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3 Mid-Cap Stocks Under $20 With Insider Buying and Major Upside

The financial news frequently emphasizes stocks with heavy insider selling, premised on the assumption that insiders believe the stock is overpriced and that they are taking profits ahead of retail investors. However, most of the time, these sales are part of a previously disclosed plan and disclosed to the SEC months in advance.  

This proves the saying that investors have many reasons to sell a stock, but the same is not necessarily true of insider buying. Typically, insiders have only one reason to buy a stock. That is, they believe it's fundamentally undervalued.  

When you combine an undervalued stock with a price below $20, you have a chance for impressive gains. That's the case with the three stocks on this list. Plus, you can factor in the idea that these are mid-cap stocks that offer more potential for growth than more mature large-cap stocks but remove the risk that can be found in unprofitable small-cap stocks. 

Transocean Is Well-Positioned for a Potential Oil Supercycle  

Transocean Ltd. (NYSE: RIG) leases rigs and drilling equipment for oil companies. The company's lease rate directly correlates to the price of oil at the time the contracts are originated. RIG stock is trading at $4.26 as of October 11, 2024.

However, even with a consensus Hold rating, analysts are ...