A CEO Just Bought 28,900 Shares After a Short Seller Report
When a CEO buys shares — especially after a short seller report or a sharp decline — it can be a powerful signal that the market is mispricing the stock
One of the best ways to uncover opportunities in the stock market is by watching insider buying. When a CEO buys shares — especially after a short seller report or a sharp decline — it can be a powerful signal that the market is mispricing the stock.
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Corporate insiders — executives, directors, and key decision-makers — have a deeper understanding of their company’s operations, strategy, and long-term outlook than anyone else. When they put their own money to work, it often reflects confidence that the selloff has gone too far. Insider buying is never a guarantee of future gains, but it can be a valuable clue, particularly after a sharp pullback or negative news. With that in mind, here are three stocks seeing notable insider buying activity right now.
With the metal surging past $5,000/oz, the headlines are only telling half the story. While most investors chase bullion, one tiny company is sitting on more gold reserves than France, Italy, and China combined. This play moves 10x faster than the physical metal and currently trades at a 99% discount to its true book value.
SoFi Technologies (SOFI): CEO Buys After Short Seller Attack
Insider buying at SoFi Technologies (NASDAQ: SOFI) was already underway before the latest controversy. Just weeks ago, General Counsel Rob Lavet purchased 5,000 shares at roughly $21.04 each, and Eric Schuppenhauer, head of borrowing, purchased another 5,000 shares at $19.93 each.
Then came the Muddy Waters short report, which accused SOFI of being a “financial engineering treadmill.” CEO Anthony Noto responded by purchasing 28,900 shares at $17.32 apiece. The company pushed back forcefully on the report’s conclusions, stating:
“The claims made in the Muddy Waters report demonstrate a fundamental lack of understanding of our financial statements and business. We intend to explore potential legal action against Muddy Waters for the factually inaccurate and misleading report they shared about our business today. Muddy Waters is known for producing reports designed to erode shareholder value solely to allow short sellers to profit from a declined stock price. In fact, their report discloses their intent to begin covering a substantial majority, possibly all, of their short positions immediately upon publication, and therefore they stand to profit from their own misleading report. We have reviewed the full report and believe it is designed to deceive investors.”
Shares of SOFI are now oversold at $17.08. From current levels, a retest of $26 is the initial target.
CoStar Group (CSGP): Executives Spend Millions Buying the Dip
Commercial real estate giant CoStar (NASDAQ: CSGP) has fallen sharply from a peak of $70 per share to around $42, pressured in part by activist investors D.E. Shaw and Third Point. Both firms have previously secured board seats and pushed for a capital allocation committee, but according to Barron’s, they argue that those changes haven’t improved performance. Third Point renewed its campaign in January, with CEO Daniel Loeb calling the board “feckless” and demanding a change in strategy — specifically, a pullback from the company’s investment in Homes.com.
Despite the headline pressure, insiders have been buying aggressively. Board director Rachel Glaser purchased 1,000 shares at $44.94 each, totaling $197,873. President of Marketplaces Fred Saint bought 20,000 shares on March 1 at an average price of $45.33, for approximately $906,600. Most notably, CEO and Founder Andy Florance purchased 55,720 shares at $44.52 apiece, a commitment of roughly $24.8 million. That level of conviction from the company’s own leadership is difficult to ignore.
KKR (KKR): Co–CEOs Step Up With $8.8 Million in Purchases
Shares of KKR & Co. (NYSE: KKR) have been hit hard, dropping from roughly $135 to below $85. But co-CEOs Joseph Bae and Scott Nuttall aren’t waiting on the sidelines. The pair purchased a combined $8.8 million worth of KKR stock last week. As Barron’s reported, board members and co-CEOs have collectively purchased more than $46 million worth of shares since February 11.
KKR addressed the purchases directly, saying: “These purchases reflect our leadership team’s strong confidence in our future performance.”
The stock appears to be finding its footing after testing a low of $84.57 and is beginning to pivot higher. The initial target from here is a move to $100.
Beijing’s ban on germanium, gallium, and antimony is threatening U.S. tech, defense, and energy.
President Trump fired back with Executive Order 14241, fast-tracking 10 critical mineral projects, unlocking federal lands, and declaring lithium, copper, uranium, and gold as national security assets.
Four tiny U.S. public companies — still under $15/share — are already greenlit and could experience instant reratings.
These are “Trump’s Chosen Few” with generational wealth potential.
Why Insider Buying Can Mean More Than a Short Seller Report
Insider buying doesn’t guarantee success, but when executives put significant sums of their own capital into shares following sharp declines or negative headlines, it warrants a closer look. In all three cases — SOFI, CSGP, and KKR — leadership is putting real money behind their conviction. That kind of alignment between insiders and shareholders is rarely something the market gets to see this clearly.
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