Huge Insider Buying Continues as Hedge Funds Remain Active: AIG, Apollo Global, Tempur Sealy, Radius Health and More
Another solid week for investors, and one in which insider buying dominated the selling. Once again, this remains incredibly positive for stock investors after an eight-year bull market. While clearly some of the buying may be of the activist variety, it still shows faith and the willingness of the big hedge funds and institutional accounts to put up some serious capital.
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 and 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 this past week.
Apollo Global Management LLC (NYSE: APO) had a huge hedge fund once again buying shares last week. This makes almost two straight months that Tiger Global Management has been buying and adding to their stake in the private equity giant. This week it bought 681,672 shares at prices that ranged from $26.29 to $26.45. The total for the purchase was reported at 18 million. The stock closed last Friday at $27.56. The 52-week trading range for the shares is $14.25 to $27.78, and the Wall Street consensus price target is $30.33.
Tempur Sealy International Inc. (NYSE: TPX) also had a 10% owner of the company making another huge purchase last week. H Partners bought a block of 150,000 shares at prices that ranged from $45.97 to $46.08. The total for the trade was posted at $7 million. The shares closed Friday at $45.96, in a 52-week range of $39.52 to $87.37. The consensus price target is $50.67.
American International Group Inc. (NYSE: AIG) had the man at the top of the company buying shares last week. The new CEO of the company, Brian Duperreault, bought a block of 80,000 shares of the insurance giant at between $61.16 and $61.85 apiece. The shares closed Friday at $63.55, so it appears to be a well-timed purchase. The consensus price target is $68.80 and the 52-week trading range is $48.41 to $67.47.
Revlon Inc. (NYSE: REV) had a director who is a 10% owner buying share last week. That board member bought a total of 950,000 shares of the personal care products giant at prices that ranged from $19.30 to $19.46. The total for the purchase was posted at $4 million. The shares closed Friday at $18.90. The 52-week range is $18.30 to $37.96, and consensus price target is a whopping $42.
Radius Health Inc. (NASDAQ: RDUS) had a 10% owner of the company, which develops and sells therapeutics in the areas of osteoporosis, oncology and endocrine diseases, adding to their holdings. Biotech Growth bought a 50,000 share block of the stock at $34.41. The total for the trade was set at $2 million. The shares closed the day last Friday at $34.93. The 52-week range is $31.58 to $59.88. The consensus price target is set at $57.13.
These companies also reported insider buying last week. American Assets Trust Inc. (NYSE: AAT), Avnet Inc. (NYSE: AVT), Diamondback Energy Inc. (NASDAQ: FANG), Entercom Communications Corp. (NYSE: ETM) and FreshPet Inc. (NASDAQ: FRPT).
Another solid week as the markets keep grinding higher. While volume this coming week should be lower due to the Memorial Day holiday, it’s a good bet that insiders, especially the activists that are continuing to add to positions, keep up the buying.