Small Cap Stocks Seeing Considerable Insider Buying

August 9, 2019, By fierce,

It’s always important to know what company insiders are doing.

After all, who knows the company better than an insider — the CEO, CFO, COO, officers, employees, and directors?

If they’re buying a sizable number of shares, it’s often a good idea to start looking into why and perhaps follow them into the stock. That’s because they’re typically privy to information on new products, competition, and the operating environment of the firm.  We have to consider that insiders who are buying their stock would not put up their own money unless they believed the move would be profitable.

In recent weeks, we found two beaten down stocks where insiders have also been buying.

USA Technologies (USAT)

The company that provides wireless networking, cashless transactions, asset monitoring, and other value-added services just saw a beneficial owner add a million shares on August 1, 2019.  This comes after hedge fund Hudson Executive Capital disclosed a 12% stake in the company back in May 2019, buying 4.25-million shares between $5.69 and $5.80 a share.

USA Truck Inc. (USAK)

VP & Chief Commercial Officer Timothy W. Guin bought 10,000 shares of USAK on 08/01/2019 at an average price of $8.17 a share for $81,700.  In addition, EVP and CFO Jason R. Bates bought 15,000 shares on July 30, 2019 at $8.40. Director Robert E. Creager bought 5,721 shares on July 31, 2019, and Director Barbara J. Faulkenberry bought 1,190 shares.

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