Insider buying, especially when markets are near all-time highs, can be a positive sign for potential investors.
This week, major insider buying was sparked by a handful of special purpose acquisition businesses and some initial public offerings.
Last week’s prominent insider purchasers included a handful of chief executive officers.
Insiders and 10% shareholders, according to conventional opinion, only buy stock in a firm for one reason: they believe the stock price will grow and they want to profit from it. Insider buying can be a positive sign for potential investors, especially when markets are volatile or near all-time highs.
Insiders are no longer restricted from purchasing or selling shares in general now that the earnings reporting season has ended. The following are some of the most notable insider acquisitions reported in the last week.
CEO Ragy Thomas of Sprinklr Inc (NYSE: CXM) bought more than 31,200 shares, while three 10% owners bought a total of 3.09 million shares. At a price of $16.00 per share in the initial public offering, the total value of the shares was over $50.00 million. It’s worth noting that the stock ended the week at $20.88 per share.
In the IPO of Minneapolis-based Bright Health Group Inc (NYSE: BHG), a beneficial owner got more than 1.94 million shares of common stock. That amounted to roughly $35.00 million at $18.00 per share, bringing the owner’s holding to 47.92 million shares. However, the stock was last spotted trading at $16.70 per share.
Dustin Moskovitz, the founder and CEO of Asana Inc (NYSE: ASAN), purchased 480,000 additional shares for $61.21 to $64.80 per share, totaling more than $30.36 million. He started buying shares in early June, and his holdings were believed to be up to 3.95 million. On Friday, the stock reached an all-time high of $67.41 per share.
Dustin Moskovitz, the Founder of Asana What Investors Should Know About Buying Stocks in June
A beneficial owner of Doximity Inc (NYSE: DOCS) indirectly purchased 775,000 shares of this provider of an online networking platform for medical professionals last week. That 10% owner paid $20.15 million for the stock at the IPO price of $26.00 per share. The stock closed the week at $49.88 per share.
A beneficial owner of Fintech Acquisition Corp V (NASDAQ: FTCV) purchased over 1.26 million shares of this blank check company at prices ranging from $11.93 to $12.67 per share. The total value of these trades was $15.42 million. The SPAC is expected to merge with eToro, an Israeli financial services firm.
One of Larimar Therapeutics Inc’s (NASDAQ: LRMR) directors has entered the buy window. At a $8.75 a share price, the more than 685,700 shares acquired indirectly cost the director nearly $6.00 million. This director owns 10% of the biotech company with a stake of more than 1.94 million shares.
A Transocean LTD (NYSE: RIG) director purchased a million more shares at prices ranging from $4.44 to $4.72 each, the latest in a series of acquisitions in June. This totaled around $4.53 million. On Friday, the world’s largest offshore drilling contractor’s stock set a new 52-week high of $5.13.
A director of Therapeutics Acquisition Corp. (NASDAQ: RACA) bought 209,100 shares of special purpose acquisition company Therapeutics Acquisition Corp. (NASDAQ: RACA) for $10 each, totaling $2.09 million, just before the company’s merger with radiotherapeutics company POINT Biopharma Global Inc (NASDAQ: PNT) last week.
Last week, a director returned to Norwood Financial Corporation (NASDAQ: NWFL), resulting in an indirect increase of more than 20,700 shares. At share prices ranging from $25.38 to $25.96, this cost the director over $532,000 in total. In June, that director purchased 65,000 shares of this bank holding firm.
Insider buying was also reported in the past week at energy services company Avangrid Inc (NYSE: AGR), logistics behemoth CH Robinson Worldwide Inc (NASDAQ: CHRW), specialty retailer Hibbett Inc (NASDAQ: HIBB), Omega Healthcare Investors Inc (NYSE: OHI), and business services provider RR Donnelley & Sons Co (NYSE: RRD).
(c) Benzinga.com, 2021. Benzinga does not offer financial advice. All intellectual property rights are reserved./n
