Top Insider Purchases in December Signal Market Confidence

So far in December, the biggest reported insider buying came from beneficial owners boosting stakes in GE Aerospace (NYSE: GE), Hycroft Mining Holding Corp. (NASDAQ: HYMC), and Universal Technical Institute Inc. (NYSE: UTI). While these were the most prominent insider purchases in that time, there were a number of other notable ones as well.

While insider buying is typically slower when markets are near all-time highs and during earnings-reporting season, it never seems to dry up altogether. These recent notable purchases attest to this. Let’s take a quick look at these transactions and others.

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.

Though the third-quarter earnings-reporting season is winding down, some insiders are still prohibited from buying or selling shares. Below are some of the most notable insider purchases that were reported recently, starting with the largest and most prominent.

Universal Technical Institute

• Buyer(s): 10% owner Coliseum Capital Management
• Total shares: almost 1.3 million
• Price per share: $23.01 to $25.50
• Total cost: more than $30.8 million

This Arizona-based technical training services provider recently posted better-than-expected quarterly results. However, weak guidance dragged on the shares, and this beneficial owner took advantage to boost its stake to almost 3.8 million shares.

The stock pulled back more than 22% after the earnings report, but it has recovered somewhat and was last seen trading within the purchase price range above. Analysts have a $37.33 mean price target, meaning they see 46.4% upside in the coming 12 months. Their consensus recommendation is to buy shares.

Note that this same buyer also picked up shares of Owens & Minor Inc. (NYSE: OMI) and Sonos Inc. (NASDAQ: SONO) earlier this year.

GE Aerospace

• Buyer(s): 10% owner General Electric Pension Trust
• Total shares: almost 9,800
• Price per share: $1,021.93
• Total cost: $10.0 million

The successor to the former iconic General Electric conglomerate has seen its share price drift lower since its most recent quarterly report in late October. The stock is down 6.8% in the past month, but it is still up 102.7% since the GE split-up in April of 2024.

Analysts anticipate the stock will rise 19.2% in the next 12 months to their mean price target of $339.69. Their consensus recommendation is to buy shares. Susquehanna just initiated coverage with a Positive rating and a $350 price target.

The GE Pension Fund manages and invests assets to provide retirement, health, and welfare benefits to eligible current and former employees of General Electric and related companies. Its stake in GE Aerospace is up to nearly 185,000 shares.

Hycroft Mining

• Buyer(s): 10% owner Eric Sprott
• Total shares: over 2.3 million
• Price per share: $10.30
• Total cost: more than $24.1 million

Back in October, this Nevada-based miner raised approximately $150 million from a public offering of shares at $6.50 apiece, and this beneficial owner boosted his Hycroft Mining stake then as well. The company afterward announced that it had extinguished all its remaining debt. Sprott’s stake is now up to more than 29.4 million shares.

The stock is 105.8% higher than 90 days ago and was last seen trading about a dollar per share higher than the buyer’s latest purchase price. The share price is up 409.9% year over year. The stock has little analyst coverage and no Buy ratings. Yet, the consensus price target is up at $13.26. That suggests 10.5% further upside in the coming year.

Note that this Canadian billionaire also purchased $62 million worth of the shares this past summer.

And Other Insider Buying

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

Recently, some smaller insider buying was reported at Arbor Realty Trust, Atlassian, Elastic, Energizer, Fiserv, GXO Logistics, Herbalife, Johnson & Johnson, NXP Semiconductors, Rapid7, and SunocoCorp as well.

Big Insider Purchases by Carl Icahn, Mario Gabelli, and Others