Top Biotech Fund Continues Huge Insider Buying: Seattle Genetics, TransDigm, JC Penney and More

March 13, 2016 by Lee Jackson

The roller-coaster market ride continued this past week, but that didn’t stop insiders from continuing to buy shares. With first-quarter earnings reporting now just three short weeks away, the window for many insiders to make transactions may be starting to close. While the buying wasn’t as prolific as what we saw when the market was getting pummeled in January and February, it remains consistent.

We cover insider buying every week at 24/7 Wall St., and we like to remind our readers that while insider buying is usually a very positive sign, it is not in and of itself a reason to run out and buy a stock. Sometimes insiders and 10% owners have stock purchase plans set up at intervals to add to their holdings. That aside, it still remains a positive indicator.

Here are some of the companies that reported notable insider buying this past week.

Seattle Genetics Inc. (NASDAQ: SGEN) had one of the biggest biopharmaceutical funds buying more shares of the stock again this past week. The Baker Brothers acquired 349,323 shares of the company at prices between $32.36 and $33.69 apiece. The total for that buy was a very impressive $11 million. This biotechnology company develops and commercializes antibody-based therapies for the treatment of cancer. The stock closed Friday at $33.36.


TransDigm Group Inc. (NYSE: TDG) had a director at the company make a very significant purchase this past week. That director bought a total of 41,655 shares at prices that ranged from $219.68 to $221.79. The total for the trade came in at a rich $9 million. The company designs, produces and supplies aircraft components in the United States. The stock closed on Friday at $221.17.

Kennedy-Wilson Holdings Inc. (NYSE: KW) saw some of the people at the top of the company buying shares last week. The chief executive officer, an executive vice president and the general counsel at the company purchased a total of 96,938 shares at between $20.26 and $20.92 apiece. The total came to an even $2 million. Kennedy-Wilson operates as a real estate investment and services company in the United States, the United Kingdom, Ireland, Jersey, Spain and Japan. The stock ended the week at $21.97.

Taser International Inc. (NASDAQ: TASR) had a director accumulating shares of the company recently. That director purchased a block of 100,000 shares at a share price of $19.85. That cost the director just under the $2 million. The company develops, manufactures and sells conducted electrical weapons worldwide. Its share price was $19.53 as trading ended on Friday.

American Assets Trust Inc. (NYSE: AAT) saw the man at the top buying shares this week. CEO Ernest Rady scooped up 39,448 shares of the company at prices that fell between $37.66 and $37.69 per share. The total for the buy came in right at $1.5 million. This U.S. real estate investment trust (REIT) owns, operates, acquires and develops retail, office, multifamily and mixed-use properties, primarily in southern and northern California and in Hawaii. The stock closed Friday at $38.28.

These companies also reported insider buying this week: American Homes 4 Rent (NYSE: AMH), Carbo Ceramics Inc. (NYSE: CRR), Huntington Bancshares Inc. (NASDAQ: HBAN), Intrepid Potash Inc. (NYSE: IPI), JC Penney Co. Inc. (NYSE: JCP) and TPG Specialty Lending Inc. (NYSE: TSLX).

As mentioned, while the volumes are down from the massive buying we saw during the big sell-off, they are still quite respectable. It is possible though that things will indeed slow down as earnings season comes into the picture.

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