When an insider is buying the company’s stock, it can only be interpreted in one way: they expect the share prices to go up. According to TipRanks, Industria de Diseño Textil, S.A. (ES:ITX) and Cellnex Telecom, SA (ES:CLNX) have positive insider confidence signals. These Spanish companies’ recent insider transactions further prove the point of analysts’ Buy ratings on them.
As a new investor, it could be confusing to analyze the huge amount of data available about stocks. The TipRanks tools for insider trading make it easy for an investor to research and screen the stocks accordingly. The tools are available for different markets, giving investors a wider opportunity to diversify their portfolios.
Let’s have a look at two Spanish stocks and their recent insider activities.
Industria de Diseño Textil, S.A. (Inditex)
Inditex is a well-known name in the textile industry and is the owner of brands like Zara, Massimo Dutti, Oysho, and more.
The company’s stock has gained momentum post-September 2022 and has been trading up by 18% in the last six months. The company’s recent performance in its results has restored investors’ confidence. Despite the current tough time for the retail sector, the company is focused on its inventory management and pricing, which has worked in its favor.
According to TipRanks, corporate insiders have invested in the company’s stock worth €99.9k in the last three months. It also shows that insider confidence in Inditex stock is positive.
In December 2022, the company’s chief executive officer, Oscar Garcia Maceiras, bought shares worth €99.9k at €25.3 per share as an informative buy transaction. His previous transaction was in December 2021, when he bought shares worth €102.5k.
Maceiras is highly optimistic about the company’s future growth prospects in the U.S., which is its second-biggest market. After the company’s results in 2022, he commented, “Our business model is progressing at full pace and has great growth potential going forward.”
Inditex Stock Price Target
The stock has a wide coverage from analysts, with a total of 13 recommendations on TipRanks. Overall, Inditex stock has a Moderate Buy Rating.
The average target price is €27.5, representing a price change of 0.84% from the current level.
Cellnex Telecom SA
Cellnex is a telecommunications infrastructure and network services provider across Europe.
The stock has been trading down by 26% in the last year, but the analysts remain bullish and see this as a good buying opportunity. The company is targeting a debt-free status by 2027, which will further strengthen its financial health.
On TipRanks, the company’s insider trading page shows a positive confidence signal. The insider transactions were worth €30.9k in the last three months. The company’s chief executive officer, Tobías Martínez Gimeno, made this transaction in December 2022.
However, Gimeno has resigned from the company recently and will stay until June 2023.
What is Cellnex’s Target Price?
According to TipRanks, Cellnex has an average target price of €48.29, which has a huge upside potential of 55% on the current price level.
The stock has a Strong Buy rating from the analysts.
Conclusion
A company’s insider transactions can provide useful insights into the potential performance of its stock. It clearly indicates that the insiders see the stock as undervalued and invest in it. This information can also help investors if they use it well and on time for their portfolios.
