- Insider buying can be an encouraging signal for potential investors, especially when markets are near all-time highs.
- Initial and secondary public offerings enticed insiders to come out and buy shares this past week.
- Besides IPOs, biotechs and special purpose acquisition companies are well represented on this week’s list.
Conventional wisdom says that insiders and 10% owners really only buy shares of a company for one reason — they believe the stock price will rise and they want to profit from it. So insider buying can be an encouraging signal for potential investors, particularly when there is uncertainty in the markets or the markets are near all-time highs.
Note that with a new earnings-reporting season about to begin, many insiders will be prohibited from buying or selling shares. Here are some of the most noteworthy insider purchases that were reported in the past week.
Krispy Kreme Inc (NASDAQ: DNUT) Board Chair Olivier Goudet purchased more than 294,100 shares during the week, and a 10% owner affiliated with former parent JAB Holding picked up over 5.88 million shares as well. At a price of about $16.02 apiece, the cost of those shares totaled more than $98.96 million altogether. Note that the stock closed the week at $19.29 per share.
Several beneficial owners and directors of newly public Acumen Pharmaceuticals Inc (NASDAQ: ABOS) acquired more than 3.29 million of its shares altogether. At the initial offering price of $16.00 per share, the transactions added up to approximately $52.66 million. The stock was last seen trading at $18.90 per share.
The recent purchase of more than 544,100 Kymera Therapeutics Inc (NASDAQ: KYMR) shares by a director in a secondary offering priced at $47.00 per share totaled more than $25.57 million. Note that the biotech’s chief executive officer parted with 48,000 shares more recently. The stock closed on Friday at $52.77 a share.
Daniel Loeb, a SentinelOne Inc (NYSE: S) beneficial owner, indirectly acquired almost 227,900 shares last week at about $49.52 apiece. That cost him over $11.28 million. The founder of Third Point also bought almost 943,600 shares of this cybersecurity provider in the previous week at the IPO price of $35.00.
Another biotech, Cerevel Therapeutics Holdings Inc (NASDAQ: CERE), saw a director take advantage of a secondary offering to indirectly add 200,000 shares at $25 apiece. That totaled $5.00 million and lifted that director’s stake to more than 4.84 million shares. Note that the stock is up about 64% in the past month.
In the latest in a number of purchases during May and June, a Cricut Inc (NASDAQ: CRCT) 10% owner picked up over 121,600 more shares at prices ranging from $33.20 to $34.99 apiece. These latest purchases added up to around $4.14 million. Note that the stock was trading at less than $28 when that owner began buying the shares.
A Rain Therapeutics Inc (NASDAQ: RAIN) director returned to the buy window last week. The more than 269,700 shares of this oncology-focused company acquired, at a per-share price of $15.25, cost that director more than $4.11 million. Note that the same director added over 317,000 in the prior week, as well as more shares back in May.
Jim Cramer recently was positive about special purpose acquisition company TPG Pace Beneficial Finance Corp (NYSE: TPGY) despite a merger with EVBox possibly falling apart. Last week, a 10% owner added about 251,900 shares for almost $3.29 million, or around $13 apiece.
Fast Acquisition Corp (NYSE: FST) had a beneficial owner return to indirectly add about 267,500 additional shares last week. That cost that owner more than $3.63 million, at share prices ranging from $13.36 to $13.78. Its planned merger includes Bubba Gump Shrimp, Joe’s Crab Shack, Golden Nugget Casino and other brands.
Note that some smaller amount of insider buying at Consolidated Edison, Inc. (NYSE: ED), EnLink Midstream LLC (NYSE: ENLC), GlaxoSmithKline plc (NYSE: GSK), Piedmont Lithium (NASDAQ: PLL) and SVB Financial Group (NASDAQ: SIVB) was reported in the past week as well.
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