Street Calls by $30 million. characteristic. Earnings per share of $0.17 beat the $0.15 that analysts had expected.
However, the company offered a disappointing outlook, with second-quarter revenue expected to be in the range of $1.175 to $1.195 billion, a distance short of the consensus of $1.22 billion.
Management confirmed that it has several initiatives expected to drive growth in the latter part of the year, but did not provide much information regarding these initiatives.
That offered little solace to investors, who sent shares plummeting once they grasped the details. However, director Adebayo Ogunlesi must think the future bodes well for MODG, as he recently acquired 100,000 shares, which are now worth $1,966,000.
Also confident in the company’s continued success is JPM analyst Matthew Buss, who believes Topgolf Callaway stands out in its field.
“Management sees ‘very strong’ demand within the social/indirect business (80% of sales mix), continued tailwind to pilot activities, benefit from PIE, with CFO Lynch confident in FY23 SVS (same place sales) outlook and multiple growth potential The years for Topgolf (long term low single digit SVS with abundant new unit white space) … We believe the company represents the ‘Growth’ name in golf with an accelerated multi-year financial profile including ~10-12% revenue growth Translates to + EBITDA growth in teens.”
Accordingly, the President rates MODG Overweight (i.e. Buy) while his $25 price target suggests the shares will rise 27% higher over the coming months. (To watch the Boss’ track record, click here)
JPMorgan’s offer could turn out to be a conservative view of Valens — the consensus rating is a Strong Buy on the stock, and the average price target of $31.25 suggests a roughly 59% increase from the current share price of $19.66. (be seen Modg stock outlook)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.