Key Insider Buying in Twitter, Level 3, Sears, MBIA and More

August 15, 2015 by 247lee

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.

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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.

Array Biopharma Inc. (NASDAQ: ARRY) had a 10% owner come in and scoop up shares in a big way this past week. Redmile Group bought 1,048,993 shares at prices that ranged from $5.67 to $5.85. That cost the group a hefty $6.1 million. Array shares ended Friday’s trading session at $5.70.

Sears Holdings Corp. (NASDAQ: SHLD) had a well-known investor and executive buying shares last week. Chairman and CEO Eddie Lampert added to his stake in a big way. He bought 277,252 shares of the venerable retailer at prices that fell between $22.10 and $24.39 per share. The total for the buy came to $6.3 million. The stock closed trading Friday at $25.18, so a very well-timed purchase.

Level 3 Communications Inc. (NYSE: LVLT) is another top company that had a 10% owner of the stock adding to a position. Temasek Holdings bought 212,261 shares of the stock at $48.63 apiece. The total for the buy came to $10.3 million. Level 3 is a facilities-based provider of a range of integrated communications services, primarily in North America, Latin America, Europe, the Middle East and Africa. The company provides transport services comprising wavelengths, private lines, transoceanic and dark fiber, as well as related professional services. Shares closed most recently at $48.58.

These companies were also among the many reporting insider buying this past week: MBIA Inc. (NYSE: MBI), Merrimack Pharmaceuticals Inc. (NASDAQ: MACK), Diamond Offshore Drilling Inc. (NYSE: DO), New York Mortgage Trust Inc. (NASDAQ: NYMT) and Twitter Inc. (NASDAQ: TWTR).

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This was probably the largest insider buying week we have witnessed all year. Plus, one of the bullish signs was that stocks and sectors that had been beaten down, including energy, saw solid buying across the board. Lastly, the buyers swamped the sellers this week, yet another very positive sign for what many have perceived to be an aging and tired bull market.