What Smart Money Is Buying: January's Insider Moves Signal Real Skin in the Game

Forget the hype of 'top growth stock' lists. The real signal is what insiders are doing with their own money. Look past the headline numbers and focus on concentrated, recent purchases. That's where the skin in the game is.

Take Aktis Oncology. Last week, institutional buyer EcoR1 Capital made a massive $37.4 million open-market purchase of its shares. This wasn't a small, symbolic trade. It was a significant bet, and it came alongside a pattern of consistent buying from other insiders over the past six months. When a major player like EcoR1 commits that kind of capital, it's a strong vote of confidence.

Then there's Cosmos Health. CEO Grigorios Siokas has been buying steadily, making 11 purchases totaling over $581,999 in the last six months. His most recent transaction was a $65,000 buy. That's a CEO putting his money where his mouth is, consistently adding shares even as the stock may be volatile. This is the kind of alignment that matters.

Now, contrast that with the misleading signal of high insider ownership percentages alone. Lists of "Fast Growing US Companies With High Insider Ownership" often highlight companies like Niu Technologies or Bitdeer Technologies, where insider stakes can exceed 30%. But ownership is a snapshot. It tells you nothing about recent conviction. A high percentage can be built up years ago and then sit stagnant. The smart money looks for the recent action-the new money being deployed.

The bottom line is simple. High insider ownership is a baseline check. Genuine insider conviction shows up in the filings: in the concentrated buys by institutions like EcoR1, and in the steady accumulation by CEOs like Siokas. That's the signal to watch.

The Skin-in-the-Game Test: CEO Purchases and 10b5-1 Plans

The quality of insider buying matters as much as the quantity. A CEO buying shares is a powerful signal, but the structure of that purchase tells you whether it's a real vote of confidence or just a pre-scheduled transaction. Look for concentrated, recent buys that stand out from routine activity.

Consider Virco Mfg. CEO Robert A. Virtue. He added 2,500 shares at $6.32 yesterday, bringing his total position to over 495,000 shares. That's a clean, recent purchase. It's a direct bet on the company's near-term prospects, not a pre-planned move. This is skin in the game.

Then there's SCPQ's Stuart Parker Johnson. His purchase of 250,000 shares in December is a substantial move. That kind of volume signals strong conviction, especially if it's a one-time accumulation rather than a series of small buys. It's the kind of whale wallet activity that moves the needle.

But here's the caveat: the presence of a 10b5-1 plan can dilute the signal. These are automatic trading plans set up in advance, often to buy shares on a regular schedule regardless of market conditions. While they are legal and common, they don't necessarily reflect real-time, high-conviction buying. The filings show a column for 10b5-1, and when a purchase is flagged as such, it's a reminder that the timing may be mechanical, not driven by a sudden belief in the stock's value.

The bottom line is to scrutinize the source and structure. A CEO buying a meaningful block of shares on the open market, like Virtue did yesterday, is a stronger signal than a routine 10b5-1 buy. The smart money looks for the concentrated, recent purchases that stand out from the noise.

Institutional Accumulation and Whale Wallets

The smart money isn't just watching; it's buying. The sheer volume of recent activity is a clear signal. On January 13, 2026, there were 87 open-market insider transactions reported. That's a surge in concentrated buying, moving beyond noise to real accumulation.

The pattern is most visible in a few standout names. Aktis Oncology is a prime example. The company has seen a wave of coordinated purchases from multiple insiders over the past six months, with no sales recorded. The biggest bet came from institutional buyer EcoR1 Capital, which made a $37.4 million open-market purchase just last week. This isn't a one-off; it's a sustained, multi-insider accumulation that shows deep conviction.

Other names are following a similar script. Alumis Inc. has seen insiders buy shares 32 times in six months, with no sales. The activity is led by a few large individual buyers, like Tananbaum James B., who made a $5 million purchase earlier in the month. The pattern is the same: consistent buying from multiple sources, building a whale wallet of shares.

The bottom line is that institutional accumulation and coordinated insider buying are the strongest signals. When a major player like EcoR1 Capital commits tens of millions, and when CEOs and other insiders consistently add shares with no offsetting sales, it's a powerful vote of confidence. This is the smart money flow that matters.

Catalysts and Risks: What to Watch for Smart Money

The insider buying we've seen is a powerful signal, but it's just the beginning. The smart money is now waiting for confirmation. Here's what to watch for in the coming weeks to see if this conviction holds.

First, keep a close eye on upcoming earnings reports for these companies. The recent accumulation needs to be backed by operational performance. For example, Aktis Oncology's massive institutional buy last week will be tested by its next quarterly results. Did the company meet or exceed its growth targets? If the financials align with the insider bets, it validates the thesis. If they disappoint, it raises a red flag about whether the buying was based on future promise or present reality.

Second, monitor the 13F filings from major institutional holders like EcoR1 Capital. These quarterly reports show the big players' portfolio moves. The key metric is the buying/selling ratio for these specific stocks. A sustained pattern of accumulation across multiple quarters, like the one seen in Aktis Oncology and Alumis Inc., is a bullish sign. But if a major holder starts selling shares while the company continues to hype growth, it's a warning. The smart money watches these filings for shifts in whale wallet positions.

Finally, be wary of the classic trap: companies where insiders are selling while management is hyping growth. True alignment of interest is shown through consistent buying, not press releases. The list of high-insider-ownership growth stocks is a good starting point, but it's a snapshot. The real test is the flow of money. If you see a company with a high ownership percentage but recent insider sales, it's a mismatch. The skin in the game is in the trades, not the headlines.

The bottom line is that insider buying sets the stage. The catalysts are the earnings and the next 13F filings. Watch for the performance to justify the purchase, and watch for any change in the institutional buying trend. That's how you separate the real skin in the game from the pump-and-dump hype.