While the late summer doldrums are here, the insider action since the end of the second-quarter earnings season is hardly dull. Just like last week, executives and 10% owners are buying shares at some of the highest levels we have seen all year long. This week some high-profile health care and biotech stocks were being bought, alongside other well-known companies. In addition, a high-profile hedge fund was also buying shares this week.
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 positive indicator.
Here are some of the companies that reported notable insider buying this week.
Tenet Healthcare Corp. (NYSE: THC) had a 10% owner come in and add a huge chunk of the company stock to an already large position. Glenview Capital Management bought some 697,719 shares of the stock at prices that ranged from $54.44 to $54.49. The total for the gigantic buy was $38 million. Tenet shares were trading on Friday’s close at $52.18, so perhaps a touch early.
NMI Holdings Inc. (NASDAQ: NMIH) had the chief financial officer of the company buying stock last week, and he was joined by Hayman Capital Management, which is run by the very savvy and well-known Kyle Bass. Between the two they bought a total of 1,885,000 shares at $8.25 to $8.77 per share, for a total purchase price of $15.7 million. The company provides private mortgage guaranty insurance services in the United States. The shares ended the week at $8.85.
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