Always pay close attention to insider buying. Most times, they’ll lead you to opportunity.

Look at Constellation Energy (STZ), for example. 

After gapping from about $226 to a recent low of about $171, the company’s Chair paid $340,886 for 2,000 shares, paying about $170.44 per share on average. 

This is now the second insider buy for STZ this year. Earlier this year, director William Giles bought 1,000 shares of just over $186,390.

STZ also just announced a quarterly dividend of $1.02 per share, payable August 14 to shareholders of record as of July 30. Plus, analysts at Jefferies just upgraded STZ to a buy with a price target of $205 per share.

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As noted by the firm, “Macro pressures, category weakness, and high competition remain concerning, and earnings aren’t expected to grow until at least F27. However, pressures seem to have peaked (timing unclear), beer’s lowered bar should be achievable, brand health remains best-in-class, and W&S is now a better and smaller part of the biz,” as quoted by Seeking Alpha.

Sincerely,

Ian Cooper