Warren Buffett Continues Massive Energy Insider Buying: Phillips 66, Summit Midstream, Lands' End and More


Finally after what seems to have been the longest January in recorded investing history, maybe investors are starting to see a light at the end of the tunnel, and it isn’t a train full of sellers ready to run them over. While the markets are still on track to post the worst January in years, it is starting to feel like the selling is wearing itself out. One thing is for sure, insider buying stayed strong while insider selling is all but nonexistent, as it has been the entire month.

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 past week.

Phillips 66 (NYSE: PSX) had a big time buyer on the desk once again last week, and just like all of January the share count is huge. Warren Buffet’s Berkshire Hathaway was busy buying 719,055 shares of the company at prices between $74.33 and $80.08. The total for the trade came to $55.8 million. Earlier last week, the investing legend bought an additional 1,587,407 shares at prices that ranged from $75.54 to $78.93. The total for this buy was a staggering $121.5 million Phillips 66 operates as an energy manufacturing and logistics company. The stock closed the day on Friday at $80.03 per share.

Summit Midstream Partners L.P. (NYSE: SMLP) is another energy company that saw an insider buying shares, and the company has hit our screens every week so far in January as well. A director scooped up 267,650 shares of the stock at prices that ranged from $15.77 to $16.86 apiece. The total for the trade came to a sizable $4.4 million. The company focuses on owning, developing and operating midstream energy infrastructure assets, primarily in shale formations in North America. The company also provides natural gas gathering, treating and processing services. The stock ended last week at $16.65 per share.

Lands’ End Inc. (NASDAQ: LE) saw a well-known insider purchasing shares yet again. Edward Lampert continues to buy shares, and he has added an additional 161,551 shares of the stock at prices that fell between $20.61 and $22. The total for the buy came in at $3.4 million. The company operates as a multi-channel retailer in the United States and internationally that offers casual clothing, accessories, footwear and home products. The company sells its products through its e-commerce websites, direct mail catalogs, dedicated Lands’ End Shops at Sears, stand-alone Lands’ End Inlet stores, as well as international shops-in-shops. The shares closed Friday’s trading session at $22.58.

Tangoe Inc. (NASDAQ: TNGO) has a 10% owner of the company buying some shares last week. Clear Lake picked up a total of 468,057 shares at prices that ranged from $8.00 to $8.23 apiece. The total for the purchase was posted at $3.8 million. The company provides connection lifecycle management software and related services to enterprises and service providers worldwide. Its software covers the spectrum of an enterprise’s connection-based assets and services, such as voice and data services, mobile devices and usage, cloud software, infrastructure and services. The stock closed on Friday at $8.20 per share.

BioCryst Pharmaceuticals Inc. (NASDAQ: BCRX) continues to see insider buying, and this past week it was biotech hedge fund Baker Brothers that was adding shares to its position. The fund acquired a total of 344,895 shares of the company at prices that ranged from $6.87 to $7.46 apiece. The total for the purchase came to $2.5 million. The company designs, optimizes and develops small molecule drugs that block key enzymes involved in the pathogenesis of diseases. The stock ended trading on Friday at $7.40.

These companies also reported some insider buying this past week: CONSOL Energy Inc. (NYSE: CNX), Sears Holding Corp. (NASDAQ: SHLD), STAAR Surgical Inc. (NASDAQ: STAA), Stein Mart Inc. (NASDAQ: SMRT) and Xcerra Corp. (NASDAQ: XCRA).
For the third straight week, insider selling has been nonexistent, while the insider buyers have taken advantage of the market sell-off. This continues to be bullish for equity investors, and hopefully as January starts to wind down, and earnings season picks up, more buyers will continue to show up.

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