- Insider buying can be an encouraging signal for potential investors.
- Many insiders took advantage of falling share prices last week.
- Carl Icahn was among those actively buying shares.
Conventional wisdom says that insiders and 10% owners really only buy shares of a company for one reason -- they believe the stock price will rise and they want to profit from it. So insider buying can be an encouraging signal for potential investors, particularly during periods of uncertainty.
A number of insiders took advantage of falling share prices last week. Here are some of the significant insider purchases reported in the past week.
A director at TransDigm Group Incorporated (NYSE: TDG) bought more than 357,500 shares of this manufacturer at between $451.95 and $496.02 apiece. That totaled nearly $167.80 million.
Carl Icahn, a 10% owner at Hertz Global Holdings Inc (NASDAQ: HTZ), shelled out between $6.99 and $8.06 per share for over 11.41 million shares. That cost him more than $84.83 million.
Three American Homes 4 Rent (NYSE: AMH) directors picked up almost 1.13 million shares of this real estate investment trust altogether for $24.63 to $28.96 each. The total was nearly $31.59 million.
A Mohawk Industries, Inc. (NYSE: MHK) director purchased 202,000 of the flooring company's shares at prices ranging from $99.66 to $109.37 apiece. That totaled more than $20.63 million.
Payroll services company TriNet Group Inc (NYSE: TNET) saw a director return to acquire more shares. At prices ranging from $45.07 to $54.58, the 521,500 or so purchased added up to more than $26.31 million.
The chief financial officer and four other insiders at Energy Transfer LP (NYSE: ET) picked up a total of 2.29 million shares. At $5.87 to $8.50 per share, that came to more than $16.48 million.
Frequent buyer Richard Kinder, executive chair at energy infrastructure company Kinder Morgan Inc (NYSE: KMI), added another 500,000 shares at an average of $15.51 apiece. That cost him over $7.75 million.
Bunge Ltd (NYSE: BG) CEO Greg Heckman joined six other insiders in buying shares of this agribusiness company. At prices ranging from $34.60 to $43.30, the 162,000 shares acquired totaled more than $6.44 million altogether.
Beneficial owner Carl Icahn and a Newell Brands Inc (NASDAQ: NWL) director together paid between $12.99 and $13.57 apiece for around 2.82 million shares. That totaled about $37.81 million.
And a pair of Valero Energy Corporation (NYSE: VLO) directors picked up more than 46,000 shares at $43.82 and $47.31 apiece. Altogether, that totaled nearly $2.18 million.
In addition, note that there was some amount of insider buying at Enterprise Products Partners L.P. (NYSE: EPD), Home Depot Inc (NYSE: HD), PNC Financial Services Group Inc (NYSE: PNC) and ViacomCBS Inc. (NASDAQ: VIAC) last week.
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