- Insider buying can be an encouraging signal to prospective investors, especially when markets are near all-time highs.
- Some infrastructure-related companies attracted some notable insider buying last week.
- Beneficial owners have been in the spotlight again as reporting season approaches the buy window for many insiders.
Traditional wisdom has it that insiders and 10% owners buy shares in a company for one reason only – they believe the share price is going up and they 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 many insiders are prohibited from buying or selling stocks as the reporting season is in full swing. Here are some of the most notable inside buys reported over the past week.
A beneficial owner has a stake of more than 25%. built up Cricut Inc (NASDAQ: CRCT), a craft technology company. About 804,100 shares were added indirectly last week, at prices between $ 32.77 and $ 34.98 apiece, costing the owner approximately $ 27.16 million. Note that the owner has been buying stocks since late May.
Cricut, which has been publicly traded since March, is expected to release its latest quarterly results on August 12th. The share price fell more than 9% last week, closing at $ 34.13 on Friday, within the owner’s latest purchase price range. The stock is up more than 87% since it went public. At last glance, it only had a consensus price target of $ 34.00.
Beacon roof supply
Late last week, a beneficial owner of Beacon Roofing Supply, Inc. (NASDAQ: BECN) has increased its stake ahead of the upcoming earnings report. At about $ 55.53 apiece, the more than 108,000 indirectly acquired shares totaled nearly $ 6 million. This purchase increased the owner’s stake to more than 14.42 million shares. The company’s free float is around 55.10 million shares.
The Virginia-based company is expected to release its third quarter results on August 5th.
The share price was $ 53.48 when regular trading ended on Friday. That was only negligibly in the past week and more than 3% below the purchase price of the owner. The stock has traded up to $ 60.93 in the past 52 weeks but has a consensus price target of $ 67.80.
Communication infrastructure company Crown Castle International Corp (NYSE: CCI) had a director buy 11,200 shares last week. At purchase prices per share between $ 191.27 and $ 191.76 for a total of $ 2.14 million. Note that 7,000 of these shares were acquired through a trust fund for the benefit of the director’s children. The director’s own share was quoted at more than 141,700 shares.
Crown Castle released its second quarter results and raised its guidance for the full year the previous week. The stock has fallen about 5% since the report, ending Friday at $ 193.09 per share, above the director’s purchase price range. The share price has still risen more than 21% since the beginning of the year. Overall, analysts recommend buying the share.
Special purpose vehicle (SPAC) Fast Acquisition Corp (NYSE: FST) returned a beneficial owner to the buy window last week. At $ 11.64 to $ 12.70 per share, the most recently acquired 202,500 shares totaled more than $ 2.47 million. Note that this owner has bought more than $ 18 million worth of shares since early July and holds over 3.57 million shares.
Fast Acquisition intends to merge with Tilman Fertitta’s casino and restaurant holdings, which include Golden Nugget, Bubba Gump Shrimp, Joe’s Crab Shack, and many other brands. The stock ended the week at $ 12.45, within that insider’s buy range. To date, the stock has traded between $ 9.59 and $ 14.10.
See Also: 4 Stocks Insiders Are Selling
Note that there are some minor insider purchases in the event AAR Corp. (NYSE: AIR), Anthem Inc (NYSE: ANTM) and Archer-Daniels-Midland Co (NYSE: ADM) was also reported last week.
At the time of this writing, the author did not hold a position in any of the stocks mentioned.
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