Biopharma and Energy Execs Lead Weekly Insider Buying

By Trey Thoelcke Published Aug 28, 8:45AM EDT

Quick Read

The past week’s most notable insider buying included a biopharmaceutical company, a pipeline company, and an industrial products maker.
These were not the only notable insider purchases of the past week.
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Biopharma and Energy Execs Lead Weekly Insider Buying — © HAYKIRDI / E+ via Getty Images

Among the past week’s most notable insider buying, a biopharmaceutical company that recently received approval for its primary treatment had a director scooping up shares. A former CEO made a big purchase of a natural gas pipeline company as well. And a return buyer continued to boost a stake in an industrial products maker.

Let’s take a quick look at these notable transactions in the past couple of weeks.

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.

With the second-quarter earnings-reporting season still underway, some insiders are prohibited from buying or selling shares for now. Below are some of the most notable insider purchases that were reported recently, starting with the largest and most prominent.

Madrigal Pharmaceuticals

Buyer(s): a director
Total shares: almost 165,700
Price per share: $353.76 to $392.57
Total cost: over $61.9 million

Madrigal Pharmaceuticals Inc. (NASDAQ: MDGL) recently received European Commission approval for its MASH treatment, and the share price surged. While a couple of officers sold some shares, one director stepped up to boost a stake to more than 1.9 million shares.

The stock is up 45.4% in the past month and is trading near an all-time high of $433.94. The share price is 63.6% higher than a year ago, far outperforming the S&P 500. Analysts anticipate 8.7% upside potential in the next 12 months, given their consensus price target of $461.43. Their consensus recommendation is to buy shares.

Note that this same buyer also picked up $28.8 million worth of Kymera Therapeutics Inc. (NASDAQ: KYMR) shares earlier this summer.

Energy Transfer

Buyer(s): a director
Total shares: 2.0 million
Price per share: $17.23 to $17.40
Total cost: almost $34.7 million

Energy Transfer L.P. (NYSE: ET) is a Dallas-based natural gas pipeline transportation and transmission services company with a high-yield dividend. This buyer, a former chief executive, now has a stake of almost 9.2 million shares.

The stock is down 10.0% since the start of the year, yet it is up 167.1% in the past five years, far outperforming the S&P 500 in that time. The consensus price target of $22.58 suggests 28.5% upside in the next 52 weeks. All but one of 17 analysts who follow the stock recommend buying shares, four of them with Strong Buy ratings. Morgan Stanley and Wells Fargo reiterated their Overweight ratings after the second-quarter report.

Resideo Technologies

Buyer(s): 10% owner CD&R Channel Holdings II
Total shares: about 729,600
Price per share: $31.52 to $34.00
Total cost: nearly $23.5 million

After scooping up over $55 million worth of the shares last week, the buyer came back for more.

Resideo Technologies Inc. (NYSE: REZI) is a Scottsdale, Arizona-based maker of technology-driven products, including temperature controls, security panels, video cameras, and more. Earlier this month, it posted better-than-expected quarterly results and raised its outlook.

In the past month, the stock has risen 49.6% and recently hit a 52-week high of $34.82. The share price is 70.1% higher than a year ago, far outperforming the S&P 500. In the next year, analysts anticipate the share price rising 1.4% to their mean price target of $35.00. Both analysts who follow the stock rate it at Buy or better.

And Other Insider Buying

These were not the only notable insider purchases of the past week. Here’s a quick look at some others.

Stock	Buyer	Shares	Price	Cost
Tortoise Energy Infrastructure Corp. (NYSE: TYG)	10% owner Prudential Financial	1.5 M	$10.00	$15.0 M
Asana Inc. (NYSE: ASAN)	a director	over 569,400	$13.25 to $14.28	almost $7.8 M
GCI Liberty Inc. (NASDAQ: GLIBA)	a director	about 198,500	$34.59 to $36.00	over $7.1 M
Sharps Technology Inc. (NYSE: STSS)	six directors	720,000	$6.41	over $4.6 M
Post Holdings Inc. (NYSE: POST)	a director	36,000	$109.53	over $3.9 M

Recently, some smaller insider buying was reported at Amcor, Boeing, Bunge, Coty, Elevance Health, Eversource Energy, Medtronic, Perrigo, Reynolds Consumer Products, Under Armour, UPS, and Western Union as well.

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.