Big Buffett and Icahn Trades Highlight Insider Buying: Phillips 66, Hertz, Bank of New York Mellon, Advance Auto Parts and More
This past week started to resemble just what we have expected the rest of the summer to look like: volatile, with more coming. The market ran up right near all-time highs, and the buying looked serious. Then the sellers stepped in.
One thing’s for sure, the political table looks set for the general election, and combining that with a possible British exit from the European Union and a rate hike, and you have all the ingredients for higher volatility.
Despite last week’s ups and downs, big-time insiders were big-time buyers.
We cover insider buying each and 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 without making several considerations.
Sometimes insiders and 10% owners have stock purchase plans set up at intervals to add to their holdings. That aside, it still remains an overall positive indicator. And most investors think that if an insider was going to buy shares around bad news that perhaps they would buy into their company’s stock after the news hits rather than before.
Here are some of the companies that reported notable insider buying during the week ending June 10, 2016.
Phillips 66 (NYSE: PSX) had a big time buyer on the desk once again this past week, and just like in all of 2016, the share count is huge.
Warren Buffett’s Berkshire Hathaway, which is now a 10% owner of this energy manufacturing and logistics company, was busy buying 469,604 shares of the company at prices between $79.91 and $80.71.
The total for the trade came to $38 million. Phillips 66 operates through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties (M&S). The stock closed the day on Friday at $80.07.
Because Hertz Global Holdings Inc. (NYSE: HTZ) has struggled terribly over the past year, shareholders may be pleased to know that Wall Street legend and renowned investor Carl Icahn, who is also a 10% owner of the company, bought shares last week.
Icahn purchased a total of 983,929 shares at prices between $9.88 and 9.96. The total for the buy was posted at $10 million. Icahn now owns a 15.24% stake in Hertz after the purchase.
Hertz closed Friday at $10.68, so the timing looks very solid.