In such names the inner activity is hot Vestis NYSE: VSTS, OPICO Health Nasdaq: OPKAnd Grief, Inc. NYSE: GEFAnd investors should take note. From board members to CEOs, CFOs, and other corporate officers, insiders are buying these stocks in droves, indicating above-average confidence in the share price outlook.
The question for investors is whether these stocks are good buys for 2025 and how high their share prices can go. In both cases the response is quite high as the support from analysts, institutions and retail investors is strong. In another, investors may want to avoid the stock because the risk of dilution is too great. Here’s why
Vestis Corporation is on track for a takeover
Vestis Today
(as of 30/12/2024 05:17 PM ET)
- 52-week range
- $8.92
▼
$22.37
- Dividend yield
- 0.92%
- P/E ratio
- 95.38
- Price target
- $15.73
Vestis Corp. is the former uniform division of Aramark, launched in late 2023. The company is about the same size as peer UniFirst but less than a third the size of industry leader Cintas, making it a potential merger or acquisition target. The uniform industry, despite being strong for many years, remains fragmented. Cintas is a potential buyer which has yet to enter the mix. As it stands, several buyer firms have expressed interest, but no firm offer is on the table.
the inside are buying Vestis during 2024, making it the most purchased stock by corporate executives. Nine insiders made 14 purchases during the year, increasing their total holdings to more than 13%. It has grown to a high institutional ownership of around 98% as of late December 2024.
Institutions also bought netting shares in CQ1, Q2, and Q3 this year. The largest shareholder is activist hedge fund Corvax Management. Corvex made several purchases in 2024, owns more than 13% of the stock and may continue to buy in 2025.
Internal and institutional interest in Vestis is tied to the cash flow potential of the business. Cintas is an example of a company that has been able to maintain dividend payments, dividend increases, share buybacks, and a solid balance sheet while reinvesting and self-funding.
Vestis pays a healthy dividend that is less than 25% of its earnings and has a solid balance sheet. It has not yet repurchased significant shares but may begin to do so if it is not taken private or private.
OPKO Health has many catalysts ahead
OPICO Health Today
(as of 12/30/2024 05:45 PM ET)
- 52-week range
- $0.85
▼
$1.76
- Price target
- $2.75
OPKO Health has several catalysts that could boost its share price in 2025. However, the company’s capital position is questionable, and it may not have the funds to continue without positive growth. These may include approvals for the normalization of its core therapy, acquisition, and diagnostic business. Analysts are optimistic, so there is hope. MarktBeat.com tracks three analysts with current ratings; They peg the stock on buy and see it move up to 90% on consensus.
Risk involves shareholder vulnerability that insider purchases are only partially offsetting. 2024 insider activity includes 24 purchases by seven insiders, making it the second most bought stock for the year. However, the company’s share-sale to raise capital increased the number to over 32%. The company has since issued a share repurchase authorization, but the $100 million is insufficient to cover the loss, and more sales may follow.
Grief Insiders put a floor on the market
Grief today
(as of 30/12/2024 05:26 PM ET)
- 52-week range
- $55.95
▼
$73.16
- Dividend yield
- 3.55%
- P/E ratio
- 13.44
- Price target
- $78.67
Greif, Inc. There is one Industrial Services Company specializing in packaging. Its share price has been volatile over the past two years but shows a solid bottom near $60. That bottom is reinforced by insider activity, which is buying the stock at the lower end of the range and selling at the higher level. Insider buying involves the CEO, CFO, and several directors.
Inside Sales is a senior VP. His transactions were earlier in the year and tied to share-based compensation, so there are no red flags for investors. Insiders own about 3% of this industrial packaging company.
Institutional activity Increases volatility in 2024. Institutions own about 50% of the stock; Their activity in 2024 coincided with buying at the low-end of the range and selling at the high. Activity is brisk and ramping higher in Q4, confirming the floor and suggesting another rebound in the stock price.
Analysts also signal a rebound in the stock price. MarketBeat tracks seven analysts who peg the stock at a moderate buy consensus and see it as deeply valued, trading below the lowest price target. A move to match the analyst’s lowest target is with shares near their floor priced up about 10%; A move to consensus would add another 20%.
A potential catalyst for this move is the 2025 results, which are expected to include a wider margin.
Before considering OPKO Health, you may want to hear this.
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