3 “Strong Buy” shares Insiders snap up
The recent market volatility is enough to turn heads and can cause great confusion for retail investors seeking solid market strategy. It’s tempting to look at the experts, but that begs another question: Which experts are the best to follow? There are many to choose from. Wall Street’s corps of professional equity analysts makes frequent and relevant comments on hundreds of publicly traded stocks. However, some investors want opinions that are a little closer to the stock in question. It can be valuable for them to follow the insiders – company leaders whose tasks enable them to know the inner workings of their companies. To make this search easier, you can get started right away using TipRanks Insiders’ Hot Stocks tool. It identifies stocks where insiders have taken informative steps, highlighting some common strategies used by insiders, and gathering the data in one place. Fresh from that database, here are the details of three Strong Buy stocks that are showing ‘informative buying’ in the past few days. Energy Transmission (ET) We start with a midstream company in the energy sector. Midstreamers are the companies that move energy sources – crude oil and natural gas, their derivatives and other fuels – from the wellheads to the refineries and handover points. It’s a necessary network in the hydrocarbon industry, and power transmission exists right in the middle. The company’s transportation network spans 38 states and connects the regions of Appalachia, North Dakota and Texas-Oklahoma-Louisiana. Energy Transfer controls pipelines, terminals and tank farms for oil and gas products. For the first quarter, ET reported net income of $ 3.29 billion, up more than $ 4 billion from net loss for the year-ago quarter. Earnings per share were $ 1.21. The company’s cash flow also grew significantly. ET reported distributable cash flow of $ 3.91 billion compared to $ 1.42 billion in Q1 20, a gain of 175%. Energy Transfer used this cash flow to fund its dividend of 15.25 cents per common share, payable on May 19th. At this rate, the payment is annualized to 61 cents per share, giving a strong return of 6.11%. On the insider side, Energy Transfer’s board of directors Ray Washburne recently bought several shares of ET. Two of these purchases, totaling 200,000 shares, were for approximately $ 1.9 million. His total stake in the stock now exceeds $ 4.2 million. Analyst Todd Firestone, who covers this stock for Evercore ISI, notes the solid quarterly report and believes the company is moving in the right direction. “ET fulfills all major investment themes, a massive, diversified portfolio, a clear path to deleveraging, a focus on returns and growth, protection against commodity and volume fluctuations, and an undisputed valuation that lags far behind the competition. There are two key issues that we believe investors will ultimately focus on [the earnings] Findings: i) The forecast has improved regardless of the storm with systems operating at or above pre-COVID levels, and ii) The additional revenue is already in the bank and has been used to pay off debts of $ 3.7 billion. USD used, ”wrote Firestone. To this end, Firestone gives ET shares an outperform rating (ie buy rating) as well as a price target of USD 14, which implies an upside potential of 38% for the coming year. (To see Firestone’s track record, click here.) Strong Buy’s unanimous consensus rating suggests Wall Street approves of Firestone’s stance on this stock. ET has 9 positive reviews on the file. The stock is selling for $ 10.17, and the average target price of $ 12.67 indicates an uptrend of ~ 25% for a year. (See ET stock analysis on TipRanks) New Fortress Energy (NFE) Let’s stick with the energy industry, but switch a little and take a look at the natural gas segment. New Fortress Energy provides financing, construction and operational maintenance for fully integrated natural gas energy projects in underdeveloped areas around the world. The company defines its mission as bringing clean and affordable energy to the global market. New Fortress operates in Jamaica and Puerto Rico, Mexico and Brazil, and Western Ireland. In its report for the first quarter of this year, Fortress posted total revenue of $ 145.7 million, up 95% year over year, although it was flat from the previous quarter. In other news, the company’s gas projects in Mexico, Nicaragua and Brazil are on track. Two previously announced acquisition deals from Hygo Energy Transition and Golar LNG Partners were closed for the quarter valued at $ 5.1 billion. The company also strengthened its liquidity position during the quarter. The company completed a private senior secured debt offering for a total of $ 1.5 billion due in 2026 and entered into a $ 200 million secured revolving credit facility. John Mack, COB and New Fortress board member, recently made a series of stock purchases totaling 24,000 shares. At an average price of $ 39.88, these were worth more than $ 957,000. In a detailed note on New Fortress, Evercore analyst Sean Morgan sees the company building solid foundations and improving profitability. “NFE expanded its regasification capacity very quickly and had to purchase third party LNG cargoes to meet demand at its facilities. NFE is also working on the development of two offshore FLNG projects … The net result of this supply chain integration is gas self-sufficiency at a fixed price of $ 3-4 / mmbtu, with the first gas expected in 2022, “wrote Morgan The Analyst continued, “For the quarter ahead, NFE will see the direct contribution of its newly acquired GMLP and Hygo assets to the sub-quarter as the transaction closed on April 15th. We anticipate that the contribution of GMLP’s assets in an improving market for LNG carrier spot rates will improve the company’s profitability in Q2 21 as NFE also continues its growing regasification business (including Hygo) and FLNG export projects . “Based on the above, Morgan gives NFE shares an Outperform (ie Buy) rating. Its target price of $ 64 implies a 12-month upside of 60%. (To see Morgan’s track record, click here.) Of the 5 analyst ratings recently submitted for New Fortress, 4 are to buy and 1 to hold, giving the stock its consensus strong buy rating. The shares trade for $ 40.02 and have an average price target of $ 53.20, which translates into upside potential of 33% for the year ahead. (See NFE stock analysis on TipRanks) Green Brick Partners (GRBK) Last but not least, Green Brick is a Texas-based land development and housing company. This is a growth segment of the economy; Real estate and property prices have risen lately. Green Brick invests in land, which it then makes available as land for development projects. The company also finances the construction costs. Green Brick’s most recent first quarter sales were $ 234.5 million, up 9.9% year over year. On the negative side of the ledger, sales have been declining since the third quarter of 20 – but the company typically has short cycles of rising and falling quarterly sales, and the general trend over the past two years has been up. EPS has shown a similar pattern, with Q1 pressures up 64% year over year at 51 cents per share. The strength of the residential real estate sector is evident in its equity performance. The GRBK share has gained an impressive 155% over the past 12 months. If we turn to the insiders, we find that Harry Brandler, of the company’s board of directors, bought 25,000 shares in a series of transactions this week totaling over $ 552,000. It was his second big stock purchase that year; The previous purchase in March was 20,000 shares for $ 428,000. Brandler’s stake in Green Brick now reaches $ 1.9 million. Analyst Aaron Hecht sees the company on solid foundations in his coverage of Green Brick for JMP Securities, despite the sequential declines. “The delivery shortfall wasn’t all that unexpected given the massive increase in the company’s backlog. Management continues to leverage its exposure to the Dallas-Fort Worth and Atlanta markets, benefiting from millennial home purchases and pandemic relocations from urban areas. We believe the current real estate cycle will have legs until 2022, “noted Hecht. The analyst added,” Net new orders were 1,082 apartments in the first quarter of 21, an increase of 71% year-on-year and a record number of apartments for the enterprise. In-Listing Sales In the Level and First Move Up categories, which are often an indicator of millennials, homebuyers were 36%, double the percentage two years ago. “All in all, Hecht rates GRBK stock as an outperform (ie buy) with a price target of USD 30 to suggest room for an uptrend of 30% for a year. (To see Hecht’s track record, click here.) The latest Green Brick valuations have collapsed 3 to 1 in favor of buys versus holds, supporting the consensus rating of analysts at Strong Buy. The stocks are currently valued at $ 23, and their average price target of $ 32 implies an uptrend of ~ 40% from that level. (See GRBK stock analysis on TipRanks.) To find great ideas for trading stocks at attractive valuations. Visit TipRanks ‘Best Stocks to Buy, a newly launched tool that brings together all the insights into TipRanks’ stocks. Disclaimer: The opinions expressed in this article are solely those of the presented analysts. The content is very important that you do your own analysis before making any investment.