Thursday, November 21, 2024

♟ The Big Kahuna Trade: Part 2

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Zeta

"I first started alerting War Room members to ZETA insider buying on Monday, and the stock is up 25% over the last 5 days."

Karim Rahemtulla, Head Fundamental Tactician, Monument Traders Alliance

Karim Rahemtulla

Insiders buying is one of my favorite buy signals for potential trades.

And one company I've been following this week is Zeta Global Holdings (ZETA.

I first started noticing cluster buying on ZETA early this week, and alerted War Room members.

Karim alerting War Room members of cluster buying at ZETA
 

It wasn't long before the stock went higher, and over the last five days it's up 25%.

Insiders buy and ZETA moves up
 

As you'll see in the chart above, the stock has been screaming over the last few days.

Some members in The War Room got on the train after I posted the cluster buying.

Here's what a few of them had to say...

War room members reporting their results
 
War room members reporting their results
 

Results like these are why I love insider buying.

Insiders buy for only one reason. They think their shares are going higher. Why else would they buy in the open market? After all, they have boat loads of options already.

Insiders are sending a signal with their cash - putting their money where their mouth is.

And with so many insiders buying up ZETA, I believe the stock is still in play for another trade, but I would wait for a pullback.

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Trump in Oval Office
Source: Wikimedia Commons

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In the meantime, these companies have seen significant insider buying as well:

The Estee Lauder Companies (EL): On Friday November 15, one director purchased over $20 million worth of shares The stock was purchased at an average cost of $64.01 per share. The trade represents a 49.36% increase in their position.

ZoomInfo Technologies (ZI): Company Founder Henry Schuck recently bought a whopping $5 million wroth of stock, at a price of $10.25.

Ultra Clean Holdings, Inc. (UCTT): Chief Operating Officer Bajwa Harjinder made two large purchases on Nov. 15 and Nov. 13.

Grocery Outlet Holding Corp. (GO): Director Erik Ragatz purchased $2 million shares on the company on Nov. 15.

WK Kellogg Co (KLG): Four buys totaling more than 1 million by director Gund G Zachary from Nov. 12-15.

Rockwell Automation (ROK): Two buys totaling 2million buy by the CFO on Nov. 11-12.

And, these are just since November 12!

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In The War Room, we like to use all types of strategies, from overnight trades to longer term trades. Insider trades usually fall into the long-term category, although we did close an insider trade last week that we held for less than ten days!

The key is to be able to spot a legitimate trade (not a secondary offering or an option exercise), do the analysis and send the trade... in real time. And, that's what makes us the top dog!

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