Insider buying has been remarkably scarce in recent months. Top executives across corporate America appear hesitant to commit their own capital in the open market. This reluctance can be attributed to a mix of uncertainty around fiscal policy, questions about the Federal Reserve's next steps on interest rates, and persistent concerns about valuation levels in a market that remains near its highs. Historically, insider buying has been a reliable signal of confidence. When it dries up, it often reflects caution in the C‑suite. That is why the few purchases we have seen recently deserve attention.
Last week, two such transactions stood out not just for their size, but for their rarity. Henry Fernandez, the long‑time Chairman and CEO of MSCI Inc. (Ticker: MSCI) made a substantial purchase of his company's stock. At the same time, Yogesh Gupta, CEO of Progress Software, and independent director David Krall, both stepped into the market to add to their stakes. These are not routine transactions. They are meaningful signals in an environment otherwise defined by insider silence.
Henry Fernandez's purchase was particularly notable. On July 24 and 25, he acquired 12,400 shares of MSCI at prices between $535 and $550, committing roughly $6.7 million of his own money. This was the largest insider purchase at MSCI in at least a year and raised his direct ownership to approximately 1.28 million shares.
MSCI is a company with an enviable position in the financial world. Its index division provides the benchmarks for trillions of dollars in exchange‑traded funds and institutional portfolios. Whenever money flows into an MSCI‑tracked ETF, the firm collects a slice. This high‑margin, fee‑based model produces a steady and predictable revenue stream. Beyond its index business, MSCI offers a robust analytics platform, ESG and climate data solutions, and real estate analytics through its private assets segment. In effect, MSCI has become the backbone of many institutional investment processes, collecting recurring revenue from some of the largest asset managers in the world.
The company's second quarter results, released July 22, underscore why Fernandez might be confident. MSCI reported $772.7 million in revenue, up 9 percent from the prior year, with earnings per share of $4.17, a figure that exceeded Wall Street estimates. Its net margin remained near 40 percent, a level that few firms can match. Return on equity hovered above 20 percent, reflecting both profitability and efficient capital use. Analysts, for their part, continue to assign price targets clustered around $650 to $680, suggesting meaningful upside from the current price of roughly $560.
From a valuation perspective, MSCI trades at about 36 times earnings, a premium multiple that reflects the company's dominant competitive position, high switching costs for clients, and durable revenue growth. While not cheap by traditional metrics, Fernandez's multimillion‑dollar purchase indicates he views today's valuation as attractive relative to the company's long‑term prospects.
The other notable activity came from Progress Software, a mid‑cap technology firm with a market capitalization of roughly $2.2 billion. On July 23, CEO Yogesh Gupta purchased 2,100 shares at about $49 per share, committing just over $103,000. On the same day, independent director David Krall made a larger buy of 5,125 shares at roughly $48.90, spending around $250,600. Krall's purchase marked the largest insider buy at Progress Software in more than a year, increasing his stake by roughly 11 percent.
Progress Software occupies a specialized but vital niche in enterprise technology. The company's platforms and tools help businesses modernize legacy systems, develop and deploy applications, manage secure data transfers, and monitor digital experiences. Its suite includes widely used products such as OpenEdge, MOVEit, Sitefinity, WhatsUp Gold, and Kemp LoadMaster. These offerings have become critical for organizations undergoing digital transformation, especially in sectors where reliability and security are paramount.
Recent financial results have been encouraging. In its most recent quarter, Progress reported $152.6 million in revenue, up nearly 40 percent year over year, and earnings per share of $1.18, which exceeded analyst expectations. Management also raised full‑year guidance, reflecting confidence in continued growth. The company has pursued strategic acquisitions, including Kemp Technologies, to broaden its reach in application delivery and load balancing.
What makes the Gupta and Krall purchases particularly significant is the broader backdrop. Over the past six months, insider activity at Progress had leaned heavily toward selling, with executives such as the CFO and CIO reducing their positions. Against that trend, the CEO and a long‑time director have stepped in as buyers. Analysts are also constructive, with DA Davidson and Wedbush assigning "Buy" or "Outperform" ratings and setting price targets around $75. Guggenheim has gone further, projecting a target in the low $80s. At current levels around $50, that implies substantial potential upside.
From a valuation standpoint, Progress trades at around 37 to 38 times trailing earnings, though forward multiples drop closer to 28 times as projected earnings growth kicks in. While insider ownership remains modest at roughly 1.1 percent of outstanding shares, these recent purchases highlight management's confidence in the company's trajectory.
When insider buying dries up, investors should pay attention to the exceptions. Fernandez's $6.7 million purchase at MSCI and the coordinated Gupta‑Krall buys at Progress Software are exactly that—exceptions worth noting. Both companies operate in sectors with high switching costs, recurring revenues, and durable demand. Both have delivered strong recent results, and both face bright growth prospects.
In an environment where most insiders remain cautious, these transactions stand out as expressions of conviction. They may not guarantee short‑term gains, but they do signal that two experienced management teams see value in their businesses even as the broader market treads carefully.
For investors looking for cues amid the noise, these are rare signals worth watching.
