- Insider buying can be an encouraging signal to prospective investors, especially when markets are uncertain or near highs.
- Beneficial owners made some of the most notable insider buying last week.
- Some insiders also took advantage of public offers of shares.
The common wisdom is that insiders and 10% owners buy shares in a company for one reason only: They believe the share price will rise and want to profit from it. Insider buying can therefore be an encouraging signal to potential investors, especially when the markets are uncertain or the markets are near all-time highs.
Note that the windows for buying or selling stocks are closed for many insiders as the reporting season is still open. Here are some of the most notable inside buys reported over the past week.
A 10% owner of Crinetics Pharmaceuticals Inc (NASDAQ: CRNX) has acquired 1.2 million shares in a public offering by this San Diego-based company. At $ 19.80 per share, which cost this owner $ 23.76 million and increased his stake to more than 5.16 million shares. A senior executive also sold 3,000 shares last week. The stock ended the week at $ 24.93, up about 26% from the owner’s purchase price.
Enfusion Inc (NYSE: ENFN) saw a director indirectly buy some stocks in last week’s IPO. The more than 1.26 million shares purchased totaled over $ 21.44 million at a price of $ 17.00 per share. This software as a service provider has previously traded between $ 19.05 and $ 22.19 per share. The stock last traded at $ 20.63, roughly 21% above the director’s purchase price.
Late last week, a 10% owner of Beacon Roofing Supply, Inc. (NASDAQ: BECN) indirectly added nearly 117,000 shares of this construction products maker. At about $ 51.31 each, the cost of these stocks was approximately $ 6 million. The stock rose about 3% last week, ending trading at $ 52.87 per share on Friday. That was about 3% more than the owner’s purchase price.
The purchase of approximately 563,000 Nerdy Inc (NYSE: NRDY) beneficial owner shares priced between $ 7.65 and $ 8.05 each totaled approximately $ 4.52 million. This increased the owner’s stake in the provider of the online learning platform to 9.10 million shares, while over 56 million shares are in circulation. The timing seems happy as the stock price of $ 8.56 as of Friday’s close was above the purchase price range.
See Also: 5 Stocks Insiders Are Selling
Some other sizable insider buying reported last week:
- Riley Exploration Permian Inc (AMEX: REPX) The beneficial owner is buying over 107,000 shares for nearly $ 2.8 million.
- Intel Corporation (NASDAQ: INTC) six directors bought more than 55,100 shares for over $ 2.7 million.
- Archer Aviation Inc (NYSE: ACHR) The beneficial owner is buying nearly 444,300 shares for over $ 2.5 million.
- Texas Capital Bancshares Inc (NASDAQ: TCBI) two directors and one officer bought 30,000 shares for more than $ 1.7 million.
- Affiliated Banc Corp (NYSE: ASB) Director buys 50,000 shares for over $ 1.1 million.
At the time of this writing, the author did not hold a position in any of the stocks mentioned.
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