Investing

Huge Biotech and Energy Trades Dominate Insider Buying: Seattle Genetics, Summit Midstream, Western Refining and More

Lee Jackson

Published: March 6, 2016 10:10 am

Last Updated: January 13, 2020 12:19 pm

Finally it appears that the precipitous drop in the markets that started this year and has gone on for the better part of the past two months is slowing down. One thing is for sure, insiders and 10% owners at major companies continue to shell out big bucks to buy shares, and despite the recent rally in the indexes, they don’t look they are ready to quit purchasing any time soon.

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.

Seattle Genetics Inc. (NASDAQ: SGEN) had one of the biggest biopharmaceutical funds buying more shares of its stocks last week. The Baker Brothers purchased a total of 675,922 shares at between $30.39 and $32.69 apiece. The total for that buy was a very impressive $21 million. Earlier in the week the company bought an additional 314,508 shares of this biotechnology company at prices between $29.86 and $30.13 at the cost of $9 million. Seattle Genetics develops and commercializes antibody-based therapies for the treatment of cancer. The stock closed Friday at $32.53.

Summit Midstream Partners L.P. (NYSE: SMLP) is an energy company that saw an insider buying shares, and the company hit our screens every week in back January. A director at Energy Capital Partners bought 441,170 shares of the stock at prices that ranged from $13.12 to $13.99. The total for the trade came to a sizable $6 million. The company focuses on owning, developing and operating midstream energy infrastructure assets, primarily in shale formations in North America. The stock ended the week at $14.94 per share, so it seems a well-timed buy.

24/7 Wall St.
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