Smart Money's Picks: The 3 Stocks Insiders Are Actually Buying

The smart money isn't chasing the latest headline. It's making concentrated, high-conviction bets where insiders are putting their own skin in the game. While the market buzzes over popular names, a closer look at recent filings reveals three specific stocks where both executives and large funds are demonstrating serious alignment of interest.

First, there's Agree Realty (ADC). The pattern here is clear and consistent. On January 9, Executive Chairman Richard Agree bought 24,000 shares for an estimated $1.7 million. This wasn't a one-off. Over the past six months, ADC insiders have made nine open-market purchases with zero sales. The family's commitment is deep, with President & CEO Joey Agree also buying recently. When the people running the company are consistently buying, it signals a strong belief in the asset's value and future cash flows.

Second, institutional funds are making massive, targeted moves. Saba Capital Management is a key player, showing a clear preference for precious metals and financials. In recent days, it purchased 4,152 shares of ASA Gold & Precious Metals for an estimated $257,548 and 22,290 shares of New Germany Fund (GF) for an estimated $269,040. This isn't casual trading. Saba's track record shows a pattern of heavy accumulation, with over $85 million in recent buys of ASA alone. These are whale wallets moving in a coordinated way, likely seeing value in these niche sectors.

Finally, we have Rumble (RUM). This one stands out for its combination of high insider ownership and explosive growth forecasts. With insider ownership at 35.9%, the alignment between management and shareholders is exceptionally strong. The company is also a growth engine, with revenue growth forecast at 52.5% annually. While the popular "high ownership" list includes names like Frontier and RingCentral, Rumble represents a different tier-a pure-play growth story where insiders are heavily invested and the financials support a bullish trajectory.

The takeaway is that smart money is not spreading thin. It's concentrating capital on a few names where the evidence of confidence is undeniable: consistent insider buying, massive institutional accumulation, and high insider stakes in fast-growing businesses.

The Counterpoint: When Insiders Sell While Hype Builds

The smart money isn't fooled by a good headline. While retail buzz builds around a stock, the real signal often comes from the CFO's trading desk. Reddit (RDDT) is a textbook case of this disconnect.

The company just posted a blowout quarter, beating earnings estimates and seeing its revenue surge 67.9%. The stock reacted exactly as you'd expect, jumping 6.1% on heavy volume. On paper, it's a growth story on fire. Yet, in that same moment, the CFO was cashing out. On January 13, CFO Andrew Vollero sold 3,674 shares for about $959,685. This wasn't a tiny, incidental trade. It represented a 1.44% reduction in his direct holdings, a significant move even for a large position valued near $65.7 million.

This sale, part of a pattern of recent selling by the CFO, is a classic warning sign. It demonstrates that strong earnings and retail optimism do not guarantee insider confidence. When the people closest to the financials are taking money off the table just as the hype peaks, it's a red flag that the ownership percentage can mask a lack of skin in the game. This is the setup for a pump-and-dump, where external enthusiasm drives the price higher while those who know the real story are quietly exiting.

Why This Matters: The Smart Money Signal vs. Retail Hype

The real signal isn't in the static numbers on a "high ownership" list. It's in the recent, large-scale transactions that show skin in the game. The smart money is deploying capital where the evidence of confidence is undeniable: consistent insider buying, massive institutional accumulation, and high insider stakes in fast-growing businesses.

Retail hype often focuses on the popular 'high ownership' list, but the smart money is deploying capital elsewhere. Look at the contrast with Symbotic. While the retail crowd searches for the next big thing, the largest insider selling in the past week came from Symbotic Inc., with a single trade of 3.5 million shares. This is the opposite of alignment. It shows insiders taking massive cash out of a stock just as it's likely in the public eye. The smart money isn't chasing that noise; it's avoiding it.

The bottom line is to watch for 13F filings and Form 4s for follow-through. The initial trades are the skin in the game. For example, the ADC purchase by Executive Chairman Richard Agree for an estimated $1.7 million is a major bet. It's not a tiny, incidental trade. Similarly, Saba Capital's coordinated accumulation of ASA Gold and New Germany Fund shows a whale wallet moving in a targeted way. These are the moves that matter, not the retail chatter. When the people who manage the company are consistently buying, or when large funds are making concentrated, multi-million dollar bets, that's where genuine alignment of interest is happening. Ignore the headlines; follow the filings.