Tech Insider Buying Jumps as Politics and Data Fuel Roller-Coaster Week: Seagate, Infinera, Pandora, AT&T and More
What a week for investors as some very unlikely scenarios became real. Donald Trump became the presumptive Republican nominee for U.S. president and the Leicester City soccer team won the Premier League Championship after starting the season at 5000 to 1 odds. The markets meanwhile seesawed as the earnings express starts to wind down for first-quarter numbers. Insiders continue to buy shares, and some were in very beaten down stocks.
We cover insider buying every week at 24/7 Wall St., and we like to remind 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 last week.
Seagate Technology PLC (NASDAQ: STX) saw the man at the top buying shares, and this could be a good sign for investors at the beaten down hard disk drive company. CEO Stephen Luczo bought a block of 200,000 shares of the stock at $20.08 apiece. The total for the purchase came in at $4 million. The company designs, manufactures and sells electronic data storage products in the Asia-Pacific, the Americas and elsewhere. The stock closed on Friday at $19.07.
(NASDAQ: INFN) is another well-known tech stock that has taken a beating. Hopefully investors will be cheered to know that two top executives picked up shares this past week. CEO Thomas Fallon and the Chief Financial Officer (CFO) Brad Feller bought a combined 125,000 shares of the stock at prices between $11.75 and $11.95. That cost them right at $1.5 million. Infinera provides optical transport networking equipment, software and services worldwide. The shares were trading on Friday’s close at $12.00, so perhaps they low-ticked the shares.
Summit Midstream Partners L.P. (NYSE: SMLP) hits our screens yet again, as it has so many times during 2016. A director at Energy Capital Partners scooped up a total of 73,895 shares at prices that ranged from $20.19 to $20.83. The total for the buy was posted at $1.5 million. The company focuses on owning, developing and operating midstream energy infrastructure assets, primarily in shale formations in North America. Insiders at all levels of the company have been buying this stock. The shares were changing hands on Friday’s close at $20.92.
AT&T Inc. (NYSE: T) had an officer at the company purchasing shares this past week. Matthew Rose bought a total of 21,950 shares of the communications giant at $34.15 per share. The total for the purchase came in just under $750,000. The stock closed on Friday at $38.99, so this may have been a stock option related purchase.
Pandora Media Inc. (NYSE: P) is another beaten down technology stock that saw a senior executive adding shares. President and CFO Mike Herring bought a block of 50,000 shares of the company at $9.21 per share. The total for the purchase was posted at $500,000. Pandora Media provides internet music streaming services in North America. The stock ended the week at $9.67, so again maybe a bottom tick buy of shares.
These companies also reported insider buying this week: Cimpress N.V. (NASDAQ: CMPR), Intersil Corp. (NASDAQ: ISIL), Tempur Sealy International Inc. (NYSE: TPX), United Continental Holdings Inc. (NYSE: UAL) and XL Group PLC (NYSE: XL).
Volumes are starting to pick up as the transaction black outs are ending and windows are opening up again for institutions and executives to make insider transactions. Look for the numbers to jump even more as May rolls on.