- Insider buying can be an encouraging signal for potential investors.
- A solar provider and a beauty products giant saw notable insider buying this past week.
- In both cases, the purchases were part of larger buying patterns.
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.
Here are a couple of notable insider purchases reported in the past week:
Sunrun Inc (NASDAQ: RUN) saw 10% owner Tiger Global Management acquiring additional shares. At $14.67 to $15.50 apiece, the almost 841,000 shares reportedly acquired last week totaled more than $12.68 million. Note that this hedge fund also bought more than 867,000 shares last week, as well as many more in June and August.
This residential solar system installer recently announced projects in Hawaii and Vermont. Shares were trading at $15.96 a share on last look, so the most recent purchases appear well timed. The stock has changed hands as high as $16.14 a share in the past year, but the analysts' consensus price target is $22.40.
An executive at Coty Inc (NYSE: COTY) purchased 210,000 shares of this beauty products giant recently. At prices ranging from $9.58 to $9.93 a share, the transactions totaled nearly $2.06 million. Also note that CEO Pierre Laubies and three other directors picked up more than $4.23 million worth of shares in recent weeks.
The company posted quarterly results at the end of August that were largely in line with expectations. The shares were last seen trading at $10.66, above this executive's purchase price range, and in a 52-week range of $5.91 to $14.14. The analysts' consensus price target is $11.21.
See more from Benzinga
- Notable Insider Buys In The Past Week: Coty, LyondellBasell, PVH
- Notable Insider Buys In The Past Week: Sunrun, W.R. Grace
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