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Notable Insider Buys: Bausch, TransDigm And More

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Notable Insider Buys: Bausch, TransDigm And More
  • Insider buying can be an encouraging signal for potential investors.
  • Directors stepped up to make sizable share purchases last week.
  • Some of those transactions came in the wake of earnings reports.

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 from it. So insider buying can be an encouraging signal for potential investors, particularly during periods of uncertainty.

Insiders continued to add shares despite overall market volatility and global economic gloom.

Here are some of the most noteworthy insider purchases reported in the past week.

TransDigm

A TransDigm Group Incorporated (NYSE: TDG) director indirectly added almost 372,000 shares of this aircraft component maker to his stake. At per-share prices ranging from $309.87 to $354.34, that totaled more than $125.18 million. Note that another director purchased 2,000 shares in the previous week.

The company posted better than expected fiscal second-quarter earnings earlier this month. The stock ended last week's trading at $325 per share, still within the director's purchase price range. The share price is only up 3% or so since its year-to-date low in March.

Bausch Health

Bausch Health Companies Inc (NYSE: BHC) saw a director indirectly purchase nearly 5 million shares of this specialty pharmaceutical company last week at between $15.85 and $17.50 a share. That cost that director more than $83.25 million and raised his stake to almost 25.85 million shares.

This Canada-based company priced and upsized a previously announced stock offering last week. The shares ended last week down over 6% to $15.74. That's below the director's purchase price range. However, the stock is up about 7% from the year-to-date low seen in March.

Aon

A director at Aon PLC (NYSE: AON) stepped up to the buy window in the wake of better than expected first-quarter results posted at the start of the month. The director indirectly bought 70,000 shares midweek for $195.00 apiece, which totaled $13.65 million. This raised his stake to 100,000 shares.

Shares of this London-based professional services firm closed most recently at $191.67 a share. That's below the above purchase price. It's also more than 31% higher than the year-to-date low during the pandemic panic selling back in March.

In addition, note that there was some amount of insider buying at Boston Properties, Inc. (NYSE: BXP), General Motors Company (NYSE: GM), Harley-Davidson Inc (NYSE: HOG) and Penn National Gaming, Inc (NASDAQ: PENN) and last week as well.

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