A director at Bausch Health (BHC) made a $21 million purchase, and their past buys have historically averaged 34% returns within three months. Insiders at Xponential Fitness (XPOF) and Amplify Energy (AMPY) also made their largest-ever purchases after significant price drops, signaling strong conviction in a recovery. These bullish signals suggest insiders believe their stocks are currently undervalued. Conversely, executives at Carlyle Group (CG), Mirion Technologies (MIR), and Oshkosh (OSK) made their largest-ever sales after major stock run-ups. This pattern of insider selling indicates a belief that these stocks may be fully valued and could be due for a correction.

Newegg (NEGG)

• This stock was mentioned as a past successful example of tracking insider trades.
• The podcast previously highlighted insider purchases in the stock.
• Since the first mention on July 21st, the stock is up over 300%.
• Since the second mention on July 22nd, the stock is up over 260%.
• Since the third mention on July 31st, the stock is up almost 100%.

Takeaways

• This is presented as a retrospective success story to validate the strategy of following insider buying activity. There is no new actionable insight for Newegg itself, but it serves as a case study.

Bausch Health

• A director made a significant insider purchase of $21 million worth of stock.
• This specific director has a strong track record, with their previous purchases averaging 34% returns within a three-month period.

Takeaways

• Bullish Signal: A very large purchase by an insider with a proven track record of profitable trades suggests a high level of confidence in the company's near-term future. This could indicate they believe the stock is currently undervalued.

Xponential Fitness

• A director purchased $536,000 worth of stock.
• The purchase was made after a 20% dip in the stock price following an earnings report.
• This is the director's largest purchase ever, increasing their personal holdings by almost 270%.
• This director's previous purchases have averaged 13% returns within a three-month period.

Takeaways

• Bullish Signal: The director is "buying the dip," which suggests they see the recent price drop as an overreaction and a good buying opportunity. The record-breaking size of the purchase, dramatically increasing their stake, signals a very strong conviction in the company's value.

Amplify Energy

• The Chief Financial Officer (CFO) bought $267,000 worth of stock.
• This purchase follows a 50% dip in the stock's price over the last year.
• Other insiders have also been buying the stock recently.
• This is the CFO's largest purchase ever, increasing their listed holdings by over 130%.

Takeaways

• Bullish Signal: When a CFO, who has intimate knowledge of the company's financial health, makes their largest-ever purchase, it's a powerful vote of confidence. The fact that other insiders are also buying after a major price decline suggests a collective belief that the stock has bottomed out and is poised for a recovery.

Carlyle Group

• The General Counsel sold $19 million worth of stock.
• This was the insider's largest sale ever.
• The sale occurred after the stock experienced a 40% run-up in the last three months.

Takeaways

• Bearish Signal: An insider making their largest-ever sale to take profits after a significant rally can be a red flag. It suggests that they may believe the stock is now fully valued or overvalued and could be due for a price correction.

Mirion Technologies

• The Chief Executive Officer (CEO) sold $10.74 million worth of stock.
• This was the CEO's largest sale ever.
• The sale happened after the stock ran up 26% in the last three months.

Takeaways

• Bearish Signal: A large sale from the CEO is often considered a significant bearish indicator. Selling after a strong price increase suggests the company's leader may not see significant upside in the near term and is choosing to cash in on the recent gains.

Oshkosh

• An Executive Vice President (EVP) sold $1.74 million worth of stock.
• This was the EVP's largest sale ever.
• Another Senior Vice President also sold shares last week.
• The sales occurred after the stock ran up 40% in the last three months.

Takeaways

• Bearish Signal: The fact that multiple high-level executives are selling stock after a major rally is a noteworthy warning sign. This "cluster selling" indicates that insiders may collectively feel the stock's price has gotten ahead of itself and are taking profits.