Insider buying can be an encouraging signal for potential investors.
CEOs made notable purchases last week, with one of them bucking a selling trend.
Some insiders made return trips to the buy window.
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.
Also of note: activist investor Carl Icahn has been picking up shares of business services provider Conduent Inc (NYSE: CNDT).
Hain Celestial Group Inc (NASDAQ: HAIN) saw a director return for a few more notable indirect share purchases this past week. At $23.09 to $24.31 each, the nearly 1.49 million shares acquired most recently totaled more than $35.34 million. The stake was listed as over 4.2 million shares, which compares with more than 105 million shares outstanding.
This maker of organic and natural products recently posted better-than-expected quarterly results and announced the sale of its interest in Hain Pure Protein for $80 million.
Shares ended Friday at $22.48, below the director's latest purchase price range, after retreating more than 7 percent in the past week.
The consensus price target is just $21.90, but shares have traded as high as $31.53 in the past 52 weeks.
The Medicines Company (NASDAQ: MDCO) saw a director last week indirectly acquire 431,000 shares of this biopharmaceutical company at $33.13 to $34.50 apiece. The transactions totaled more than $14.6 million. Note that this same director purchased 855,000 shares back in early March, when the share price was near $25. The director's stake was last seen at over 4.06 million shares.
Shares of this New Jersey-based company rallied after it released positive midstage study results for its lead product candidate Inclisiran, a cholesterol-lowering therapy. The stock ended the week more than 3-percent higher and closed most recently at $34.88, so the director's latest purchases seem to be well-timed. Note that shares have traded as high as $41.57 in the past 52 weeks; the analyst consensus price target is $53.57.
CEO Greg Heckman and two other Bunge Ltd (NYSE: BG) insiders stepped up to the buy window. The 52,588 shares reportedly acquired in the last week cost more than $2.71 million. Share prices ranged from $51.14 to $52.17. Heckman's purchases were pursuant to a Rule 10b5-1 trading plan, and his stake was last seen at more than 55,000 shares.
This agribusiness and food company recently reported better-than-expected first-quarter results and appointed a new chief financial officer.
Shares were trading at $50.55 a share on last look, after ending the week more than 2 percent lower. The S&P 500 pulled back less than 2 percent last week. The stock has changed hands as high as $73.13 a share in the past year. Analysts have a consensus price target of just $67.
Cognizant Technology Solutions
Last week, Cognizant Technology Solutions Corp (NASDAQ: CTSH) CEO Brian Humphries purchased 19,000 shares of this IT services provider. At prices ranging from $61.06 to $61.10 per share, that cost him more than $1.16 million. Note that another executive sold more than 3,300 shares earlier in the week, and other insiders were selling shares throughout March and April.
This New Jersey-based company's stock was one of Benzinga's bears of the week following its most recent earnings report. The shares ended the past week trading at $61.87, above the wide purchase price noted above, after rising more than 2 percent in the past week. While the consensus target was last seen at just $68.85, the stock has traded as high as $83.35 in the past 52 weeks.
At the time of this writing, the author had no position in the mentioned equities.
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