- Insider buying can be an encouraging signal for potential investors, especially when markets are near all-time highs.
- A SPAC, a REIT and some tech companies saw notable insider buying this past week.
- Chief executive officers were among last week's insiders adding to their stakes 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 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 earnings reporting season officially over, insiders overall are no longer prohibited from buying or selling shares. Here are some of the most noteworthy insider purchases that were reported in the past week.
A former director of special purpose acquisition company ARYA Sciences Acquisition III Corp ARYA returned to indirectly buy 5.50 million additional shares last week. At $10.00 per share, that cost that owner $55.00 million. Note that this SPAC is merging with Nautilus Biotechnology Inc NAUT.
Two Enviva Partners LP EVA directors took advantage of a secondary offering to acquire almost 912,100 shares altogether of this producer of utility-grade wood pellets. At the offering price of $45.50 per share, these transactions added up to nearly $41.50 million. Shares were last seen at $49.10.
Asana Inc ASAN CEO Dustin Moskovitz purchased 910,000 shares throughout the week. He paid $37.10 to $46.14 apiece for those shares, which totaled more than $37.10 million. Note that another officer sold 30,000 shares of this San Francisco-based tech company during the week as well.
The purchase of more than 88,700 more PennyMac Financial Services Inc PFSI shares by a director (and frequent buyer) for $61.85 or so per share totaled more than $5.49 million. Note that the chief executive of this California-based mortgage company parted with 30,000 shares last week as well.
Safehold Inc SAFE saw a beneficial owner pick up almost 53,800 shares of this real estate investment trust at prices ranging from $73.00 to $76.01 apiece. These transactions totaled almost $4.00 million altogether. The stock popped more than 8% last week to close Friday at $76.91 a share.
Following a better than expected earnings report, Lululemon Athletica Inc LULU had a director purchase 4,800 shares at $330.00 apiece. This added up to more than $1.58 million. Note that another director sold about 310 shares, and the stock ended the week trading at $338.30 a share.
Biglari Holdings Inc BH CEO Sardar Biglari stepped up to the buy window once again. The 1,400 or so class A shares that he indirectly acquired, at prices between $800.00 and $916.00, cost him around $1.22 million. Before these transactions, Biglari had purchased over 1,000 shares so far this month.
The CEO of cloud-based communications services provider 8x8, Inc. EGHT, David Sipes, scooped up 443,000 of the shares early in the past week. The share prices ranged from $23.44 to $23.50, and these purchases totaled almost $1.01 million. The timing looks fortunate, as the stock closed the week at $26.89 a share.
Opendoor Technologies Inc OPEN had a director add more than 59,300 shares to a stake in the past week. That totaled more than $1.00 million, at share prices averaging about $16.90. Note that an executive sold 75,000 shares of this online real estate services provider last week as well.
Note that some smaller amount of insider buying at Boyd Gaming Corporation BYD, Clearway Energy Inc CWN, C3Ai Inc AI, Dollar Tree, Inc. DLTR, FireEye Inc FEYE, Pacific Premier Bancorp, Inc. PPBI, Roper Technologies Inc ROP and Texas Pacific Land Corp TPL was reported in the past week as well.
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