Insiders Bet Big on These 3 Stocks: SRRK, KMX, SPWH

Scholar Rock Holding (NASDAQ: SRRK), a clinical-stage biopharmaceutical company focusing on diseases where protein growth factors play a central role, has received a massive vote of confidence from Director Srinivas Akkaraju. In early October, Akkaraju made three separate purchases totaling over $18.8 million, including an initial buy worth $14.44 million followed by additional purchases of $697.71k and $3.67 million. What makes this particularly significant is that Akkaraju, while a non-employee director, possesses deep biotech credentials, and his purchases represent a stark contrast to previous insider activity that consisted primarily of planned sales by other officers and directors.

The timing of these substantial buys appears directly linked to promising Phase 3 SAPPHIRE clinical trial data for apitegromab, the company’s lead candidate. The data showed statistically significant improvements in motor milestones for patients, positioning the treatment for potential approval in both European and U.S. markets next year. For a company that currently generates revenue primarily through collaboration and licensing agreements rather than commercial products, successful drug approval could represent a transformative event that justifies the director’s multi-million dollar bet on SRRK’s future.

CarMax (NYSE: KMX), America’s largest used-car retailer, has experienced a challenging period with its stock declining 45% year-to-date, continuing a volatile pattern that began in 2021. Despite this bearish sentiment, insiders are demonstrating conviction by purchasing shares against the prevailing trend. Director Oneil Mark F bought $499.81k worth of shares on October 2, while Director Steenrod Mitchell D purchased $91.14k on the same day. These moves suggest that management sees value where the broader market sees only uncertainty.

The insider confidence appears grounded in several fundamental improvements. CarMax has successfully reduced inventories from $3.94 billion at the start of the year to $3.15 billion in the most recent quarter, indicating better inventory management amid challenging market conditions. Furthermore, the Federal Reserve’s rate cut in September and two additional planned cuts this year could provide significant tailwinds for CarMax Auto Finance operations and consumer purchasing power. While the company withdrew its long-term unit-growth algorithm earlier this year, citing market uncertainty, these insider purchases indicate that management believes the worst may be over and that a recovery could materialize in 2026-2027.

Sportsman’s Warehouse Holdings (NASDAQ: SPWH), a specialty retailer focused on outdoor recreation gear, has witnessed a flurry of insider buying activity that suggests executives believe the company has turned a corner. In early October, Director Mcbee Richard D purchased $61.75k of stock, while CEO Stone Paul made two separate buys totaling $188.36k. Director Tucci Michael D joined the buying spree with a $140.5k purchase, bringing the total insider investment to nearly $400,000 within a two-day period.

The concentrated buying activity indicates that management believes the worst of the margin squeeze and liquidity concerns are behind the company. The stock has already surged 219% from its trough, suggesting the market is beginning to recognize the turnaround potential. As a penny stock, Sportsman’s Warehouse offers the possibility of multibagger returns if management can successfully execute its new merchandising strategy and continue the recovery trajectory. The insider purchases suggest that current share prices may still discount an outcome far worse than what executives now expect, presenting potential opportunity for investors who share management’s optimism.

The concentrated buying across these three diverse companies—Scholar Rock in biotech, CarMax in automotive retail, and Sportsman’s Warehouse in specialty retail—demonstrates that insider conviction can transcend sector boundaries. Legal insider purchases, properly disclosed to the Securities and Exchange Commission, provide transparent windows into how those with the deepest understanding of a company’s prospects are positioning their personal capital. The public availability of these trades through SEC filings makes them accessible to all investors seeking to align their strategies with corporate insiders.

Historical research supporting the 6% to 10.2% annual outperformance of stocks with significant insider buying underscores why these signals merit attention. While insider selling can occur for various personal reasons, substantial buying typically reflects genuine confidence in a company’s future prospects. For investors monitoring SRRK, KMX, and SPWH, the recent insider activity provides compelling data points suggesting that those with the most intimate knowledge of these companies see substantial upside ahead, despite whatever challenges may be apparent to outside observers.