Capital returns are a driving force for markets and central to the stocks on this list. These stocks pay significant dividends, repurchase shares robustly, or both, and insider buying is strong. The question is if the capital return is sustainable and if these stocks are good buys for investors.
Insiders Buy High-Yield Myers Industries Diversified Business
Myers Industries (NYSE: MYE) owns a diversified portfolio of manufacturing and equipment businesses. It operates in two distinct segments, including Material Handling and Distribution. The Material Handling segment manufactures numerous products, including pallets, containers, and bins for all verticals of industries. The Distribution segment provides tools, equipment, and supplies for the tire and under-car service industries. The business is tepid in F2024 but sufficient to sustain the robust dividend outlook. The company stock yields more than 5% in early January 2025, and the payment is relatively safe. The stock payout ratio is less than 50%, and earnings growth is expected in the coming fiscal year, improving the metric.
Insider activity in this stock is significant because InsiderTrades tracks none for five consecutive quarters until Q4 2024, when buying spiked to a multi-year high. Buyers include the CEO, who bought on three separate occasions, and four directors for seven purchases. Total ownership is still tiny at only 1.5% after these transactions, but the activity is no less significant because of the history and amount of buying.
Insider activity is also crucial because of the bullish institutional activity, which combines with it to provide a tailwind for stock price action. Institutions have been buying this stock on balance for nine consecutive quarters, with 2024 activity roughly double the preceding year. Recent buyers include JPMorgan Chase & Company, Barclays, and State Street Capital Management. Collectively, the institutions own about 91% of the stock, leaving available shares for the open market. InsiderTrades tracks only one analyst covering this stock, rated as a Hold with the potential for 100% upside.
Mid Penn Bancorp Insider Buying Ramps to Multi-Year Peak
Mid Penn Bancorp (NASDAQ: MPB) insider buying is significant because it, too, was strong in 2024 and ramped to a multi-year high in Q4. Eleven insiders, including numerous directors and the CEO, own about 10.7% of the stock at the end of the year and may continue to buy in 2025. Higher-than-usual interest rates and a solid economic backdrop drive business, which is growing on the top and bottom lines. The institutions own a smallish 43% of the company but are also buying this stock, having purchased on balance for three consecutive quarters and activity ramping higher into the end of 2024.
Analysts' coverage is light but more enthusiastic than that of Myers Industries. InsiderTrades tracks three who rate the stock at a consensus of Moderate Buy with the potential for a 35% upside. Two reports issued after the CQ4 earnings report included price target increases that lifted this mid-Atlantic bank stock. The stock yields about 3% in mid-January.
Centene: No Dividends But Buybacks Make Up the Difference
Centene (NYSE: CNC) is a healthcare enterprise with services ranging from coverage for underinsured and uninsured individuals and families to clinical services and dentistry. 2024 insider activity is mixed but favorable to higher share prices in 2025, with selling in the first half and buying in the second. Buying is significant because it is the first insider buying in two years and the most buying in a single quarter for many more years. Insiders own a fraction of a percent of the company but have sent a strong message with their buys, including purchases by the CEO, CFO, and several directors.
Institutional activity is also mixed but aligns with higher prices in 2025. The institutions bought on balance in 2024 and owned over 90% of the stock at year’s end. One reason for their interest is the robust repurchases. The company doesn’t pay a dividend but offsets the loss with buybacks that significantly reduce the share count by a little more than 3% in F2024.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
