When insiders buy shares of their own company, investors should take notice. After all, insider buying can be one of the strongest signals of management confidence, as executives, directors, and other insiders often have a deeper understanding of their company’s financial health, growth prospects, and future opportunities than the average investor. While no indicator is perfect, significant insider purchases have historically been viewed as a bullish sign that those closest to the business believe the stock is undervalued and positioned for potential upside.
Plus, nothing shows confidence more than an insider putting their money where their mouth is.
What Insider Buying Is Saying About Robinhood
After dipping on Bitcoin-fueled weakness, Robinhood (NASDAQ: HOOD) is just starting to come back strong, especially with news that an insider bought more than 250,000 shares. In fact, according to a securities filing, director Meyer Malka bought 250,000 shares at prices ranging from $80.07 to $81. Two days before that, Malka picked up 181,000 shares for between $83.24 and $83.63 a share.
Helping, the company just launched its 2026 FIFA World Cup prediction market trading and unveiled new fee reductions for customers. The company said customers can now trade contracts on individual matches, group and tournament winners, spreads, totals, player contracts, and combo bets. That’s a big deal, considering that fans are expected to bet about $50 billion on the games.
A Confidence Signal Emerges at Hims & Hers Health
Shares of Hims & Hers Health (NYSE: HIMS) recently rallied from about $21.53 to a recent high of $31.82. Fueling upside, company director David Wells bought more than $1 million worth of stock. In fact, he bought for the first time since 2021. The stock fell in May after HIMS missed Street forecasts with its first-quarter earnings.
It’s also being praised by analysts for pivoting to brand-name drugs.
Needham analysts, for example, who have a buy recommendation, raised their price target on HIMS to $35 from $30 per share, arguing that long-term gains for investors can offset near-term margin-related headwinds. “The Novo partnership helps to bring in a large number of net new subs for HIMS to create a durable relationship with and cross-sell multiple categories of care like labs, testosterone, and menopause care,” they added, as quoted by Seeking Alpha.
Insider Confidence Builds in Norwegian Cruise Line
Norwegian Cruise Line (NYSE: NCLH) fell on Iran tensions. However, with that now cooling off, the stock is heading higher again. Helping, a few insiders have been buying the stock.
Director Jonathan Cohe bought 30,000 shares at an average price of $15.83 for a total of $474,900. Director Jose Cil bought 15,000 shares at prices ranging from $14.79 to $15.25 for a total of $225,350. Director Brian MacDonald bought 15,000 for an average price of $16.54. And, on May 7, directors Kevin Lansberry and Zillah Byng-Thorne bought a combined 40,867 shares for roughly $643,476.
How Investors Should Interpret the Data
Overall, insider buying doesn’t guarantee a stock will rise in the short term, but it can be a meaningful signal when viewed alongside broader fundamentals and recent catalysts. In fact, we would never buy a stock just because insiders are buying. At least, not before doing our own due diligence, fundamentally and technically.
In cases like Robinhood, Hims & Hers, and Norwegian Cruise Line, these transactions suggest insiders see value that may not yet be fully reflected in the share price. For investors, it’s less about treating insider activity as a standalone trigger and more about using it as an added layer of conviction when a company’s story is already showing signs of improvement.
