Insiders are showing confidence in the AI boom by purchasing stocks in Zebra Technologies and UiPath. These companies are poised to benefit from the advancements in artificial intelligence, robotics, and automation.
Zebra Technologies, a maker of IoT-connected devices and workflow automation tools, experienced a decline in its share price due to the pandemic and ongoing supply chain issues. However, insiders, including the executive chairman, a director, and the CEO, recently purchased shares of the stock. This is the first insider activity in two quarters, indicating renewed confidence in the company’s future prospects.
Institutional investors have also been bullish on Zebra Technologies, steadily increasing their holdings over the past three quarters. They currently own about 85% of the stock, suggesting a positive outlook for the company. Nine analysts rate the stock as a Hold, with expectations of double-digit growth in the future.
The upcoming earnings report from Zebra Technologies could serve as a catalyst for the stock. Despite poor guidance for the quarter, there is potential for an easy beat, which could trigger a rebound in the share price.
UiPath, a company that specializes in digital robots with sophisticated AI software, also draws attention from insiders and institutional investors. Insiders own over 30% of the company, primarily the CEO, and have made negligible sales. Institutional investors have consistently bought UiPath stock since its IPO and currently own about 59% of the shares.
UiPath has shown impressive fiscal year highlights, including double-digit growth, outperformance relative to consensus estimates, and market-leading guidance. This has led analysts to raise their price targets, with a projected upside of about 16%. Renowned investor Cathie Wood’s Ark Invest views UiPath as a viable long-term AI investment.
The share price of UiPath appears to be at a bottom and may be preparing for a reversal. The market is currently testing the 150-day EMA for support, and if confirmed, the next catalyst could be the Q3 results in early December.
While UiPath has a Hold rating among analysts, there are five other stocks that top-rated analysts recommend as better buys. MarketBeat identified these stocks, and UiPath did not make the list. However, it is essential to consider different perspectives when making investment decisions.
In conclusion, insiders’ purchases of Zebra Technologies and the institutional buying of UiPath stocks reflect confidence in these companies’ ability to profit from the AI boom. Both companies have solid foundations and strong potential for growth in the future. Investors should monitor the upcoming earnings reports and market developments to make informed decisions.
