Insider Buying as a Strategic Indicator: 3 Undervalued Stocks with Conviction Buy Signals

In the intricate dance of capital markets, few signals carry as much weight as insider buying. When executives and board members commit their own resources to a company's shares, it often reflects a profound conviction in its strategic trajectory. This is particularly true for undervalued stocks, where insiders may see opportunities obscured by broader market sentiment. Drawing on recent SEC filings and financial disclosures, three companies stand out as compelling candidates for investors seeking to leverage insider activity to identify underappreciated value and potential turnarounds.

1. U.S. Physical Therapy (USPH): A Resilient Healthcare Play

The healthcare sector has long been a magnet for insider confidence, and U.S. Physical Therapy (USPH) exemplifies this trend. Independent Director Kathleen Gilmartin's recent insider purchases underscore optimism in the company's ability to navigate a challenging landscape. USPH has reported strong revenue growth, bolstered by a new $50 million share repurchase program, which signals management's belief in the stock's undervaluation. While the company faces margin pressures, its focus on expanding outpatient rehabilitation services positions it to benefit from an aging population and rising demand for non-invasive care. For investors, the alignment of insider action with strategic initiatives offers a rare combination of defensive resilience and growth potential.

2. Hims & Hers Health (HIMS): Telehealth's Next Frontier

The digital transformation of healthcare has created fertile ground for innovation, and Hims & Hers Health (HIMS) has emerged as a standout player. The stock surged 44.9% in 2025, driven by robust telehealth adoption and a subscriber base that now exceeds 3 million. A January 2026 SEC Form 4 filing further reinforces this momentum, revealing insider transactions that align with the company's expansion into new care categories, such as mental health and dermatology. HIMS's $250 million share repurchase program, announced in late 2025, underscores management's confidence in its scalable business model. While regulatory risks persist, the company's ability to monetize recurring revenue streams and its first-mover advantage in direct-to-consumer healthcare suggest a compelling long-term opportunity.

3. Biotricity (BTCY): A High-Risk, High-Reward Turnaround

For investors with a higher risk tolerance, Biotricity (BTCY) presents a dramatic case study in insider-driven optimism. The stock has risen 25.9% year-to-date, fueled by growing demand for its remote patient monitoring solutions amid a post-pandemic healthcare shift toward at-home care. However, the company's financial position remains precarious: a late 2025 S-1 filing disclosed a cash balance of just $308,460 and an accumulated deficit of $140.97 million. This has prompted a $44.1 million IPO to stave off Nasdaq delisting. Despite these challenges, insiders' continued investment-coupled with advancements in diagnostic tools-hints at a potential rebound if the company can execute its capital-raising strategy. BTCY's story is a reminder that insider buying, while a powerful signal, must be evaluated alongside a company's broader financial health.

Conclusion: Balancing Conviction and Caution

Insider buying is not a panacea but a lens through which investors can glimpse the private convictions of those closest to a company's operations. USPH, HIMS, and BTCY each illustrate different facets of this dynamic: USPH's disciplined growth, HIMS's digital innovation, and BTCY's high-stakes turnaround. For all three, the alignment of insider action with strategic initiatives provides a compelling case for further scrutiny. Yet, as with any investment thesis, due diligence remains paramount. The current market environment, marked by both technological disruption and regulatory uncertainty, demands a nuanced approach-one that weighs insider signals against macroeconomic realities and corporate fundamentals.