Key Points
- Magnera’s stock price is amid a reversal, and insiders are buying it.
- Energizer insiders are buying the stock, signaling a reversal in the price and aligning with an outlook for higher prices.
- Smith-Douglas Homes insiders are buying; it’s growing faster than the industry and repurchasing shares.
With interest rates expected to fall and the stock market rally expected to broaden, activity is picking up in small-cap stocks such as Magnera (NYSE: MAGN), Energizer (NYSE: ENR), and Smith-Douglas Homes (NYSE: SDHC). While unrelated in business, each market shows a technical bottom and potential for a significant reversal, and their insiders are buying.
Institutions and analysts compound insider activity, which amounts to solid support bases and market tailwinds for these stocks.
Magnera Corporation: Has a Wrap on Specialty Materials
Magnera Corporation specializes in materials, utilizing over 25 technologies to produce products from more than 100 materials. It resulted from a merger in 2024. Products include non-woven materials and films serving industries such as personal care, healthcare, and food service. Its business is expected to grow in 2025, with acceleration anticipated in FY2026.
The company is not profitable today, but is expected to improve in the back half and produce a robust bottom line next year.
Regarding the insiders, members, including the CEO and several directors, bought stock in May. Their buys bring total ownership to over 2% and are compounded by institutional and analyst activity. The analyst coverage is tepid, with only two ratings tracked by InsiderTrades, but they rate as a Hold and forecast a double-digit upside in late July.
Institutions are more bullish, owning approximately 77% of the stock and buying on balance in Q1, Q2, and the first three weeks of Q3.
The catalyst for Magnera’s stock price advance may come with the FQ3 earnings release in August. The bar has been set low with analysts reducing their estimates during the quarter; still, the company is forecasted to grow compared to last year and produce adjusted profits.
Profits are forecasted to be small, at approximately 3 cents. Still, there is potential for outperformance due to strong product demand and the trend of better-than-expected economic data since the last release.
Energizer Insiders Buy the Rally in ENR Stock
Energizer’s stock price has been bottoming for several quarters, and insiders have begun to buy it. InsiderTrades tracked buys from four insiders in the first half, which is notable because it represents the first buying activity in over two years and a multi-year high in both buying and total activity.
The net result is that insiders now control approximately 1% of the stock, a relatively small amount, but a significant signal to the market.
Institutions, which own about 94% of the stock, send a stronger signal. They have been buying on balance all year, aligning with the uptrend, and are compounded by analysts. Analysts rate the stock as a Hold, but it is a firm Hold with eight covering the stock, and the price target is robust.
The group moderated their targets earlier in the year to align with the consensus, which forecasts a 30% upside. Energizer also has a low bar to beat with its upcoming earnings report; it is already profitable and pays a reliable dividend that is worth 5% in late July.
Smith-Douglas Homes Grows Against the Trend
Smith-Douglas Homes is a smaller homebuilder headquartered in the Southeast, focusing on semi-custom detached homes. The company is expected to grow in 2025 at a solid double-digit pace, outpacing the broader home builder industry, and its stock price is poised for a reversal.
Insiders, specifically director George Ervin Perdue III, are buying the stock at its lows, and so are institutions. Institutional activity evaporated in early Q3 but bought on balance in Q1 and Q2, providing a solid support base during the bottoming process.
Smith-Douglas Homes announced a buyback authorization late in Q2 that will provide support for the market in the second half. The $50 million allotment will be funded from existing cash, equivalents, and future cash flows, accounting for approximately 4.5% of the market capitalization in mid-2025.
However, analysts have not yet committed to this investment. The five tracked by InsiderTrades rate it as a Hold with a bearish bias and expect its stock price to decline by 12%.
Companies in This Article:
| Company | Current Price | Price Change | Dividend Yield | P/E Ratio | Consensus Rating | Consensus Price Target |
|---|---|---|---|---|---|---|
| Smith Douglas Homes (SDHC) | $21.93 | +1.2% | N/A | 12.68 | Reduce | $18.90 |
| Energizer (ENR) | $24.10 | +1.6% | 4.98% | 33.14 | Hold | $31.00 |
| Magnera (MAGN) | $13.88 | +2.4% | N/A | -1.16 | Hold | $17.50 |
Experience
Thomas Hughes has been a contributing writer for InsiderTrades.com since 2019.
- Professional Background: Thomas Hughes is the Managing Partner of Passive Market Intelligence LLC, a market research platform he launched in 2023 with the mission: “We watch the market so you don’t have to.” He has worked as a blogger, stock market commentator, and independent analyst since 2010 and has been actively involved in trading and investing since 2005.
- Credentials: He holds an Associate of Arts in Culinary Technology—training that honed his discipline, attention to detail, and ability to anticipate outcomes, all of which carry over into his work as a market analyst.
- Finance Experience: Thomas has been writing about finance and investing since 2011, when he discovered it could be more than a personal passion—it could be a profession. He’s been a contributing writer for InsiderTrades.com since 2019.
- Writing Focus: He specializes in the S&P 500, small-cap stocks, dividend and high-yield strategies, consumer staples, retail, technology, oil, and cryptocurrencies. His analysis blends chart-based technical setups with key fundamental insights, helping readers identify actionable trends.
- Investment Approach: Thomas takes a hybrid approach that combines technical analysis with deep fundamental research. He often writes about macroeconomic shifts, earnings trends, and sentiment-based trading signals.
- Inspiration: Thomas first became interested in stocks after attending a seminar on how to buy and sell your own shares. That event opened his eyes to the market’s potential and sparked a lifelong interest in investing.
- Fun Fact: Thomas took up model railroading by accident a few years ago—and now he can’t stop running the rails.
- Areas of Expertise: Technical and fundamental analysis, S&P 500, retail and consumer sectors, dividends, market trends
Education
Associate of Arts in Culinary Technology
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