[Editor's Note: "5 Stocks to Buy With Heavy Insider Buying" is regularly updated to include the most relevant information available.]Over the past several weeks, I have consistently pointed to record-high levels of insider buying as a bullish indicator that it's time for you to start looking for stocks to buy.Why? Two big reasons. Insiders are good at picking bottoms, and they are equally as good at picking winning stocks.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOn the first point, just look at this chart from Bloomberg. Insiders are often early in calling stock market bottoms. But they are seldom wrong. Insiders bought big before the markets turned around in the early 2000s, and before markets bottomed in 2009.On the second point, stocks with heavy insider buying tend to outperform. In an email to InvestorPlace, Andrei Simonov, the chairperson of the Department of Finance at Michigan State University, said, "Insider buying is always a positive signal. Numerous academic papers showed that it is indeed a good signal."One of those academic papers, authored by Nejat Seyhun, a University of Michigan finance professor, showed that stocks with significant insider buying tend to outperform by 5%.With that in mind, let's answer a very important question. What stocks which insiders bought big in May should you be buying right now? * 20 Stocks to Buy If You're Still Betting on America to Thrive Consider these five stocks to buy now, all of which had big insider buying in May: * TransDigm (NYSE:TDG) * Harley-Davidson (NYSE:HOG) * CVS (NYSE:CVS) * Virgin Galactic (NASDAQ:SPCE) * Rent-A-Center (NASDAQ:RCII) Stocks to Buy: TransDigm (TDG)Source: Pavel Kapysh / Shutterstock.com [Note: all insider data is sourced from Finviz.com]As a designer, producer, and supplier of aircraft components, TransDigm has been hit hard amid the novel coronavirus pandemic.Flying demand has screeched to a halt. Against the backdrop of zero demand, airlines aren't ordering new commercial aircraft. TransDigm's commercial aircraft business has been slammed. This pain won't stop anytime soon. TransDigm management is calling for commercial aftermarket sales to drop by 70% to 80% for the rest of the year.But this is a near-term hiccup in what is an otherwise strong growth narrative.Over the next few years, coronavirus fears will fade and economic activity will normalize. Consumers will start flying again. Aircraft component demand will rise again. And TransDigm will get back to growing.All of that is to say that today's dirt-cheap valuation on TDG stock -- 3 times sales versus a five-year-average sales multiple of over 5 -- won't stick around.That's why I'd follow the insiders on this one. Board Director and Managing Director at Berkshire Partners, Robert Small, has bought $125 million worth in May. Fellow Board Director and former CFO of Sherwin-Williams (NYSE:SHW) Sean Hennessy bought $700,00 worth of TDG stock in May.In the long run, those big buys will yield big profits. Harley-Davidson (HOG)Source: Alex Erofeenkov / Shutterstock.com U.S. auto sales have fallen off a cliff as consumers under widespread stay-at-home orders have halted their discretionary spending. This plunge in U.S. auto market demand has caused significant pain for Harley-Davidson.Global retail motorcycle sales at Harley-Davidson dropped more than 20% year-over-year in the first quarter of 2020. HOG stock has dropped nearly 50% year-to-date.The CEO of Harley-Davidson thinks this pain is temporary. On May 8, he bought $2.1 million worth of HOG stock.I think he's right.Over the next few months, the U.S. economy will gradually reopen. As it does, consumer behavior will start to normalize, and discretionary spending will rebound. U.S. auto sales demand will slowly recover. Harley-Davidson's growth trends will improve. HOG stock will bounce back. * 7 Earnings Reports to Watch Next Week In other words, it appears the worst is over for Harley-Davidson. Going forward, things should only get better for both the company and the stock. CVS (CVS)Source: Jonathan Weiss / Shutterstock.com As a brick-and-mortar focused retailer, CVS has exposure to stay-at-home headwinds because consumers simply aren't going out and spending as much money at physical locations as they used to.For that reason, CVS stock has shed 16% this year.But the company just reported strong first-quarter numbers which handily topped expectations and included healthy revenue and operating profit growth. Perhaps more importantly, management reiterated its full-year profit guide on the basis that Covid-19 isn't creating huge financial disruption for the company.Does that mean it's time to buy the dip in CVS stock?I think so. So do insiders. Alan Lotvin, the president of CVS Caremark, bought $315,000 worth of CVS stock in mid-May.Over the next few months, economic activity will gradually normalize and CVS' already resilient growth trajectory will only improve. As it does, CVS stock will rebound back to where it was at the beginning of the year, if not higher. Virgin Galactic (SPCE)Source: Tun Pichitanon / Shutterstock.com Once one of the hottest and most hyped-up stocks in the market, commercial spaceflight company Virgin Galactic has seen the air come of out its wheels over the past few months.Specifically, the coronavirus pandemic has presumably (yet again) delayed the launch of Virgin Galactic's first commercial space flight, which was previously supposed to happen in 2020. Because a lot of the hype surrounding the company was based on its ability to finally commence commercial operations in 2020, this delay has weighed significantly on SPCE stock, which has fallen from $43 to $15 in matter of months.Insiders are buying the dip.Since May 11, four insiders -- including the CEO and COO -- have collectively bought $240,000 worth of SPCE stock.In the long run, those buys will yield big rewards.Virgin Galactic is a pioneer in the commercial space market, which is expected to grow from $350 billion today, to $1.1 trillion by 2040. Over that stretch, Virgin Galactic will turn into a really big company, powered by a niche but high-demand commercial spaceflight business and the development of hypersonic air travel technology (which could be used to replace planes at scale). * 9 Stocks to Buy as People Are Still Stuck at Home In other words, as the space economy booms over the next two decades, SPCE stock will roar higher. Against that long-term backdrop, today's coronavirus-related weakness is nothing more than a buying opportunity. Rent-A-Center (RCII)Source: dennizn / Shutterstock.com Last, but not least, on this list of stocks to buy with heavy insider buying is Rent-A-Center.As a rental equipment retailer, Rent-A-Center was initially seen on Wall Street as a big loser amid the coronavirus pandemic because of physical store closures. RCII stock dropped from $31 in late January, to $12 by March.Then, Wall Street started to think that a discount-focused, rental-oriented equipment retailer like Rent-A-Center may actually win during Covid-19, because tight budgets will push consumers away from buying big-ticket items and towards renting them.Rent-A-Center's first quarter numbers confirmed that this is the case. The company reported positive revenue and comparable sales growth in the quarter, and commented that April sales trends have been quite strong, led by out-sized gains in the e-commerce business.Over the next few months, the economy will gradually re-open (providing support for more consumer discretionary spend). But consumers will be cautious with their spend because of the huge job loss the economy has suffered (thereby providing support for more consumer discretionary spend on discount, rental items).As such, Rent-A-Center's growth trends should only get better as we head into the back-half of 2020. As they do, RCII stock will keep rallying.Insiders apparently agree. In May, two Board Directors purchased nearly $800,000 worth of RCII stock.I say follow those insiders, and stick with this rally for the foreseeable future.Luke Lango is a Markets Analyst for InvestorPlace. He has been professionally analyzing stocks for several years, previously working at various hedge funds and currently running his own investment fund in San Diego. A Caltech graduate, Luke has consistently been recognized as one of the best stock pickers in the world by various other analysts and platforms, and has developed a reputation for leveraging his technology background to identify growth stocks that deliver outstanding returns. Luke is also the founder of Fantastic, a social discovery company backed by an LA-based internet venture firm.  As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * America's 1 Stock Picker Reveals Next 1,000% Winner * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post 5 Stocks to Buy With Heavy Insider Buying in May appeared first on InvestorPlace.

Harley-Davidson CEO Jochen Zeitz and Chief Financial Officer John Olin bought the embattled motorcycle maker’s shares last week.

Harley-Davidson Inc is reopening its factories this week at lower production rates and sending dealers a narrower range of motorcycles, the Wall Street Journal reported on Wednesday. The U.S. motorcycle maker, which closed its U.S. assembly plants in March due to the coronavirus outbreak, may not ship any additional new motorcycles this year to about 70% of its 698 dealers in the country, the report said (subscription required). Harley would reopen its plants in Wisconsin and Pennsylvania and accelerate production in phases that would be limited to bestselling models and palette of colors and without customizable features for the remainder of the year, the report added.

Shares of Harley-Davidson (NYSE: HOG) were down 6% in morning trading Monday as the stock indexes opened lower following gains last week. There was no news specific to the motorcycle maker, but it had benefited from a minor rally last week following the permanent appointment of Jochen Zeitz to the positions of president and CEO. The market may be realizing Harley-Davidson still faces a substantial uphill battle, regardless of who is running the show.

The trio of developments apparently gave investors cause to believe consumers might begin shelling out big bucks for expensive motorcycles again. Harley-Davidson investors have some reason to believe new CEO Jochen Zeitz can lead the motorcycle maker's turnaround. While he hasn't provided much detail on where he was taking the company, hints suggest the turnaround plan would point the company in a better direction than it was heading.

The U.S. motorcycle maker, which closed its U.S. plants in March due to the coronavirus outbreak, may not ship any additional new motorcycles this year to about 70% of its 698 dealers in the country, the report said https://on.wsj.com/2Tn92JP. The company did not immediately respond to Reuters request for comment. Harley would reopen its plants in Wisconsin and Pennsylvania and accelerate production in phases that would be limited to bestselling models and palette of colors and without customizable features for the rest of the year, the report said.

The iconic motorcycle maker is paring back production, rather than pricing, in an effort to foster an image of exclusivity.

Shares of Harley-Davidson (NYSE: HOG) were rising 6.5% heading into midday trading Wednesday after The Wall Street Journal reported the motorcycle maker was planning to considerably reduce shipments to dealers as it restarts production. Harley has suffered through five years of falling sales, which former CEO Matt Levatitch sought to reverse by committing to developing hundreds of new models over the next decade at various price points, with many intended for foreign markets. Recently appointed CEO Jochen Zeitz has committed to a smaller lineup of bikes to be introduced with the start of the riding season, beginning next year.

The Milwaukee-based motorcycle company shut down production in March after an employee at its factory in Menomonee Falls, Wisconsin, tested positive for the coronavirus.

As Harley-Davidson rounds year one on its electric debut, we’re still riding in the fog on how to evaluate the company’s EV pivot. The American symbol of gas, chrome and steel released its first production electric motorcycle, the LiveWire, last fall. The $29,799 machine leads a future line-up of EVs planned by Harley-Davidson — spanning motorcycles, bicycles and scooters.

Shares of Harley-Davidson (NYSE: HOG) notched another trading gain on Thursday, its fifth up day out of the last six, as it rose almost 4% to close at $23.58 per share. The motorcycle maker's stock has surged 65% since hitting a low of $14.31 on March 23, and while the market itself has largely made strong gains since then, there is hope that new CEO Jochen Zeitz has the wherewithal to turn around Harley-Davidson's five-year sales decline by focusing more intently on the company's core business. While there was seemingly no specific news to cause Harley's stock to jump yet again, Barron's reported that Zeitz and CFO John Olin recently made open-market purchases of the bike maker's stock.

Another day, another rally for Harley-Davidson (NYSE: HOG), which is up almost 10% heading into midday trading on Tuesday. The motorcycle king's stock has been surging since mid-May, gaining over 40% in two weeks' time on little to no news, other than that it would restart limited bike production and ship fewer new models to dealers. A lot of the optimism exhibited in Harley-Davidson's rising stock seems grounded in its having been beaten down too far.

You've got to hand it to Federal Reserve Chairman Jerome Powell -- this guy really knows how to spook a stock market. On Wednesday, the Fed chair warned investors, who have been hoping -- planning even -- on a V-shaped recovery from the recession just as soon as the COVID-19 shutdown is over, that they may have to wait a bit longer for things to improve. "Recovery may take some time to gather momentum," warned Powell, and while that's happening, "the passage of time can turn liquidity problems into solvency problems."

Shares of Harley, which were down 47% this year as of last close, rose 5% to $20.6 in morning trade. Zeitz, a former CEO hailed for turning around German footwear brand Puma's near-bankrupt business, is known to have led a push for sustainability at Harley and was a force behind Harley's LiveWire, the company's first electric bike. The company said Zeitz, who joined the Harley board in 2007, will continue to serve as the board chairman.

Susquehanna analyst Sam Poser reiterated a Hold rating on Wolverine World Wide (NYSE:WWW) on Wednesday, setting a price target of $18, which is approximately 3.69% below the present share price of $18.69.

Zeitz paid $2.1 million for the embattled shares of the maker of iconic motorcycles the day after he was named CEO.

The motorcycle maker appointing a new president and CEO might not be the good news it seems, though.

Harley-Davidson (NYSE: HOG) continues to benefit from the goodwill surrounding the permanent appointment of Jochen Zeitz as president and CEO. Because Zeitz is seen as a turnaround specialist, investors may be seeing Harley-Davidson as more likely now to reverse its secular decline. Zeitz was reportedly a driving force behind the bike maker's LiveWire electric motorcycle.

(Bloomberg) -- Harley-Davidson Inc.’s acting chief executive officer will take over the job permanently after winning over investors and analysts with a plan to narrow the motorcycle maker’s ambitions to focus on its strengths.Jochen Zeitz, a board member and former CEO of sporting-goods maker Puma SE, took over the top job in February following the departure of Matt Levatich, who stepped down after overseeing a five-year stretch of falling U.S. sales. Zeitz, 57, will also remain chairman of the board.“Over the next few months, we will rewire the business and define a new five-year strategic plan later this year,” Zeitz said in a statement Thursday. “I will then oversee the implementation of these changes and reignite Harley-Davidson as one of the most revered and iconic brands in the world.”Harley shares surged last week after Zeitz said he would dial back his predecessor’s turnaround plan to focus on expanding U.S. ridership, on profitable bikes such as the Adventure Touring and Streetfighter models, and on electric motorcycles. The strategy echoes the demands an activist investor, Impala Asset Management, made earlier this year.Harley’s stock rose as much as 6.3% as of 9:50 a.m. Thursday in New York.(Updates with the shares trading in the last paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

By Geoffrey Smith