- Insider buying can be an encouraging signal for potential investors, especially when markets are uncertain.
- With the new earnings season underway, this week's most notable insider purchases were made by 10% owners.
- A SPAC about to go public and a recent initial public offering prompted insiders to scoop up shares.
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, the windows for many insiders to buy or sell shares are closed. Here are a few of the most noteworthy insider purchases that were reported in the past week.
A beneficial owner of Digitalbridge Group Inc DBRG returned to the buy window last week to acquire more than 1.14 million additional shares of this Boca Raton-based real estate investment trust. At share prices ranging from $16.37 to $16.50, that cost the owner over $25.38 million. Note that the owner bought 418,300 shares in the prior week, and the stake was up to more than 5 million, compared with around 3.5 million a month ago.
Live Oak Acquisition Corp II LOKB also saw a beneficial owner pick up some shares last week. The nearly 1.64 million shares purchased added up to more than $16.47 million, at a per-share price of $10.05. This special purpose acquisition company (SPAC) is expected to begin trading on the Nasdaq soon as Navitas Semiconductor. Live Oak shares ended the week trading at $12.43 apiece, more than 23% higher than the above purchase price.
Last week, a 10% owner of Life Time Group Holdings Inc LTH added more than 512,800 shares in the initial public offering of this Minnesota-based developer of fitness centers and spas. At $18.00 apiece, the cost for those shares totaled around $9.23 million. The stock has traded between $16.55 and $18.02 per share thus far, and it closed the week at $16.96, more than 5% below the owner's purchase price.
The purchase of more than 5.73 million Agile Therapeutics Inc AGRX shares by a beneficial owner at about $0.85 apiece totaled over $4.87 million. The owner's stake in this contraceptives maker was up to more than 21.6 million shares, out of around 89 million shares outstanding. The micro-cap stock ended the week at $0.76 per share, up from a 52-week low of $0.65 seen in the previous week.
See also: 4 Stocks Insiders Are Selling
Some other sizable insider purchases reported last week:
- Safehold Inc SAFE beneficial owner buys more than 53,300 shares for over $3.9 million.
- IMPAC Mortgage Holdings, Inc IMH beneficial owner buys 700,000 shares for about $896,000.
- Annovis Bio Inc ANVS CEO and two other directors buy almost 23,200 shares for nearly $639,000.
- Riley Exploration Permian Inc REPX beneficial owner buys around 23,400 shares for more than $600,100.
At the time of this writing, the author had no position in the mentioned equities.
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