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Insider Buying Signals Potential Rally for Etsy and Others

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  Published in Stocks and Investing on Thursday, February 19th 2026 at 19:38 GMT by CNBC
      Locales: Delaware, California, Texas, UNITED STATES

Friday, February 20th, 2026 - The stock market often looks for signals, clues that might indicate future performance. One widely watched indicator is insider buying - when company executives purchase shares of their own company's stock. This action is frequently interpreted as a vote of confidence, suggesting those with the most intimate knowledge of the business believe its valuation is currently below its potential.

CNBC's Active Investor recently highlighted a compelling trend: several stocks have experienced positive momentum following significant insider purchases. The report focused on three companies - Bath & Body Works (BATH), Paramount Global (PARA), and Ross Stores (COST) - all of which saw their stock prices rise after respective executives demonstrated their belief in the company's future by investing their own capital. But the question now is: can this bullish pattern continue? Active Investor has pinpointed Etsy (ETSY) as a potential fourth candidate to benefit from this positive trend.

The Recent Wave of Insider Confidence

The data reveals a clear pattern in early February 2026. Laura Dalton, Executive VP and General Manager of Beauty at Bath & Body Works, invested $101,609 in BATH shares on February 1st. Shortly thereafter, on February 10th, Paramount Global Director Ronald Dodaro made a $100,000 purchase of PARA stock. And on February 11th, Ross Stores Director Barbara Rentler put $172,457 into COST shares.

While correlation doesn't equal causation, the timing of these purchases before subsequent stock increases has caught the attention of investors. It's a psychological factor as much as a financial one. When those 'in the know' put their money on the line, it often encourages others to follow suit. This increased demand can create upward pressure on the stock price.

Etsy: Poised to be the Next Beneficiary?

Active Investor is now focusing on Etsy (ETSY), noting a recent insider purchase by CEO Josh Silverman. Silverman invested $166,828 in ETSY shares on February 12th, further fueling speculation that the company is on the cusp of a potential rally.

This purchase isn't happening in a vacuum. Etsy's latest earnings report revealed encouraging signs of progress. Notably, the company achieved a gross margin of 77.7%, exceeding analyst expectations. This demonstrates an improving ability to control costs and maximize profitability - a key metric for investors. The platform's unique position within the handmade and vintage goods market continues to draw a loyal customer base, but competitive pressures from larger e-commerce giants remain a constant challenge.

Analyzing the Potential for Continued Growth

Active Investor suggests that Etsy's future success hinges on two key strategies: enhancing the platform experience for both buyers and sellers, and further strengthening the ecosystem that supports its independent seller community. Improvements to the user interface, search functionality, and overall ease of navigation could attract more customers. Simultaneously, providing sellers with better tools for marketing, inventory management, and customer service will empower them to grow their businesses, which in turn benefits Etsy.

However, it's crucial to remember that insider buying isn't a foolproof predictor of stock performance. Numerous factors influence a company's success, including macroeconomic conditions, industry trends, and competitive landscape. An executive buying shares might simply be rebalancing their portfolio, or believe the stock is unfairly beaten down and represents a value play, even if a full-scale recovery isn't imminent. It's also possible that an insider purchase is offset by sales from other executives or major shareholders.

The Broader Implications of Insider Trading (Legal and Ethical)

It's important to distinguish between legal insider trading, such as the purchases highlighted in this article, and illegal insider trading, which involves trading on material non-public information. The purchases discussed are publicly disclosed and adhere to regulatory requirements, ensuring transparency and fairness. Illegal insider trading is a serious offense with significant penalties.

Investor Takeaway

The recent wave of insider buying at Bath & Body Works, Paramount Global, Ross Stores, and potentially Etsy, provides a fascinating snapshot of executive sentiment. While not a guarantee of future success, it's a signal worth noting. Investors should conduct their own thorough research, considering all relevant factors before making any investment decisions. The trend highlights the importance of paying attention to the actions of those closest to the company, but emphasizes that informed due diligence is always paramount.

Disclaimer: This article is for informational purposes only and should not be considered investment advice. All investments carry risk, and past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making any investment decisions.