(MONEY Magazine) – Wouldn't you love it if company execs called you any time their firm's internal projections exceeded Wall Street's expectations? Well, insiders can't do that legally, but they can do something that may tip you off. They can buy their own shares.

Whenever a company insider--which is any person in a policymaking position--buys or sells any shares, the company must disclose the trade to the Securities and Exchange Commission. "When you see a number of insiders buying, it almost always means they expect the shares to rise," notes Bob Gabele, editor of the weekly newsletter the Insiders' Chronicle ($395; 800-243-2324), which keeps track of insider activity.

MONEY asked Gabele to identify companies in which three or more top honchos recently bought shares. Then to check that fundamental analysis matched management opinion, we asked Wall Street analysts for their outlook on the companies. Three stocks stood out:

--Citation Corp. (CAST; recently traded on NASDAQ at $13; no yield). In the past 18 months, this $487 million Birmingham manufacturer of cast-iron auto parts has expanded and modernized its flagship plant and acquired Interstate Forging for $70 million, getting into the forging business in the process. Between last July and December, insiders bought a total of 143,500 shares. How come? Mark Hughes, an analyst with Equitable Securities, thinks it may have something to do with Citation's growth prospects. He estimates that the broader product mix will help earnings accelerate 20% annually over the next three years, driving the share price to $18 within 12 months for a 38% return.

--Morningstar Group (MSTR; NASDAQ, $23.75; no yield). This $370 million Dallas specialty food maker (no relation to the mutual fund research service) has been enjoying 20% annual earnings hikes since a new management team took over in 1994. Corporate insiders seem to anticipate continued growth: Three bought a total of 38,000 shares last November. Meanwhile the firm is chowing down rivals like Presto Foods, which it bought last year for $134 million. Bill Leach, an analyst at Donaldson Lufkin & Jenrette, pegs Morningstar at $29 in the next 12 months, a 22% jump.

--Promus Hotels (PRH; NYSE, $32.50; no yield). Memphis-based Promus manages and franchises Embassy Suites, Hampton Inn and Homewood Suites, and in the past two quarters insiders bought 426,000 shares. The company's unconditional-satisfaction guarantee, strict quality controls and reasonably priced quarters have kept its 107,000 hotel rooms 73% full--compared with a 65% occupancy rate for the industry. That in turn has lined up a stream of eager franchisers. Prudential Securities analyst Joseph Coccimiglio thinks earnings will climb 20% annually over the next two years, which could bump the stock up 20% in 12 months, to $39. --A.W.