Insider activity is seldom enough to move a market independently but can signal how a company’s management thinks. Those signals become strong when the institutional and analysts' activity aligns with them, more substantial forces capable of sustaining upward movement in a stock’s price. This article looks at three stocks with solid insider and institutional buying in Q4 2024 and determines whether they are suitable for 2025.
B&G Foods: High-Yielding Consumer Staple Has Risks
B&G Foods (NYSE: BGS) is a small-cap consumer staple with an extensive portfolio of brands. Critical elements include Cream of Wheat, Crisco, Dash, and Sclafani, with representation across the shelf-stable, canned, and frozen foods sections. The stock price is down significantly since the COVID-boom, partly due to a dividend reduction, but maybe at the bottom now. The dividend yields more than 10% at early January price points and has risks, but management is buying shares and showing confidence in the business. The 2024 payout ratio is above 100%, and the outlook for 2026 isn’t much better, but a low bar to hurdle, and there are reasons to expect business to pick up.
Results from staples giant Procter & Gamble revealed consumer strength, with volume rising 2% in calendar Q4 2024. While not directly related, the results also reveal consumers leaning toward premium and higher-margin items, suggesting strengthening in other areas. Trends in 2023 and 2024 included a consumer down-shift to lower-cost brands; the outlook for 2025 consists of a consumer upshift that could gain momentum as the year progresses. Trump's policies are expected to create economic tailwinds with deregulation and growth-friendly policies that include consumers.
Regarding the ownership, four insiders, including a director and three EVPs, bought shares in Q4. There were no sales, and insiders owned about 3.2% of the stock. Institutions own a more significant 66% and were also buying. Institutional buyers include JPMorgan Chase and Barclays, but there is a caveat. The institutional activity in the first two weeks of 2025 is bearish on balance and has the market on the verge of new lows.
Archer Aviation Advances EVTOL Air Capabilities
Archer Aviation (NYSE: ACHR) is an emerging EVTOL manufacturer with a promising future. It is on track to commence production of its vehicles this year. However, the stock has risks because the road to profits is hazy, and dilution is possible. A recent filing doubled the available shares and will significantly drag the market if sold. However, insiders, including the CEO, a director, and a major shareholder, bought shares in Q4, showing confidence in the long-term outlook. The major shareholder is Stellantis, now a 10% holder, which seeks exposure to next-gen transportation and diversification into aerospace.
Archer Aviation's institutional activity was bullish in 2024, with activity ramping to a high in Q4 and buying continuing in 2025. The institutions own more than 65% of this stock and will likely build on the position. The outlook for EVTOL is robust and expected to drive a triple-digit CAGR for this company through the decade's end.
Wolfspeed Volume Hits Peak as Stock Price Hits New Low
Bitcoin operator Wolfspeed’s (NYSE: WOLF) stock price is hitting new lows even as the trading volume ramps higher. Volume is at a record high in 2025, which suggests that a bottom in the action is near. Meanwhile, insiders, including three directors and the chairman, bought the stock in Q4. The insiders own a slight 0.85% of the stock, but the small holding is offset by a substantial institutional interest of about 90%. Institutional activity is also noteworthy for the balance of activity, which was bullish for three quarters in 2024, including Q4 and the first two weeks of 2025.
Wolfspeed analysts have weighed on the stock price recently by lowering price targets. However, the group continues to forecast a triple-digit upside at the consensus, and the low-end range suggests recent action is at its floor.
