- Insider buying can be an encouraging signal for potential investors.
- One CEO and one beneficial owner were among the insider buyers featured this week.
- Some of the insider buying comes in the wake of earnings reports.
Conventional wisdom says that insiders and 10-percent owners only buy shares of a company for one reason: they believe the stock price will rise and they want to profit from. So insider buying can be an encouraging signal for potential investors, particularly with markets near all-time highs.
Here's a look at a few notable insider purchases reported in the past week.
International Flavors & Fragrances
International Flavors & Fragrances Inc (NYSE: IFF) saw beneficial owner Winder Investment add to its stake again. At prices that ranged from $132.42 to $135, the 345,000 shares reportedly acquired in the past week cost the Singapore-based holding company more than $46.35 million. Winder has been buying shares on and off since March.
IFF posted better-than-expected second-quarter results last week. The stock ended the week at $132.41, just below Winder's purchase price range. The 52-week low of $122.11 from back in May compares with the 52-week high of $157.40 that was reached early this year. The consensus price target, last seen at $144.93, is less than that high.
Platform Specialty Products
Platform Specialty Products Corp (NYSE: PAH) saw its human resources chief and two directors step up to the buy window this past week. A total of 441,000 shares in the chemical products maker were acquired at per-share prices ranging from $12.07 to $12.36 and cost the buyers about $5.4 million altogether. Note that each of these three insiders have a stake of less than 1 million shares.
The company posted better-than-expected quarterly results earlier in the month. The shares ended the past week trading at $12.25 apiece, still within the range of the above purchases. The stock has changed hands between $9.09 and $13.11 in the past year, but the mean analyst price target is at $14.70.
Three Newell Brands Inc. (NYSE: NWL) directors increased their stakes this past week. The more than 91,000 shares of this consumer products giant acquired at per-share prices between $20.50 and $21.42 cost over $1.79 million altogether. All three of the directors have stakes of 50,000 or fewer shares.
Shares of Newell Brands dropped to 52-week lows in the wake of a mixed quarterly report. Shares retreated more than 22 percent in the past week and were last seen trading at $20.82. That was still within the price range of the above purchases. Shares have traded as high as $50.90 in the past year, but the analyst's mean price target is only $27.83.
At Macquarie Infrastructure Corp (NYSE: MIC), CEO Christopher Frost and five directors picked up more than 34,800 shares of the New York-based company last week. The share prices for these purchases ranged from $45.80 to $45.98, and the transactions totaled about $1.6 million. Here too, the purchases came after a recent quarterly earnings report.
Macquarie Infrastructure announced in late July the sale of assets, in part to pay down debt. The share price pulled back about 2 percent last week and closed Friday at $45.01, so there was no quick gain for these insiders. While the stock has traded as high as $75.09 a share in the past year, the analysts' mean price target is $50.60.
A Crown Castle International Corp. (NYSE: CCI) director bought a total of 9,900 shares of this cell phone tower company last week at between $109.86 to $110.34 per share. That cost him around $1.09 million altogether, and his stake was listed as more than 109,000 shares. About 411 million shares are outstanding.
The Crown Castle board declared a dividend earlier this month. The shares ended the past week trading at $110.34, down fractionally for the week and at the top of the purchase price range. The S&P 500 also retreated a bit last week. The stock's consensus price target was last seen at $117.35.
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