Gigantic Netflix Buy Highlights Insider Buying: CBRE, Penske Automotive, Ball, Gogo and More
As all three major U.S. markets reached all-time highs together for the first time since New Year’s Eve 1999, you would think that insiders would be selling stocks like there is no tomorrow, but that was hardly the case this past week. In fact, the buyers were out in full force and gobbling up stock. That is an incredibly bullish sign for the markets to see insiders adding shares at these levels, especially in the traditionally slow month of August.
We cover insider buying each 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 an overall positive indicator.
Here are some of the companies that reported notable insider buying last week.
Last week, Netflix Inc. (NASDAQ: NFLX) had a huge buyer adding shares. Technology Crossover Management bought a massive 300,000 share block of the video streaming giant at prices that ranged from $94.26 to $94.33 per share. The total for the purchase came in at $28 million.
24/7 Wall St. recently had a look at the top shareholders in Netflix, including founder and CEO Reed Hastings. The company’s shares closed trading on Friday at $95.59, so the timing of the buy looks very good.
The top insider at Penske Automotive Group Inc. (NYSE: PAG) was buying shares this past week. The CEO, the legendary Roger Penske himself, who is also a 10% owner of the company, bought a whopping 151,412 shares at prices that ranged from $39.71 to $40.05. The total for the purchase was a large $6 million.
In addition, earlier in the week Penske bought another 220,632 shares at prices that ranged from $37.93 to $40.43. The total for that buy was posted at a whopping $9 million. Penske Automotive shares closed on Friday at $41.28, so clearly the car legend knows his own business well.
Penske Automotive operates as a transportation services company. It operates 14 dealership locations of heavy and medium duty trucks, primarily under Freightliner and Western Star brand names, as well as offers a range of used trucks and service and parts. It also is involved in the sale and placement of third-party finance and insurance products, third-party extended service and maintenance contracts, and replacement and aftermarket automotive products. Further, the company distributes commercial vehicles and parts to a network of more than 70 dealership locations, including three company-owned retail commercial vehicle dealerships.
A global commercial real estate services and investment company, CBRE Group Inc. (NYSE: CBG) checked in with another massive buy for August when Value Act, a director and 10% owner of the company, purchased 182,060 shares of the stock at $28.50 apiece. The total for the purchase was posted at $5 million. The shares closed trading on Friday at $29.64.
Ball Corporation (NYSE: BLL) saw heavy insider buying last week. Seven insiders, including CEO John Hayes and some directors, bought a total of 33,400 shares of the stock at prices that ranged from $79.27 to $80.73. The total for the combined purchases was posted at $2.5 million.
Ball Corporation supplies metal packaging products to the beverage, food, personal care and household industries worldwide. The stock closed the day on Friday at $80.30 a share.
Numerous high-ranking executives were buying Gogo Inc. (NASDAQ: GOGO) shares last week. The chief executive, chief operating officer and a director purchased a total of 300,000 shares of the stock at prices that ranged from $10.20 to $11.00. The total for the combined purchases was posted at $3 million.
Gogo, through its subsidiaries, provides communications services to the commercial and business aviation markets in the United States and internationally. The stock closed trading on Friday at $11.18.
These companies also reported insider buying last week: AMC Entertainment Holdings Inc. (NYSE: AMC), AmerisourceBergen Corp. (NYSE: ABC), Beazer Homes USA Inc. (NYSE: BZH), Frank’s International N.V. (NYSE: FI) and Haemonetics Corp. (NYSE: HAE).
Insider buying at the top of the market is an extremely bullish sign. While we could have some consolidation over the next couple of months, it’s pretty clear that top executives at their respective companies are very positive and buying shares. That is news that is good for all investors.