- Insider buying can be an encouraging signal for potential investors, especially when markets are near all-time highs.
- Once again, some insiders took advantage of recent public share offerings to add or bolster stakes.
- Industrials, real estate investment trusts and a retailer saw insider purchases, and a beneficial owner returned to the buy window again.
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 when there is uncertainty in the markets or the markets are near all-time highs.
Note that, with the new earnings reporting season underway, many insiders are prohibited from buying or selling shares. Here are some of the most noteworthy insider purchases that were reported in the past week.
Neuropace Inc NPCE saw two beneficial owners and two other insiders buy into last week's initial public offering. The almost 875,600 shares of this medical device maker acquired at $17 apiece added up to more than $14.88 million. The stock ended the week trading at $25.44 per share.
New Jersey-based real estate investment trust (REIT) Mack Cali Realty Corp CLI had a director indirectly pick up 240,000 shares recently at prices between $15.25 and $16.10. That cost that director more than $3.76 million. Note that the same director also purchased almost 788,000 shares last month.
Greenbrier Companies Inc GBX CEO William Furman added 50,000 shares to his stake last week. At share prices ranging from $43.43 to $44.22, that totaled more than $2.19 million and lifted his stake in this railroad freight car maker to over 562,500 shares. Note that the company posted disappointing quarterly results earlier this month.
A 10% owner of Molecular Templates Inc MTEM made another return trip to the buy window. Reported last week were over 190,800 more shares bought at prices that ranged from $8.07 to $8.62 per share. The latest transactions totaled more than $1.62 million and lifted the stake to over 9.42 million shares.
The more than 100,000 New Residential Investment Corp NRZ shares that CEO Michael Nierenberg purchased in last week's secondary offering had a per-share price of $10.10. So the transactions cost him $1.01 million and raised his stake in this New York City-based REIT to more than 357,000 shares.
A director bought almost 207,700 shares of HC2 Holdings Inc HCHC last week. They were acquired via trust for between $3.53 and $3.76 apiece, which totaled about $757,700. Note that the roughly 2.37 million-share stake in this New York City-based conglomerate makes that director a 10% owner. The stock closed most recently at $4.09 a share.
Bed Bath & Beyond Inc. BBBY saw the chief financial officer and two directors pay $25.02 to $25.56 a share for 23,500 shares altogether. The total for these transactions came to more than $596,800. Shares of this specialty retailer ended Friday's trading at $26.52, which was up about 4% for the week.
Autonomous driving technology company Tusimple Holdings Inc TSP had its IPO last week. The CFO and a director picked up more than 9,600 shares altogether for $40 apiece. These purchases added up to almost $385,700. Note that Cathie Wood's ARK Invest has scooped up some shares as well.
Applovin Corp APP also went public, at $80 per share, and a pair of directors bought in at that price, acquiring around 3,800 shares between them. That cost them more than $304,100. Unfortunately, shares of this Palo Alto-based tech company went out at $70, and they closed on Friday at only $58.50 apiece.
Note that some smaller amount of insider buying at Rent-A-Center Inc RCII, Syndax Pharmaceuticals Inc SNDX, Texas Pacific Land Corp TPL and York Water Co YORW was reported in the past week as well.
At the time of this writing, the author had no position in the mentioned equities.
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