Insider buying can be an encouraging signal for potential investors.
A couple of beneficial owners increased their stakes last week.
One of these companies also recently saw its CEO 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. Insider buying can be an encouraging signal for potential investors, particularly during periods of uncertainty. The following are a couple of notable purchases made by beneficial owners in the past week:
Last week, Sunrun Inc (NASDAQ: RUN) 10% owner Tiger Global Management acquired 640,000 shares of this solar energy systems installer. At prices ranging from $15.43 to $16.13 per share, those transactions totaled more than $10.10 million. That brought the investment firm's stake up to almost 14.21 million shares.
KeyBanc just initiated bullish coverage on Sunrun and other solar stocks after the recent sell-off. Sunrun shares are down more than 18% this month and closed most recently at $14.66, below the above purchase price range. The stock has traded as high as $21.42 per share in the past 52 weeks.
The 40 North Latitude Fund, a W. R. Grace & Co. (NYSE: GRA) 10% owner, purchased about 118,600 shares of this chemicals company last week. At $64.35 to $65 a share, the transactions totaled more than $7.67 million. Note that the fund bought more than 730,000 shares in the previous week as well.
CEO Andrew Hudson La Force III and the company's CFO each picked up some shares at the beginning of the month after W.R. Grace posted better-than-expected earnings in late July. The shares were last seen trading at $65.21. The analysts' consensus price target is $86.67.
At the time of this writing, the author had no position in the mentioned equities.
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