- Insider buying can be an encouraging signal for potential investors, especially when markets are near all-time highs.
- Some insiders were making return trips to the buy window last week.
- Beneficial owners were stepping 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 when there is uncertainty in the markets or the markets are near all-time highs.
Note that with earnings-reporting season all but over, many insiders are free once more to buy or sell shares. Here are a few of the most noteworthy insider purchases that were reported in the past week.
An Oscar Health Inc OSCR cofounder indirectly purchased more than 1.65 million shares of this health insurance provider last week. At $12.69 to $14.26 apiece, the cost for those shares totaled over $21.56 million. Note that, with a stake of over 1.72 million shares, this cofounder is also a 10% owner.
The purchase of almost 1.15 million Krispy Kreme Inc DNUT shares by a 10% owner at prices ranging from $15.11 to $17.50 apiece totaled more than $19.33 million. Note that this owner and two other insiders purchased over $8.79 million worth of shares altogether in the previous week as well.
Three insiders at Alpha Healthcare Acquisition Corp AHAC each acquired more than 1.52 million shares for $10.00 apiece as the special purpose acquisition company (SPAC) completed its merger with Humacyte. The transactions added up to more than $15.2 million altogether.
Valaris Ltd VAL saw a beneficial owner acquire more than 276,000 shares indirectly for $25.38 to $28.11 apiece. That cost that owner almost $7.45 million and lifted its stake in the Bermuda-based offshore driller to over 9.41 million shares. There are about 75 million shares outstanding.
In the latest of a number of purchases stretching back to late May, a Cricut Inc CRCT 10% owner picked up over 253,300 more shares at prices ranging from $25.77 to $28.50 apiece. These latest purchases added up to more than $6.68 million. Note that some insiders sold more than 114,000 shares altogether last week as well.
Real estate and biotech company Rafael Holdings Inc RFL saw CEO Howard Jonas step up to the buy window last week. Jonas indirectly acquired more than 112,500 shares for $44.92 apiece. That totaled over $5.05 million. The shares ended the week at $47.60, about 6% higher than the CEO's purchase price.
Cerevel Therapeutics Holdings Inc CERE had a director add almost 175,600 shares to a stake. The transactions totaled more than $4.83 million, at share prices ranging from $24.25 to $29.48, and lifted the stake to over 5 million shares. The stock was last seen trading at $30.34 per share.
A Callon Petroleum Company CPE 10% owner returned to purchase additional shares last week. At per-share prices of $28.71 to $29.59, the around 152,500 shares indirectly acquired cost that owner more than $4.46 million. That is less than the nearly $11.95 million worth of shares that owner bought in the prior week.
Real estate investment trust Apartment Investment and Management Co AIV had a director purchase 450,000 shares for about $2.94 million. The share ranged from $6.33 to $6.67 per share. Note that the same director picked up more than 900,000 shares back in March, when the stock was changing hands for less than $6 a share.
Note that some smaller amount of insider buying at Array Technologies Inc ARRY, Bright Health Group Inc BHG, Energy Transfer LP ET, Enterprise Products Partners L.P. EPD, FireEye Inc FEYE, Kontoor Brands Inc KTB and SoFi Technologies Inc SOFI 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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