Insider buying was solid in January, including dividend-paying names like Lakeland Industries (NASDAQ: LAKE), York Water (NASDAQ: YORW), and RLI Corp (NYSE: RLI). These stocks are not only the most bought dividend stocks insiders bought but the most bought for the month, news that raises the question of whether they are good buys for 2025.
Lakeland Industries Built Value for Investors in F2024
Lakeland Industries owns and operates a portfolio of brands spanning the industrial and public safety sectors. Products range from fire and chemical fighting protective suits to aprons, smocks, and reflective clothing. The company’s growth pace is erratic but strong, impacted by the timing of projects, but averaging in the high teens since mid-2022. Its insiders have only bought stock for several years, including January 2025, and the activity is noteworthy because it is ramping higher. The one-month total is the highest in over three years and roughly 50% greater than the previous spike. Insiders that bought include a directory, the CEO, the CFO, and the COO. They and other significant insiders own 4.2% of the stock.
Institutional activity is also bullish for this market. The institutions sold on balance in Q3 of 2024 but reverted to buying in Q4 and ramped the pace in January. January buying is more than 40% greater than Q4 2024, and activity will likely remain strong in Q1 2025 and the year. The company’s rapidly improving profitability and financial health are why. There is some risk of dilution, but the impact is small, and the cash will help sustain the fortress balance sheet while the company invests in growth. Balance sheet highlights include a declining cash position offset by increased inventory, current and total assets, and increased shareholder equity.
York Water Insiders Buy Stock in January
York Water is a water utility in New York paying a more substantial and reliable yield. Its 2.8% yield is worth about 57% of the 2025 earnings outlook and has been reliably paid for almost 30 years. The company amounts to a Dividend Aristocrat due to its earnings quality and history. The outlook for growth and balance sheet suggests it can sustain annual increases for many more years.
York Water is well-known as a stock that insiders buy. Insiders have only purchased this stock for years but tend to do so in small amounts, accumulating little more than 1% of shares in total. Insiders who bought stock in January included the CEO, CAO, and CFO, who purchased about $11,000 worth together. Institutional activity is more substantial, with the group netting more than $600,000 in shares for the month. They own about 50% of the company and show a high conviction, having bought on balance for seven of nine consecutive quarters. InsderTrades.com tracks no analysts with ratings on York Water.
RLI Corp Insiders Buy Big in January
RLI Corp. is a property & casualty insurer with significant insider buying. January buying is significant because of the insider history and size of purchases, which includes little activity until January, primarily selling, and a massive spike in volume. January buying is more than the value of all insider buying for the preceding two years and boosted insider holdings to nearly 5% of the company. Insider buying is compounded by institutional trends, which include net bullish activity for six consecutive quarters and almost 78% ownership. January buyers include a diverse group of small, medium, and large institutions representing public and private investment capital.
Analysts rate RLI Corp as a Hold and see it advancing in 2025. The consensus estimate implies a 10% upside in early February, with potential for a new all-time high at the high-end range. The risk for investors is that concern about slowing growth has dampened sentiment. However, earnings growth is still expected and underpins a robust capital return outlook. The company pays less than 25% of its earnings, the stock yields more than 3.5%, and distribution growth outpaces inflation annually.
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