Notable Insider Buys In The Past Week: Beacon Roofing, HD Supply, Scientific Games

Insider buying can be an encouraging signal for potential investors.

Two building materials suppliers saw notable insider buying this past week.

A chairman returned to add more shares to his stake as well.

Conventional wisdom says that insiders and 10% owners really only buy shares of a company for one reason — they believe the stock price will rise and they want to profit. So insider buying can be an encouraging signal for potential investors, particularly with markets near all-time highs.

The following are a few notable insider purchases reported in the past week.

Beacon Roofing

Beacon Roofing Supply, Inc. BECN saw beneficial owner CD&R Investment Associates IX buying some shares again last week. At about $32.08 each, the more than 3.2 million shares reportedly acquired totaled over $102.88 million. That brought this stake to more than 13.75 million shares.

JPMorgan downgraded Beacon Roofing Supply this past week. Its shares were trading at $33.38 each on last look, so the above purchase seems to be well-timed. The stock has changed hands as high as $40 a share in the past year, but the consensus analyst price target is $35.09.

HD Supply

A director at HD Supply Holdings Inc HDS indirectly purchased 600,000 shares of this industrial distributor. At $38.36 to $38.79 a share, that cost this director and activist investor about $23.13 million. It also came after the company announced its intention to split into two independent publicly traded companies.

HD Supply also saw a couple of analyst downgrades last week. The stock was last seen trading at $38.72 a share in a 52-week range of $35.35 to $47.13. The consensus analyst price target was $45.92 on last look, and their consensus recommendation is to hold shares.

Scientific Games

Scientific Games Corp SGMS board chair Ronald Perelman stepped up to the buy window again.

He picked up 100,000 shares of this maker of slot machines and other gaming products at $20.47 to $20.98 apiece last week. The transaction totaled more than $2.08 million, and if followed 200,000 shares Perelman purchased in the previous week.

Last week, the company announced a deal to supply lottery terminals in Italy. The stock closed most recently at $20.81, which is within the purchase price range above. Shares have traded as high as $29.95 in the past 52 weeks, but analysts currently anticipate the price will go to $29.44.

See also: Insider Buying Vs. Insider Selling: What Numbers Really Matter For Traders?

Note that insiders at retailers GameStop Corp. GME and Ulta Beauty Inc ULTA reportedly were buying some shares last week as well.

At the time of this writing, the author had no position in the mentioned equities.

Keep up with all the latest breaking news and trading ideas by following Benzinga on Twitter.

Posted In: NewsInsider Trades

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.