In what was perhaps the wildest roller-coaster week for the markets this year, investors were thrashed back and forth as the continuing drama in Greece and China spiked volatility. With earnings season officially underway, many corporate windows for executives and 10% owners of stock appeared to have closed as volume, especially on the sell side has started to dry up.
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 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 very positive indicator.
Energy Transfer Equity
Energy Transfer Equity L.P. (NYSE: ETE) last week saw an incredible buy in the company’s shares. Kelsey Warren, the chairman of the board, through his investment vehicle Seven Bridges Holdings, which is a 10% owner of the stock, bought a gigantic 1 million shares that ranged in price from $62.95 to $63.10. The total price tag for the enormous purchase was $63 million. And it brings his total ownership stake in the company to 80,703,000 shares (according to data provided by Nasdaq.com).
Energy Transfer Equity, through its subsidiaries, provides diversified energy-related services in the Unites States. It owns and operates approximately 7,700 miles of natural gas transportation pipelines and three natural gas storage facilities located in the state of Texas, as well as approximately 12,800 miles of interstate natural gas pipeline.
Warren’s huge buy is extremely bullish, and it makes investors wonder just what value may be lurking under the surface. The shares were trading on Friday’s close at $65.40, so the timing looks impeccable indeed.
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