Insider activity is hot in names like Vestis (NYSE: VSTS), OPKO Health (NASDAQ: OPK), and Greif, Inc. (NYSE: GEF), and investors should take notice. From board members to CEOs, CFOs, and other corporate officers, insiders are buying these stocks en masse, signaling a higher-than-average conviction in the share price outlook.

The question for investors is if these stocks are a good buy for 2025 and how high their share prices may go. In two cases the answer is quite high because the support of analysts, institutions, and retail investors is strong. In the other, investors may want to avoid the stock because the risk of dilution is great. Here’s why. 

Vestis Corporation on Track for a Takeover

Vestis Corporation is the former uniform segment of Aramark spun off in late 2023. The company is equal in size to peer UniFirst but less than a third of the size of industry leader Cintas, which makes it a potential merger or buyout target. The uniform industry remains fractured despite years of consolidating. Cintas is a potential buyer who has yet to enter the mix. As it is, several buyout firms have expressed interest, but no firm offers are on the table. 

Insiders have been buying Vestis throughout 2024, making it the most bought stock by corporate executives. Nine insiders made 14 purchases during the year, bringing their total holding to over 13%. This is compounded by a high institutional ownership of nearly 98% in late December 2024.

Institutions have also bought netting shares in CQ1, Q2, and Q3 this year. The largest shareholder is the activist hedge fund Corvex Management. Corvex made several purchases in 2024, owns more than 13% of the stock and may continue to buy in 2025. 

Insiders' and institutional interest in Vestis is linked to the business's cash flow potential. Cintas is an example of a company capable of sustaining dividend payments, distribution increases, share buybacks, and a fortress balance sheet while reinvesting and self-funding growth.

Vestis pays a healthy dividend that is less than 25% of its earnings and has a solid balance sheet. It hasn’t yet repurchased significant shares but may begin to do so if it is not taken over or private. 

OPKO Health Has Numerous Catalysts Ahead

OPKO Health has numerous catalysts that could send its share price rocketing in 2025. However, the company’s capital position is questionable, and it may not have the funds to continue without a positive development. Those could include approvals for its key therapy, acquisition, and normalization of the diagnostic business. Analysts are optimistic, so there is hope. MarktBeat.com tracks three analysts with current ratings; they peg the stock at Buy and see it advancing by 90% at the consensus. 

Risk includes shareholder dilution that insider buying is only partially offsetting. 2024 insider activity includes 24 purchases by seven insiders, making it the second most bought stock for the year. However, the company share-sales to raise capital increased the count by more than 32%. The company has since issued a share repurchase authorization, but the $100 million is insufficient to offset the damage, and more sales may come. 

Greif Insiders Put a Floor in the Market

Greif, Inc. is an industrial services company specializing in packaging. Its share price has been volatile over the past two years but shows a solid bottom near $60. That bottom is reinforced by insider activity, which has been buying the stock in the range’s low end and selling at the high. Insiders buying include the CEO, CFO, and several directors.

The insider selling is a senior VP; his transactions were early in the year and aligned with share-based compensation, so there is no red flag for investors. Insiders own about 3% of this industrial packaging company. 

Institutional activity adds to the volatility in 2024. Institutions own about 50% of the stock; their activity in 2024 aligns with buying in the low-end range and selling in the high. Activity in Q4 is bullish and ramping higher, confirming the floor and suggesting another rebound in the stock price will follow. 

Analysts also indicate a stock price rebound. Marketbeat tracks seven analysts who peg the stock at a consensus of Moderate Buy and view it as a deep value, trading below the lowest price target. A move to match the analyst's lowest target is worth about 10% of the upside with shares near their floor; a move to the consensus would add another 20%.

A possible catalyst for this move is 2025 results, which are expected to include a wider margin.