Notable Insider Buys This Past Week: Immunomedics, Simply Good Foods And More

Nelson Hem
3 min read
0
In this article:

  • Insider buying can be an encouraging signal for potential investors.

  • A couple of biotech stocks saw some notable insider buying last week.

  • Some of these insiders made return trips to the buy window.

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.

Insiders continued to add shares despite overall market volatility and global economic gloom. Here are some of the most noteworthy insider purchases reported in the past week.

Immunomedics

An Immunomedics, Inc. (NASDAQ: IMMU) director took advantage of a common stock offering to add 1.75 million shares. At the offering price of $28.50 per share, that cost the director almost $49.88 million and raised the stake to 26.25 million shares. Shares outstanding number fewer and 180 million.

Immunomedics stock ended last week's trading at $30.38 per share, so the purchase seems well timed. The share price is up more than 157% since its year-to-date low last month.

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Myovant Sciences

Myovant Sciences Ltd (NYSE: MYOV) saw 10% owner Sumitomo Chemical purchase about 190,500 shares of this London-based biopharmaceutical company last week at prices averaging about $12.05 apiece. That totaled almost $2.30 million. Note that Myovant's parent is a subsidiary of Sumitomo, which frequently has been buying shares since establishing a Rule 10b5-1 stock trading plan during the market's pandemic selling panic in mid-March.

Myovant stock ended the week trading at $11.15, below the above purchase price. However, shares are still up more than 68% from their year-to-date low in March.

Simply Good Foods

A director at Simply Good Foods Co (NASDAQ: SMPL) returned to the buy window last week. That director bought more than 87,800 shares at prices ranging from $16.76 to $17.00, totaling over $1.48 million. The director and seven others were purchasing shares throughout April.

Simply Good Foods stock popped more than 3% in the past week and closed most recently at $18.35 a share. That is well above the director's latest purchase price range.

Cincinnati Financial

A pair of Cincinnati Financial Corporation (NASDAQ: CINF) directors shelled out $72.25 to $72.51 per share for 5,500 shares altogether of this property casualty insurance provider. That cost them more than $398,200, and it came in the wake of posting earnings that fell short of Wall Street expectations.

The latest close at $60.95 per share is well below the purchase price range above, and it came after the shares hit a 52-week low of $60.00 on Friday. The stock is down about 42% year to date, while the S&P 500 is less than 10% lower.

In addition, note that there was some amount of insider buying at AGNC Investment Corp (NASDAQ: AGNC), Sterling Bancorp (NYSE: STL) and Webster Financial Corporation (NYSE: WBS) last week as well.

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