Insiders Load Up on Top Blue Chips and Energy: General Electric, Kinder Morgan, Anadarko and More
The roller-coaster stock market continues to give investors some outstanding entry points to stocks, and insiders are no exception as the buying levels stayed elevated this past week. With January looking to finish as the worst month for the markets since 2009, and energy hitting the lowest levels in almost 10 years, savvy investors were once again scooping ups shares of the top companies.
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.
General Electric Co. (NYSE: GE) had a senior vice president at the company buying shares. The senior vice president bought a total of 65,272 shares of the iconic blue chip industrial at $28.04 per share. The total for the purchase came to $1.8 million. The shares have rallied nicely since the fall, and the January pullback provided a good entry point. This is bullish for investors considering buying shares. GE was trading on Friday’s close at $29.06.
Kinder Morgan Inc. (NYSE: KMI) has been battered in the oil rout, and a director at the company has taken advantage. That director purchased a massive block of 180,000 shares at prices between $14.18 and $14.20 apiece. The total for the buy was a very solid $2.6 million. Kinder Morgan operates as an energy infrastructure and energy company in North America. Its stock closed on Friday at $16.45, so it seems a very well-timed purchase indeed.
(NYSE: KEY) saw a host of people at the top buying shares of the bank this past week. The CEO and seven directors scooped up a total of 99,900 shares at prices that ranged from $10.90 to $11.22. The total for the purchases came to $1.1 million. KeyCorp. operates as the bank holding company for KeyBank National Association, which provides various retail and commercial banking services to individual, corporate and institutional clients in the United States. The stock ended the week at $11.16 per share.
Legg Mason Inc. (NYSE: LM) is another company that saw the executives at the top buying shares. The chief executive, chief financial officer and two directors purchased a total of 52,000 the company’s shares at prices that ranged from $29.77 to $29.92. The total for the buys came in at $1.5 million. The firm provides investment management and related services to institutional and individual clients, company-sponsored mutual funds and other pooled investment vehicles through its wholly owned subsidiaries. The stock closed on Friday at $30.62
Anadarko Petroleum Corp. (NYSE: APC) is another top energy company that saw purchasing last week. A director at the company acquired 7,527 shares at prices between $30.07 and $31.00. That cost him nearly $230,000. The company engages in the exploration, development, production and marketing of oil and gas properties. Shares closed Friday at $39.09, so very well-timed, and maybe not near enough.
These companies also reported insider buying last week: MGIC Investment Corp. (NYSE: MTG), Micron Technology Inc. (NASDAQ: MU), Raymond James Financial Inc. (NYSE: RJF), Sears Holdings Corp. (NASDAQ: SHLD) and STAAR Surgical Co. (NASDAQ: STAA).
The buyers remain on the prowl and once again, as has been the case all of January, the selling was nonexistent. Combine a wretched sell-off with fourth-quarter earnings reporting, when windows to trade are closed, and you have virtually no activity. All of this remains fairly bullish for equity owners.