Earnings season is a hot time for insider buys… which means it was a profitable time here at the Insider Report.
Just the other day, we booked big profits on sporting goods store Hibbett Inc. (17% stock returns and 109% options returns) after insider activity signaled a buy a few weeks before that.
How did we manage this?
I explain why we picked HIBB in this article, but a brief summary:
HIBB made the pivot to eCommerce to bring itself back from the brink of doom, following in the footsteps of GameStop (GME) and Bed, Bath, and Beyond (BBBY). Insiders bought ahead of earnings because they knew this would excite others.
We enter the trade. The stock runs the day before earnings, and we sell half our stock and options positions for those profits.
Once again, the insiders pulled through for us big-time.
But guess what?
I’ve got another insider buy on my radar… and earnings are in 2 DAYS.
This one could be even bigger, and here’s why:
Before this company’s earnings call in the spring of 2020, during the absolute rock-bottom of the pandemic crash, the Chairman of the Board scooped up plenty of shares at around $4/share.
He was most likely betting on the economic recovery, and it paid off. Earnings also led to a spike in price. Pretty standard stuff.
But here’s the thing…
The Chairman didn’t sell.
Fast forward: 2021’s 2nd quarter earnings come out, leading to a small jump in price… followed by a fast drop. Almost as if some bad news was coming…
Sure enough, the company announces a secondary offering, which would dilute the value of all the shares.
This was when the Chairman doubled down on his position.
I would’ve locked in profits on that first run following the pandemic crash. The fact the Chairman didn’t take the money and run tells me he’s got some serious conviction in this stock. He thinks big things are going to happen, or he would have sold.
And guess what?
Earnings are in 2 DAYS. This could be MASSIVE.
This play is still a buy, but not for much longer.
If you want in…