Insider Buying Signals: Why GME, MSTR, and EG Offer Contrarian Value in 2025

Amid market volatility and shifting investor sentiment, insider buying by CEOs often serves as a contrarian signal—one that suggests undervalued assets with long-term potential. In 2025, three companies—GameStop (GME), MicroStrategy (MSTR), and Everest Group (EG)—have seen their CEOs make significant purchases, reflecting confidence in their trajectories. This article dissects these moves, analyzing how fundamental growth drivers and technical trends position these stocks as attractive contrarian opportunities.

GameStop (GME): A Strong Buy Signal Amid EPS Optimism

GameStop's CEO, Ryan Cohen, purchased 500,000 shares in April 2025 at an average price of $21.55, investing nearly $10.8 million directly into the company. This move is particularly notable given GME's 20% year-to-date stock decline, signaling Cohen's belief in the company's turnaround.

Fundamental Drivers:
- EPS Revisions: Analysts upgraded GME's fiscal 2025 EPS consensus from $0.02 to $0.75, driven by cost-cutting and stronger video game sales.
- Balance Sheet Strength: GME holds $6.4 billion in cash and equivalents, providing a safety net for strategic moves, such as its recent Bitcoin purchases.

Technical Trends:
- Zacks Rank #1 (Strong Buy): Reflects a bullish outlook, with earnings estimates rising faster than revenue.
- Valuation Discount: Despite a forward P/E of 64.55 (vs. the industry's 6.4), GME trades at a P/B ratio of 0.5 (book value of $11.15/share vs. $21.55 price), offering downside protection.

MicroStrategy (MSTR): Bitcoin's Surge Fuels Insider Confidence

MicroStrategy's CEO, Phong Le, acquired 6,000 shares in June 2025, valuing the transaction at ~$510,000. MSTR's stock surged 80% year-to-date, but Le's purchase underscores a view that the company's Bitcoin exposure remains undervalued.

Fundamental Drivers:
- Bitcoin Correlation: MSTR's stock price correlates tightly with Bitcoin's price swings, offering asymmetric upside as crypto adoption accelerates.
- Balance Sheet: MSTR holds $5.8 billion in Bitcoin, valued at ~$30 billion at peak prices, creating a hidden asset base.

Technical Trends:
- Bullish Chart Pattern: MSTR is breaking out of a “bull flag” pattern, with a 200-day moving average support at $360.
- Valuation: Despite a high P/E ratio (historically negative due to past losses), MSTR's price-to-revenue multiple of 3.62 is reasonable given its Bitcoin reserves.

Everest Group (EG): A Hold with Contrarian Potential

Everest Group's CEO, James Williamson, purchased 1,000 shares in June 2025 at $337.97, despite the stock's 15% drop year-to-date. While Everest carries a Zacks Rank #3 (Hold), its fundamentals hint at an undervalued reinsurance play.

Fundamental Drivers:
- Consistent Sales Growth: Everest's top-line revenue grew 3% YoY to $4.26 billion in Q1 2025, though underwriting losses from catastrophes (e.g., California wildfires) pressured profits.
- Book Value Resilience: Despite Q1 underwriting misses, book value rose 6% YoY to $332.39/share, supported by strong investment income.

Technical Trends:
- Valuation Discount: Everest trades at a P/B of 0.81, below its 10-year average of 1.20, and its P/E of 9.08 is reasonable given its stable cash flows.
- Dividend Support: A 2.34% yield and payout ratio of 41% provide downside protection.

Why These Are Contrarian Plays

All three companies face near-term headwinds—GME's revenue stagnation, MSTR's crypto volatility, and EG's catastrophe losses. Yet their CEOs' purchases highlight long-term conviction:
1. GME: Cohen's direct ownership shift (from LLC to personal holdings) signals a commitment to rebuilding the retailer's digital and physical hybrid model.
2. MSTR: Le's stock purchases align with MSTR's strategy to leverage Bitcoin's institutional adoption, a trend likely to outlast short-term crypto dips.
3. EG: Williamson's buy underscores confidence in Everest's ability to rebound from Q1's catastrophe-driven underperformance.

Investment Advice

• Buy GME: For investors seeking high EPS growth at a P/B discount. Target $25–$30, with a stop below $18.
• Hold MSTR: Ideal for crypto bulls willing to accept volatility. Watch Bitcoin's price and MSTR's balance sheet.
• Dip-buy EG: Seek entry points below $300, aiming for $350–$400. Avoid if catastrophe losses worsen.

Conclusion

In 2025, insider buying by GME, MSTR, and EG CEOs marks a contrarian opportunity to invest in companies with strong fundamentals at discounted prices. While short-term volatility persists, these purchases—backed by solid EPS revisions, Bitcoin leverage, and resilient balance sheets—position these stocks to outperform as markets stabilize.

As always, investors should conduct their own analysis and consider risk tolerance before acting.