- Insider buying can be an encouraging signal for potential investors, especially when markets are near all-time highs.
- A couple of special purpose acquisition companies and some initial public offerings prompted notable insider buying this past week.
- A couple of chief executive officers were among last week's notable insider buyers 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.
Sprinklr Inc CXM CEO Ragy Thomas purchased more than 31,200 shares, and three 10% owners added a combined 3.09 million shares as well. At the initial public offering price of $16.00 apiece, those shares totaled nearly $50.00 million altogether. Note that the stock closed the week trading at $20.88 per share.
A beneficial owner of Minneapolis-based Bright Health Group Inc BHG received more than 1.94 million shares of common stock in its IPO. At $18.00 per share, that added up to nearly $35.00 million, and it lifted the owner's stake to 47.92 million shares. However, shares were last seen trading at $16.70 apiece.
The purchase of 480,000 more Asana Inc ASAN shares by founder and CEO Dustin Moskovitz for $61.21 to $64.80 per share totaled more than $30.36 million. He began buying shares in early June, and the stake was reported as up to 3.95 million shares. Note that the stock hit an all-time high of $67.41 a share on Friday.
Last week, a Doximity Inc DOCS beneficial owner indirectly acquired 775,000 shares of this provider of an online networking platform for medical professionals. At the IPO price of $26.00 per share, that cost that 10% owner $20.15 million. The shares ended the week at $49.88 apiece.
Fintech Acquisition Corp V FTCV saw a beneficial owner indirectly add over 1.26 million shares of this blank check company at prices ranging from $11.93 to $12.67 apiece. These transactions totaled more than $15.42 million. The SPAC is set to merge with Israeli financial services company eToro.
Larimar Therapeutics Inc LRMR saw one of its directors step up to the buy window. The more than 685,700 shares indirectly acquired, at a per-share price of $8.75, cost that director nearly $6.00 million. With a stake of over 1.94 million shares, this director is also a 10% owner of the biotech company.
In the latest in a number of purchases during June, a Transocean LTD RIG director picked up a million more shares at prices ranging from $4.44 to $4.72 apiece. This added up to about $4.53 million. Note that shares of the world's largest offshore drilling contractor hit a new 52-week high of $5.13 on Friday.
Just ahead of its merger with radiotherapeutics company POINT Biopharma Global Inc PNT last week, a director bought 209,100 shares of special purpose acquisition company Therapeutics Acquisition Corp. RACA for $10 apiece, or about $2.09 million in total.
Norwood Financial Corporation NWFL had a director return to indirectly add more than 20,700 additional shares last week. That cost that director almost $532,000, at share prices ranging from $25.38 to $25.96. That director had purchased 65,000 shares of this bank holding company earlier in June.
Note that some smaller amount of insider buying at energy services company Avangrid Inc AGR, logistics giant CH Robinson Worldwide Inc CHRW, specialty retailer Hibbett Inc HIBB, Omega Healthcare Investors Inc OHI and business services provider RR Donnelley & Sons Co RRD was reported in the past week as well.
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