In This Article:
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Insider buying can be an encouraging signal for potential investors.
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Some insiders made return trips to the buy window in the past week.
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Health care companies featured prominently in the week's insider purchases.
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 with markets near all-time highs.
Below is a look at a few notable insider purchases reported in the past week, but also note that beneficial owners of Beacon Roofing Supply, Inc. (NASDAQ: BECN) and Sunrun Inc (NASDAQ: RUN) made some sizable buys as well.
MGM Resorts
MGM Resorts International (NYSE: MGM) had a director continue to make indirect share purchases this past week. At $27.31 to $28.00 apiece, the more than 488,600 shares acquired most recently totaled almost $13.62 million. Note that these purchases were pursuant to a Rule 10b5-1 trading plan and continued a buying streak that began in early June.
MGM investors did not seem too concerned about the Caesars-Eldorado deal. MGM stock rose about 2% in the past week, while the S&P 500 was essentially flat. Shares closed most recently at $28.57, above the director's latest purchase price range. Note that shares have traded as high as $31.66 in the past 52 weeks, and the analysts' consensus price target is $33.09.
Immunomedics
Immunomedics, Inc. (NASDAQ: IMMU) saw its executive board chair, Behzad Aghazadeh, step up again and indirectly purchase a million more shares of this biopharmaceutical company. At prices ranging from $13.21 to $13.84 per share, that cost him almost $13.55 million. Note that Aghazadeh also acquired shares earlier in the month and back in May. With a stake now of 21 million shares, he is a beneficial owner.
The Immunomedics chief medical officer stepped down earlier this year. Because the stock ended the past week at $13.87 per share, after rising more than 6% in the past week, the above purchases seem to be well-timed. The consensus target was last seen at just $25.30, but the stock has traded as high as $27.33 in the past 52 weeks.
See Also: End Of An Era: What To Make Of Jony Ive's Departure From Apple
AbbVie
Last week, two AbbVie Inc (NYSE: ABBV) directors and an executive acquired 49,400 shares altogether of this pharmaceutical company. At prices ranging from $67.30 to $67.50 per share, those transactions totaled more than $3.32 million. Note that the shares were changing hands at more than $78 apiece at the beginning of the week.