One of the best ways to spot opportunity is by paying attention to insider activity.

After all, it is the insiders who know their company the best – and if they’re buying, pay close attention.  Oftentimes, there’s a good reason for their buying spree.

Here are three you may want to keep an eye on now.

Nike

Over the last few months, shares of Nike (NYSE: NKE) have been crushed.

Unfortunately, it’s the company’s high debt, low margins, and a price to earnings ratio of 29, which is somehow higher than competition make the stock a pass for me. Not helping, management just said fourth quarter sales could decline 2% to 4% on an annual basis. That’s causing a problem because if we look back at prior management comments, the company expected to see improvements later this year. The latest guidance now says investors will just have to keep waiting to see if that happens at all.

And Wall Street has apparently lost its patience. When expectations are again delayed, confidence in efforts tend to fade, which we’re now seeing.  And unfortunately, analysts and investors exhausted from hope.

Still, not everyone is stepping away.

Headlines are leading traders to the slaughter. If you want the tools to outsmart the herd and fund your financial goals, click here.

Both Apple CEO Tim Cook and Nike CEO and President Elliott Hill have recently shown strong conviction in the name. Cook purchased 25,000 shares at approximately $42.23 per share, totaling just over $1.06 million. Around the same time, Hill acquired more than 23,660 shares at roughly $42.27 per share, also totaling just over $1 million.

While insider buying doesn’t erase the company’s challenges, it does suggest that leadership sees the current weakness as potentially overdone or at least temporary.

Sincerely,

Ian Cooper