Among the most notable insider purchases of the past week or so is an almost $20 million buy in an American semiconductor concern. It was just one of several notable transactions by beneficial owners recently.
Some of the most notable purchases were made by return buyers, including a firm associated with Mexican billionaire Carlos Slim. A medical products maker and a biotech also saw notable purchases as well. Let’s take a quick look at these transactions.
Is Insider Buying Important?
What does insider buying tell us?
A well-known adage reminds us that corporate insiders and 10% owners really only buy shares of a company because they believe the stock price will rise and they want to profit from it. Thus, insider buying can be an encouraging signal for potential investors. This is all the more so during times of uncertainty in the markets, and even when markets are near all-time highs.
The earnings-reporting season is still underway, so many insiders are prohibited from buying or selling shares. Below are some of the more notable insider purchases that were reported in the past week, starting with the largest and most prominent.
Amkor Technology
Keeping it in the family.
- Buyer(s): 10% owner Sujoda Investments
- Total shares: almost 869,600
- Price per share: $21.85
- Total cost: nearly $19.0 million
Founder and former CEO James Kim distributed these Amkor Technology Inc. (NASDAQ: AMKR | AMKR Price Prediction) shares for the benefit of the Kim family.
This Arizona-based semiconductor packaging and test services provider posted mixed quarterly results last month. The share price has retreated more than 16% since then and is down over 20% since the beginning of the year to less than the buyer’s purchase price. Analysts have a consensus price target of $29.94, which is well below the 52-week high of $44.86.
Of nine analysts who cover the stock, six of them recommend buying shares, three of them with Strong Buy ratings. At least four of them reiterated their ratings after the earnings report.
Staar Surgical
A return buyer back for more.
- Buyer(s): 10% owner Broadwood Partners
- Total shares: over 663,700
- Price per share: $16.00 to $18.20
- Total cost: almost $11.3 million
This buyer has been buying shares since December and returned to the buy window and boosted the stake in Staar Surgical Co. (NASDAQ: STAA) to almost 12 million shares.
This maker of implantable lenses for the eye recently announced some layoffs and named a new chief executive. The stock has tumbled about 30% since the beginning of the year, but shares were last seen still within the buyer’s purchase price range. Analysts anticipate more than 15% upside in the next 12 months to their $18.67 consensus price target. Yet, only three of 13 analysts who cover the stock recommend buying shares.
Septerna
A CEO shows some love.
- Buyer(s): the CEO, CFO, and a beneficial owner
- Total shares: almost 1.1 million
- Price per share: $5.55 to $6.00
- Total cost: more than $6.4 million
Clinical-stage biotechnology company Septerna Inc. (NASDAQ: SEPN) had its initial public offering last fall. So far, shares have traded in a range of $4.17 to $28.99, and they were last seen changing hands a little above the purchase price range above.
The current consensus price target is $25.67, which represents around a 333% gain in the next 52 weeks. Analysts on average have recommended buying shares since the beginning of the year.
Note that the beneficial owner, Third Rock Ventures VI, boosted its stake to more than 4.2 million shares. CEO Jeff Finer now has a stake of about 771,900 shares.
PBF Energy
A beneficial owner and return buyer.
- Buyer(s): 10% owner Control Empresarial de Capitales
- Total shares: 389,000
- Price per share: $20.85 to $23.77
- Total cost: more than $8.5 million
This investment firm controlled by billionaire Carlos Slim has been scooping up shares of PBF Energy Inc. (NYSE: PBF) since last June. Now its stake is up to around 30 million shares.
The New Jersey-based refiner recently posted its third consecutive quarterly net loss due to falling margins. The stock has retreated about 30% since the report, and in fact has trended downward for almost a year. Shares were last seen trading for less than the buyer’s latest purchase price range. Analysts have a mean price target of $26.31, which represents almost 35% upside potential in the coming. Yet, none of the 15 analysts who follow the stock recommends acquiring shares.
Profrac
Poised for a rebound?
- Buyer(s): Executive Chair Matt Wilks and 10% owner Farris Welks
- Total shares: more than 627,500
- Price per share: $6.93
- Total cost: over $4.3 million
Texas-based hydraulic fracturing services company ProFrac Holding Corp. (NASDAQ: ACDC) named a new chief financial officer last spring. Third-quarter results lagged Wall Street expectations, but the next earnings report is due soon. Some see the stock as well-positioned for a breakout.
The share price is more than 19% lower than it was at the beginning of the year, as well as below the buyer’s purchase price. The consensus price target of $7.40 is less than the 52-week high of $9.75, but it represents more than 23% upside for the shares in the next 12 months. Yet, none of the six analysts who cover the stock recommend buying shares.
1-800-Flowers.com
Return buyer shrugs off disappointing earnings.
- Buyer(s): 10% owner Fund 1 Investments
- Total shares: about 558,000
- Price per share: $6.62 to $7.58
- Total cost: almost $4.0 million
1-800-Flowers.com Inc. (NASDAQ: FLWS) posted disappointing quarter results at the end of January and the stock retreated more than 15% afterward. It is now down almost 29% since the beginning of the year, far more than the S&P 500. On last look, shares were trading below the purchase price range above.
The $9.88 mean price target indicates Wall Street sees around 61% upside in the coming year. The consensus recommendation remains to buy shares. Note that this buyer has been scooping up shares since the beginning of the year. The stake is up to more than 7.6 million shares. Plus, the buyer has also been picking up Tile Shop Holdings Inc. (NASDAQ: TTSH) shares.
And Other Insider Buying
Some smaller insider buys at Denny’s, IBM, Salesforce, and more.
In the past week, some insider buying was reported at Akamai Technologies, Amkor, Apple Hospitality REIT, Cleveland-Cliffs, Coeur Mining, CRISPR Therapeutics, Denny’s, Dentsply Sirona, Freshpet, Grocery Outlet, HF Sinclair, Huntington Ingalls Industries, IBM, Kratos Defense, Matador Resources, Peabody Energy, PG&E, Regions Financial, Roblox, Roku, Salesforce, Skyworks Solutions, and Wolverine World Wide as well.
Top Gaining Stocks
Top Losing Stocks