Insider buying can be an encouraging signal for potential investors.
Some notable insider buys last week came in the wake of quarterly reports.
A father and son added to their stakes in a top consumer products company.
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.
Newell Brands
Newell Brands Inc (NYSE: NWL) saw a
director add to his stake last week. At prices that ranged from $20 to $20.05, the 100,000 shares reportedly acquired cost
that director a little over $2 million. Note that this director is the son of Carl Icahn, and his stake was last seen at more
than 400,000 shares. Around 480 million shares are listed as outstanding.
Third-quarter filings also show that Carl
Icahn raised his stake in Newell Brands, among others. The stock ended this past week at $21.68 per share, so the director's
purchase seems well-timed. The shares have traded as high as $32.58 in the past year, but the consensus price target is just
$23.27.
Hain Celestial
Hain Celestial Group Inc (NASDAQ: HAIN)
CEO and President Mark Schiller made a notable share purchase this past week. At $22.77 to $22.94 apiece, the 45,800 shares
acquired totaled nearly $1.05 million. His stake was listed as more than 124,000 shares, compared with almost 110 million of them
were outstanding.
This maker of organic and natural products recently posted disappointing quarterly results but reiterated its fiscal year
guidance. Still, the shares sank to a new multiyear low of $21.76. They ended most recently at $22.68, or around 2 percent higher
in the past week — better than the S&P 500's performance. The consensus price target is $28.18, but shares have traded as high
as $44.37 each in the past 52 weeks.
Wynn Resorts
A director at Wynn Resorts, Limited (NASDAQ: WYNN) also stepped up to the buy window this past week. He picked up 9,800 shares
at around $103.01 apiece. That cost him nearly $1.01 million. Note that his most recent stake was less than 12,000 shares,
mostly held in a family trust.
Shares of this Las Vegas-based casino and resort operator were slammed after it posted
disappointing earnings recently. But the stock was trading at $107.76 a share on last look, up about 10 percent in the past
week. It was also a nice pop for the director. The stock has traded as high as $203.63 in the past year. Analysts have a consensus
price target of $127.75.
See also: Q3 13F
Roundup: How Buffett, Einhorn, Ackman And Others Adjusted Their Portfolio
At the time of this writing, the author had no position in the mentioned equities.
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