Although U.S. stocks closed higher on Tuesday, there were a few notable insider trades.

When insiders purchase shares, it indicates their confidence in the company's prospects or that they view the stock as a bargain. Either way, this signals an opportunity to go long on the stock. Insider purchases should not be taken as the only indicator for making an investment or trading decision. At best, it can lend conviction to a buying decision.

Below is a look at a few recent notable insider purchases. For more, check out Benzinga's insider transactions platform.

Verrica Pharmaceuticals

• The Trade: Verrica Pharmaceuticals Inc. (NASDAQ:VRCA) 10% owner Joseph Edelman acquired a total of 1,233,931 shares an average price of $5.63. To acquire these shares, it cost around $6.94 million.
• What's Happening: Verrica Pharmaceuticals' development and commercialization partner, Torii Pharmaceutical Co Ltd, reported topline results from its Phase 3 trial of TO-208 (referred to as VP-102 and marketed as Ycanth in the U.S.) for the treatment of Molluscum Contagiosum in Japan.
• What Verrica Pharmaceuticals Does: Verrica Pharmaceuticals Inc is a dermatology therapeutics company engaged in the development and commercialization of novel treatments that provide a meaningful benefit for people living with skin diseases.

First Merchants

• The Trade: First Merchants Corporation (NASDAQ:FRME) Director Michael Fisher acquired a total of 1,380 shares at an average price of $36.38. To acquire these shares, it cost around $50,204.
• What's Happening: On Oct. 26, First Merchants posted downbeat quarterly sales.
• What First Merchants Does: First Merchants Corp, through its subsidiaries, provides its customers with financial services delivered locally by bankers.

Don't forget to check out our premarket coverage here

Pfizer

• The Trade: Pfizer Inc. (NYSE:PFE) Director Scott Gottlieb bought a total of 3,000 shares at an average price of $26.47. To acquire these shares, it cost around $79,401.
• What's Happening: Truist Securities analyst Robyn Karnauskas, last week, reiterated a Buy rating on Pfizer, lowering the price target to $36 from $42.
• What Pfizer Does: Pfizer is one of the world's largest pharmaceutical firms, with annual sales close to $50 billion (excluding COVID-19 product sales).

Texas Community Bancshares

• The Trade: Texas Community Bancshares, Inc. (NASDAQ:TCBS) Director Anthony Scavuzzo bought a total of 33,000 shares at an average price of $12.97. The insider spent around $428,010 to buy those shares. The company's another Director also bought 1,300 shares of the company.
• What's Happening: Texas Community Bancshares, last month, authorized a new stock repurchase program.
• What Texas Community Bancshares Does: Texas Community Bancshares Inc is a full service bank.

Check This Out: Wall Street's Most Accurate Analysts Say Hold These 3 Utilities Stocks With Over 5% Dividend Yields