Insider buying can be an encouraging signal for potential investors.
Some notable insider buys last week came in the wake of quarterly reports.
A father and son added to their stakes in a top consumer products company.
Conventional wisdom says that insiders and 10-percent owners really only buy shares of a company for one reason: they believe the stock price will rise and they want to profit. Insider buying can be an encouraging signal for potential investors, particularly during periods of uncertainty.
Here's a look at a few notable insider purchases reported in the past week.
Newell Brands Inc (NYSE: NWL) saw a director add to his stake last week. At prices that ranged from $20 to $20.05, the 100,000 shares reportedly acquired cost that director a little over $2 million. Note that this director is the son of Carl Icahn, and his stake was last seen at more than 400,000 shares. Around 480 million shares are listed as outstanding.
Third-quarter filings also show that Carl Icahn raised his stake in Newell Brands, among others. The stock ended this past week at $21.68 per share, so the director's purchase seems well-timed. The shares have traded as high as $32.58 in the past year, but the consensus price target is just $23.27.
Hain Celestial Group Inc (NASDAQ: HAIN) CEO and President Mark Schiller made a notable share purchase this past week. At $22.77 to $22.94 apiece, the 45,800 shares acquired totaled nearly $1.05 million. His stake was listed as more than 124,000 shares, compared with almost 110 million of them were outstanding.
This maker of organic and natural products recently posted disappointing quarterly results but reiterated its fiscal year guidance. Still, the shares sank to a new multiyear low of $21.76. They ended most recently at $22.68, or around 2 percent higher in the past week — better than the S&P 500's performance. The consensus price target is $28.18, but shares have traded as high as $44.37 each in the past 52 weeks.
A director at Wynn Resorts, Limited (NASDAQ: WYNN) also stepped up to the buy window this past week. He picked up 9,800 shares at around $103.01 apiece. That cost him nearly $1.01 million. Note that his most recent stake was less than 12,000 shares, mostly held in a family trust.
Shares of this Las Vegas-based casino and resort operator were slammed after it posted disappointing earnings recently. But the stock was trading at $107.76 a share on last look, up about 10 percent in the past week. It was also a nice pop for the director. The stock has traded as high as $203.63 in the past year. Analysts have a consensus price target of $127.75.
At the time of this writing, the author had no position in the mentioned equities.
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