In This Article:
Insider buying can be an encouraging signal for potential investors.
Board chairs at pharmaceutical companies made notable buys this week.
An airline CEO led by example in acquiring company shares.
Conventional wisdom says that insiders and 10-percent owners really only buy shares of a company for one reason — they believe the stock price will rise and they want to profit. So insider buying can be an encouraging signal for potential investors, particularly during periods of uncertainty.
Below is a look at a few notable insider purchases reported in the past week, but also note that insiders at Freeport-McMoRan Inc (NYSE: FCX) and Revlon Inc (NYSE: REV) made some noteworthy buys as well.
MGM Resorts
MGM Resorts International (NYSE: MGM) saw a director making indirect share purchases this past week. At $25.37 to $26.66 each, the more than 2.87 million shares acquired totaled over $75.24 million. Note that these purchases were pursuant to a Rule 10b5-1 trading plan. That director's stake was last listed as more than 18.56 million shares.
Concerns over trade tensions between the United States and China have weighed on casino stocks recently. Yet, this stock rose about 3 percent in the past week, a bit better than the gain in the S&P 500, and shares closed most recently at $26.28, still within the director's purchase price range. Note that shares have traded as high as $32.13 in the past 52 weeks, and the analysts' consensus price target is $33.44.
Immunomedics
Immunomedics, Inc. (NASDAQ: IMMU) saw its executive board chair Behzad Aghazadeh indirectly purchase more than 1.53 million more shares of this biopharmaceutical company. At prices ranging from $11.97 to $12.47 per share, that cost him more than $18.74 million. Note that Aghazadeh also acquired 750,000 shares back in May. With a stake now of 20 million shares, he is a beneficial owner.
The Immunomedics chief medical officer stepped down earlier this year, and the company recently posted disappointing earnings results. As the stock ended Friday at $12.93 per share, after rising around 6 percent in the past week, the above purchases seem to be well-timed. The consensus target was last seen at just $25.70, but the stock has traded as high as $27.33 in the past 52 weeks.
See also: Barron's On: Why JPMorgan Is A Solid Bet Now
American Airlines
Last week, the American Airlines Group Inc (NASDAQ: AAL) CEO Doug Parker and several other executives and insiders acquired 100,000 shares altogether of this transportation company. At prices ranging from $27.61 to $28.65 per share, those transactions totaled nearly $3.09 million. Parker's stake was posted as more than 2.2 million shares.