Investing

Market Sell-Off Spurs Insider Buying

When you go as long as this market has without a 10% correction, one seems almost inevitable. In what should continue to be a positive atmosphere for stocks, the sellers have had the upper hand this week, and more selling could be in store. For insiders and 10% holders, the sell-off makes initiating or adding to positions that much better. They certainly took advantage of it this past week.

We cover insider buying every week at 24/7 Wall St. Often when insiders, especially top C level executives, buy stock, it is a very bullish signal for current shareholders and those thinking about investing.

Here are this past week’s top insider buying transactions.

Flextronics International Ltd. (NASDAQ: FLEX) saw a very large buyer step in this week. Glenview Capital Management, which is already a 10% holder in the company, bought 5 million shares of the stock at $10.20. The total purchase came to a whopping $50.9 million. Flextronics is a leading end-to-end supply chain solutions company that delivers design, engineering, manufacturing and logistics services to a range of industries and end markets. Shares were trading Friday at $9.77.

Sears Holdings Corp. (NASDAQ: SHLD) has been all over the news recently, as the situation for the iconic American retailer seems to worsen almost every week. Fairholme Capital Management, which is already a very large 10% owner, added 49,200 shares of the stock to its holdings at $26.40, for a total purchase of $1.3 million. But Sears closed trading Friday at $24.78.

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Allison Transmission Holdings Inc. (NYSE: ALSN) is another company that had a 10% holder add to its position. ValueAct Holdings bought 550,000 more shares at prices that ranged from $28.10 to $28.40. Maverick Capital has also been buying stock, adding shares to its portfolio in an initial position put on late last month. Allison is the world’s largest manufacturer of fully automatic transmissions for medium- and heavy-duty commercial vehicles, and it is a leader in hybrid-propulsion systems for city buses. The shares ended the week at $27.44.

Advanced Emissions Solutions Inc. (NASDAQ: ADES) had one of the directors in the company make a very substantial purchase of 375,000 shares of the stock. Priced at $20.97 per share, the total purchase came to a very stout $7.8 million. This is a very bullish signal for current shareholders, to see an individual commit that kind of capital. The company may have some current problems, as it is fighting off a delisting issue. Shares closed trading Friday at $19.85.

Entegris Inc. (NASDAQ: ENTG) is another company that saw a current 10% holder add to its position. GMT Capital bought 174,829 shares at a price of $11.50, for a total of $2 million. Entegris is a leading provider of yield-enhancing materials and solutions for advanced manufacturing processes in the semiconductor and other high-technology industries. Shares were trading at Friday’s close at $11.01.

ALSO READ: Insider Selling Very Mild as Market Rout Hammers Stock Prices

Other companies that saw insider buying this week included: OHA Investment Corp. (NASDAQ: OHAI), SandRidge Energy Inc. (NYSE: SD), FuelCell Energy Inc. (NASDAQ: FCEL), EP Energy Corp. (NYSE: EPE) and Omnova Solutions Inc. (NYSE: OMN).

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