Key points
- Lucid is the most bought stock by insiders on a dollar and share count basis, but its stock price may not rise much in 2025.
- Tile Shop Holdings is another heavily bought stock with better prospects for share price gains in 2025.
- Vestis is expected to be acquired, taken over or taken private in 2025; If not, its stock price could rise by four figures in the long term.
Insider activity will be strong in 2024 and points to higher stock prices for most people. The question is whether leading insider purchases will be relevant for investors in 2025. Here’s a look at the leading insider purchases tracked by InsiderTrades.comThey are arranged according to the value of the dollar invested, the number of shares purchased, the number of insider buyers, and the volume of transactions.
Lucid Group is the stock most bought by insiders in 2024
Lucid Group (NASDAQ: LCID) was the most purchased stock by insiders in 2024, ranking #1 in terms of dollar value invested and number of shares purchased. However, Lucid Group’s internal activity is limited to one investor, the Saudi Public Investment Fund. The Public Investment Fund owns about 60% of the company and has increased its stake in conjunction with dilution to maintain the balance. With a 60% stake, he is the majority shareholder and director of the board, has a lot of control and is poised to make big profits if Lucid’s stock price rises.
Many want to know whether Lucid’s stock price will rise in 2025 or not Electric car sales forecastCompetition and the path to profitability are likely the answer now. The company has not yet turned a profit, and is not expected to do so this decade. A likely scenario is that Lucid, which has been seeking partnerships within the industry, either merges with another electric vehicle startup or continues to struggle. A major OEM could buy Lucid, however, in this case, the target is the technology, not the final product or production line. Lucid’s advantages include battery and powertrain expertise that deliver longer range and more power than competitors.
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Institutions other than the Public Investment Fund are also buying the stock in 2024. However, the balance of activity turned to the downside in the fourth quarter and is likely to limit gains to no change. Analyst support in 2024 is also unclear. Analysts have pegged the stock as a hold and expected it to advance about 35% at the agreed target, but the revision trend is negative and weighing on the market. Recent reviews suggest that the stock is somewhat overvalued at around $2.50 and is likely to continue trending sideways within the given trading range.
Tileshop penny stock insiders are the most active in 2024
Tileshop (NASDAQ: TTSH) employees are the most active in 2024, ranking first in terms of number of transactions. However, as with Lucid, the activity is centered around a single entity, not a company official. Tileshop shares are being purchased by Fund 1 Investments, which now owns approximately 20% of the outstanding shares. A total of four owners, along with insiders and private investors, own more than 50% of the shares, making it one of the most closely held issues on Wall Street. Institutions, hedge funds and private equity, which own almost all of the remaining shares, are also buying in 2024 and are supporting the price action.
Tileshop experiences a business contraction in 2024 but may return to growth in 2025. Easing financial headwinds should expand economic activity, including the housing market, and increase demand for Tileshop’s products. Until then, this small-cap stock has a strong financial position with high cash and assets, stable liabilities, low total leverage under 2x equity, and increasing equity.
Vestis insiders are buying this takeover target
Vestis (NYSE: VSTS) was the unified arm of Aramark, and launched in an IPO in 2023. Today, it is one of a handful of smaller unified services companies competing in a rapidly consolidating environment. It competes with Cintas, which is approximately four times larger, and Unifirst, which is equal in size. Among the opportunities available to it in 2025 is a merger or acquisition that may include major competitors or private equity. The company has already received several takeover offers, so a bidding war could break out.
Meanwhile, Vestis insiders are collecting shares. It ranks first in terms of the number of insider buyers, which is nine. Insiders include four directors, the CEO, the CFO, and two executive vice presidents along with one major shareholder, Corvex Management. Corvex Management is a hedge fund that specializes in undervalued companies that need to turn around.
In terms of value, Vestis is not a cheap stock compared to the broad market, trading at 20x earnings. However, it offers value compared to UniFirst and deep value compared to Cintas’ 45x valuation. Assuming Vestis is able to capture the cash flow and produce capital return forecasts for Unifirst and Cintas, its stock price could rise by a significant three- to four-digit amount over the next five to 10 years. This is of course if it is not captured or private.
Companies in this article:
| a company | Current price | Price change | Dividend yield | P/E ratio | Consensus rating | Consensus price target |
|---|---|---|---|---|---|---|
| jacket | $16.49 | +0.1% | 0.85% | 102.88 | He catches | $16.91 |
| Tile Shop (TTSH) | $6.95 | +0.3% | nothing | 86.63 | nothing | nothing |
| Lucid Group (LCID) | $2.47 | +1.6% | nothing | -1.90 | He catches | $3.16 |
expertise
Thomas Hughes has been a contributing writer for InsiderTrades.com since 2019.
Areas of expertise
Technical analysis, S&P 500; Retail, Consumer, Consumer Staples, Dividend, High Yield, Small Business, Technology, Economic Data, Oil, Cryptocurrency
education
Associate of Arts in Culinary Technology
Past experience
Market watcher, trader and investor for many sites. She founded Passive Market Intelligence LLC to provide market research insights.
