Insider buying has been slow this past month, as buy windows close as the new earnings-reporting season gets underway. However, there have been some notable, large purchases nonetheless. Stock offerings prompted some huge purchases from insiders. So did the appointment of a chief executive officer.
24/7 Wall St. Key Points:
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Insider buying has been slow lately.
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Stock offerings prompted some huge purchases from insiders.
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Those insiders included a CEO and some beneficial owners. Let’s take a quick look at these notable transactions of the past week.
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.
As mentioned, the second-quarter earnings-reporting season is underway, so 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.
Carlsmed
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Buyer(s): four directors
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Total shares: more than 1.8 million
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Price per share: $15.00
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Total cost: around $28.1 million
These buyers bought into the Carlsmed Inc. (NASDAQ: CARL) initial public offering. The California-based commercial-stage medical technology company is pioneering AI-enabled personalized spine surgery solutions. The IPO proceeds were intended to support the expansion of commercial operations and continued investment in research and development, regulatory submissions, and clinical data generation.
So far, shares have ranged from $13.95 to $15.19 apiece, and the price was last seen near $14.40, below the offering price.
The company just announced the successful completion of the first aprevo cervical procedure. Aprevo devices are designed to match the unique anatomical and alignment needs of each patient through Carlsmed’s proprietary AI-powered surgical planning platform and digital production system. The company expects a U.S. commercial launch for the device in 2026.
Note that the lion’s share of the insider purchases mentioned above (over 1.3 million) came from one director, who has a stake of more than 5.0 million shares. The company has about 26.5 million shares outstanding.
MicroStrategy
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Buyer(s): CEO Phong Le and others
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Total shares: almost 242,900
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Price per share: $90.00
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Total cost: more than $21.8 million
A handful of executives and directors took advantage of the latest MicroStrategy Inc. (NASDAQ: MSTR) stock issuance. The offering raised around $2.5 million, intended to support the company’s ambition to aggressively expand its cryptocurrency holdings.
After recently hitting a year-to-date high above $457, the stock has pulled back more than 13% ahead of the release of its second-quarter results. The consensus price target is up at $547.92, suggesting analysts see around 38% upside potential in the next 12 months. Of 13 analysts that cover the stock, 12 recommend buying shares, four of them with Strong Buy ratings.
Note that the largest of the purchases above was 220,000 shares for about $19.0 million by one director. The CEO acquired 5,500 shares.
Sonos
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Buyer(s): 10% owner Coliseum Capital Management
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Total shares: over 1.7 million
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Price per share: $9.77 to $10.36
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Total cost: more than $19.0 million
Sonos Inc. (NASDAQ: SONO) just named its interim CEO, Tom Conrad, to the role permanently. Since he took up the interim CEO position in January, the wireless audio products maker has set a new standard for the quality of its software and product experience, cleared the path for a robust new product pipeline, and launched innovative new software enhancements to its flagship products.
The share price is 21.5% higher than 90 days ago, about the same as the Nasdaq. However, the stock is down 25.5% year to date. The $11.62 consensus price target indicates that analysts currently see little upside potential in the next 12 months. Only two of five analysts recommend buying shares.
Note that this buyer also recently reduced its stake in building products supplier GMS Inc. (NYSE: GMS).
DiaMedica Therapeutics
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Buyer(s): three 10% owners
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Total shares: about 4.8 million
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Price per share: $3.50
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Total cost: around $16.8 million
Clinical-stage biopharmaceutical company DiaMedica Therapeutics Inc. (NASDAQ: DMAC) had a private placement of 8.6 million common shares, raising $30.1 million. The Minneapolis-based company is focused on developing novel treatments for preeclampsia, fetal growth restriction, and acute ischemic stroke.
Despite pulling back 9.3% in the past week, the share price is 7.2% higher than 90 days ago. Year over year, it is up 23.3% to about a dollar more than the offering price. All three analysts who cover the stock recommend buying shares and have maintained those ratings recently. They have a consensus price target of $9.67, which suggests they anticipate upside of 117.3% in the next 52 weeks.
And Other Insider Buying
Some smaller insider buys at Dave & Buster’s, Kinder Morgan, and more.
In the past week, some insider buying was reported at Asana, Centene, Chubb, Cintas, Dave & Buster’s Entertainment, Enterprise Products Partners, Healthpeak Properties, Kinder Morgan, McGraw Hill, Meritage Homes, NovaGold Resources, Simply Good Foods, and Synovus Financial as well.
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The post These 4 Stocks Are Seeing Huge Insider Buying appeared first on 24/7 Wall St..
