Beacon Roofing, Chipotle, IPOs, Latham And More

  • Insider buying can be an encouraging signal to prospective investors, especially as markets near all-time highs.

  • Some insiders again took advantage of the recent public stock offerings to add or strengthen stake.

  • Again, biotechnology companies are well represented on this list.

Conventional wisdom has it that insiders and 10% owners really only buy shares in a company for one reason – they believe the share price will go up and they want to profit from it. Insider buying can therefore be an encouraging signal to potential investors, especially when there is uncertainty in the markets or the markets are nearing an all-time high.

Note that many insiders are prohibited from buying or selling stocks during the current earnings reporting season. Here are some of the most notable insider purchases reported over the past week.

The combined 3.52 million or so Impel Neuropharma Inc. (NASDAQ: IMPL) Shares bought by five beneficial owners had a market price of $ 15.00 per share. These transactions cost her more than $ 52.87 million. The stock has traded as low as $ 15.89 per share since the offering but ended the week at $ 15.20.

Rain Therapeutics Inc. (NASDAQ: RAIN) have two beneficial owners and a former 10% owner involved in the IPO. The total of more than 2.02 million shares of this oncology company, which were purchased at a price of $ 17.00 each, added up to over $ 34.42 million. The stock ended the week trading at $ 16.37 per share.

A Knowbe4 Inc. (NASDAQ: KNBE) The beneficial owner indirectly raised nearly 1.88 million shares early last week. With an IPO price of USD 16.00 per share, the value for the provider of the platform for security awareness was approximately USD 30.00 million. The stock traded as low as $ 26.98 per share but ended the week at $ 22.98.

A 10% owner of Beacon Roofing Supply, Inc. (NASDAQ: BECN) increased its stake last week. The more than 563,600 shares, which were indirectly purchased at a price of approximately $ 53.23 each, totaled nearly $ 30.00 million, increasing that to approximately 14.32 million shares. The stock hit a 52-week high of $ 57.67 on Friday.

The story goes on

Real Estate Investment Trust (REIT) based in New Jersey Mack Cali Realty Corp. (NYSE: CLI) had a director’s return and indirectly raised an additional 200,000 shares at a price of approximately $ 16.46 per share. That cost the director more than $ 3.39 million. Note that the same director also bought nearly 240,000 shares previously.

Apollo Medical Holdings Inc. (NASDAQ: AMEH) saw a beneficial owner pay $ 24.50 each for 100,000 shares. The total for this transaction was $ 2.45 million, increasing the interest to over 10.75 million shares. Note that the company’s chief medical officer also sold 100,000 shares around the same time.

Swimming pool manufacturer Latham Group Inc. (NASDAQ: SWIM) also just went public. CEO Michael Rajeski and several other insiders raised a total of 127,500 shares for $ 19.00 each. Those purchases totaled more than $ 2.42 million. The stock traded up to $ 28.98 per share but ended the week at $ 26.00.

A 10% owner added 47,700 more shares of AnaptysBio Inc. (NASDAQ: ANAB) last week. They were indirectly acquired for $ 23.53 to $ 23.82 apiece, which is more than $ 1.13 million, increasing our stake in this San Diego-based biotechnology to nearly 7.30 million shares.

Chipotle Mexican Grill, Inc. (NYSE: CMG) saw a director buy 673 shares for $ 1,485 each. That cost him about $ 999,400. Note, however, that one official recently parted with nearly 2,800 shares. The stock last traded at $ 1,492.03 per share, and Jim Cramer recently said it could go “a lot higher”.

See also: 20 picks from the 2021 CNBC ‘Stock Draft’: Bitcoin, Amazon, Ark Lead The Way

Note that some minor insiders buy from Arcus Biosciences Inc. (NASDAQ: RCUS), Associated Banc Corp. (NYSE: ASB), Capstar Financial Holdings Inc. (NASDAQ: CSTR), Heartland Express, Inc. (NASDAQ: HTLD), Tellurian Inc. (NASDAQ: TELL), Texas Capital Bancshares Inc. (NASDAQ: TCBI) and Texas Pacific Land Corp. (NYSE: TPL) was also reported last week.

At the time of this writing, the author did not hold a position in the named stocks.

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Photo credit: Chis Potter, Flickr

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