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Massive Energy Trade Highlights Recent Insider Buying

Once again, despite roller-coaster markets that have made more than a few investors a little queasy, the inside buyers continue to dominate the sellers. This week though, the trend is starting to shift, and energy and one of the top commodity producers lead the list for insider buying, and that is a welcome sign for investors in the two long-suffering sectors.

We cover insider buying every week at 24/7 Wall St., and we like to remind our readers that while insider buying is usually a very positive sign, it is not in of itself a reason to run out and buy a stock. Sometimes insiders and 10% owners have stock purchase plans set up at intervals to add to their holdings. That aside, it still remains a positive indicator.

Here are some of the companies that reported noted insider buying this past week.

Phillips 66 (NYSE: PSX) was the benefactor of a gigantic trade, put on by one of America’s foremost investors. Wall Street legend Warren Buffet’s Berkshire Hathaway Inc. (NYSE: BRK-B) bought an incredible 3,511,470 shares of the stock at prices between $77.01 and $82.74. The total for this gargantuan trade was an incredible $287.7 million. Phillips 66 operates as an energy manufacturing and logistics company. Shares were trading on Friday’s close at $80.60.

ALSO READ: Disney Confirms Buying Back Stock Aggressively in the Sell-Off

Freeport-McMoran Inc. (NYSE: FCX) is a very beaten down commodity stock that saw some big insider action this past week. The vice chairman of the company bought 2.2 million shares of the stock at prices that ranged from $9.53 to $9.90. The total for the buy came to a hefty $21.3 million. Freeport-McMoRan, a natural resource company, engages in the acquisition of mineral assets and oil and natural gas resources. It primarily explores for copper, gold, molybdenum, cobalt, silver and other metals. The shares closed trading on Friday at $11.40, so a very well-timed buy.

Rovi Corp. (NASDAQ: ROVI) had a 10% owner of the company purchasing shares last week. Engaged Capital bought a total of 450,000 shares of the stock at prices between $10.76 and $10.90 apiece. The total for the buy came to $4.9 million. The company provides integrated solutions for the discovery and personalization of digital entertainment to service providers and the consumer electronics industry worldwide. Shares ended the week at $11.96, so the timing looks good.

AV Homes Inc. (NASDAQ: AVHI) had a director at the company buying stock this past week. The director bought a block of 155,599 shares of the company at $13.49. The total for the purchase came to $2.1 million. The company engages in the homebuilding, community development and land sale businesses in the Florida, Arizona and North Carolina markets. The stock was trading at $13.77 on Friday’s close.

Patriot National Inc. (NYSE: PN) had its CEO, who is also a 10% owner of the firm, add to his holdings this past week. Steven Mariano bought a total of 65,400 shares at $16.45 apiece. That cost him $1.1 million. The company provides various outsourcing solutions within the workers’ compensation marketplace for insurance companies, employers, local governments and reinsurance captives in the United States. Shares ended trading on Friday at $16.68.

ALSO READ: The 6 Most Shorted NYSE Stocks

These additional companies also reported insider buying in the past week: Aircastle Ltd. (NYSE: AYR), CareDx Inc. (NASDAQ: CDNA), Global Partners L.P. (NYSE: GLP), Joy Global Inc. (NYSE: JOY) and Nymox Pharmaceutical Corp. (NASDAQ: NYMX).

Despite the ongoing market volatility, we still continue to see far more insider buying than selling. That is welcome news for stock investors that have had a pretty rough go of it over the past three weeks.

By Lee Jackson


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