- Insider buying can be an encouraging signal to potential investors, especially when the markets are uncertain.
- The most notable insider buys of the week were made by returning buyers.
- A chief executive officer and chairman of the board were among the notable insiders who increased their stakes.
Conventional wisdom says that insiders and 10% owners actually buy a company’s stock for one reason only: they believe the stock price is going to rise and they want to profit from it. Thus, insider buying can be an encouraging signal to potential investors, especially when there is uncertainty in the markets or when the markets are near their all-time highs.
Note that with the start of a new earnings season, windows for insiders to buy or sell stocks close. Here are some of the more notable insider buys that have been reported over the past week.
CEO Dustin Moskovitz of Asana Inc (NYSE: ASAN) returned to the buy window last week to acquire more than 253,800 additional shares of the San Francisco-based tech company. At stock prices ranging from $ 98.67 to $ 100.00, it cost him over $ 25.38 million. Moskovitz bought 250,000 shares the week before and over 760,000 in September. The stock finished last week at $ 105.45 per share, more than 5% above the top of the latest buy price range.
Sensitive Technology Society (NYSE: SXT) saw one beneficial owner continue a buying streak dating back to late August. The more than 61,700 stocks most recently picked up totaled more than $ 5.7 million, with per share prices of $ 91.04 to $ 94.46. The owner’s stake in the food and cosmetic ingredients maker stands at more than 5 million shares, compared to approximately 42 million shares outstanding. The stock was last seen at $ 89.16 per share.
Last week a Evergy Inc (NYSE: EVRG) indirectly purchased about 60,000 additional shares of the Kansas City-based power producer. At $ 61.64 to $ 63.48 apiece, the cost of these actions was approximately $ 2.77 million. Note that this director also recovered nearly $ 5 million in shares the previous week. However, the stock finished last week at $ 62.01 per share, near the bottom of the latest buy price range.
The purchase of over 197,000 Designer Brands Inc (NYSE: DBI) Shares of Jay Schottenstein, chairman of the board, priced from $ 13.87 to $ 14.00 a piece totaled over $ 2.75 million. Its stake of over 1.8 million shares also makes it a 10% owner. Note that other executives sold 100,000 shares recently. Shares of the shoe company ended the week at $ 13.72 per share, below the buy price range above.
See also: 4 stocks that insiders sell
Some other important insider buys reported last week:
- Spero Therapeutics Inc (NASDAQ: SPRO) the beneficial owner purchases more than 134,500 shares for more than $ 2.5 million.
- Cheniere Energy Partners LP (AMEX: CQP) the beneficial owner buys more than 44,500 shares for more than $ 1.8 million.
- Analog devices, Inc. (NASDAQ: ADI) the director buys about 8,000 shares for more than $ 1.3 million.
- CIM Commercial Trust Company (NASDAQ: CMCT) Three directors buy nearly 79,800 shares for about $ 710,000.
- MaxLinear, Inc. (NYSE: MXL) An executive buys about 10,400 shares for more than $ 499,700.
At the time of this writing, the author has no position in the mentioned stocks.
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