- Insider buying can be an encouraging signal for potential investors.
- A CEO took advantage of a secondary offering last week.
- A CFO also stepped up to the buy window.
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 a few of the most noteworthy insider purchases reported in the past week.
Keurig Dr Pepper
Keurig Dr Pepper Inc KDP saw an executive and a director purchase nearly 127,900 shares altogether. At per-share prices between $28.00 and $28.60, that totaled more than $3.64 million. Note that 10% owner JAB Holdings bought 7.38 million shares back in May.
Keurig said last week that its largest shareholder, a JAB subsidiary, will convert part of its stake into 143 million shares. Shares rose almost 2% before last week's sell-off and ended the week down about 2% at $28.12 apiece. The share price is still up about 20% since the year-to-date low during the pandemic panic selling seen back in March.
The chief financial officer at Change Healthcare Inc CHNG stepped up to the buy window last week. He picked up 100,000 shares via trust of this Nashville-based health care technology company for $12.00 apiece. That cost him $1.20 million, and it lifted his stake to 140,000 shares.
The company posted better-than-expected quarterly results earlier this month. The stock retreated more than 14% last week and closed most recently at $10.59 a share, below the insider's purchase price. Yet, the stock is more than 36% higher than the year-to-date low in March.
CEO James Belardi via trust purchased 40,000 Athene Holding Ltd ATH depositary shares last week, part of a secondary offering. The offering price was $25.00 per share, and the total for this transaction came to $1 million. Belardi is also board chair of this Bermuda-based retirement services company.
The Athene board also declared a preferred stock dividend last week. Shares ended the week down about 13% to $31 apiece, while the S&P 500 pulled back less than 5%. Though the share price is more than 85% higher since its year-to-date low in March, it was changing hands at more than $50 before the panic selling.
Furthermore, note that there was some amount of insider buying at Camping World Holdings Inc CWH, CME Group Inc CME and TransDigm Group Incorporated TDG last week as well.
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