- Insider buying can be an encouraging signal for potential investors.
- A couple of companies saw insiders returning to the buy window last week.
- One director bought shares of two of this companies in the past week.
Conventional wisdom says that insiders and 10 percent 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 with markets at all-time highs.
Here's a look at a few notable insider purchases reported in the past week.
Take-Two Interactive Software
TAKE-TWO INTERACTIVE SOFTWARE, INC (NASDAQ: TTWO) saw a director step up to the buy window again this past week. The approximately 1,100 shares of this videogame maker acquired, at per-share prices ranging from $132.99 to $134.00, cost the director less than $148,000. But note that this followed a nearly $9.9-million purchase by the same director in the previous week.
A weak outlook and a delayed game launch tripped up rival Electronic Arts last week. Take-Two stock ended the week trading at $133.56, still within the director's latest purchase price range. The stock has changed hands between $92.81 and $138.65 in the past year, and the analyst's mean price target is $137.60.
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Keurig Dr Pepper
Keurig Dr Pepper Inc (NYSE: KDP) saw two executives and a director increase their stakes last week. The more than 53,700 shares of this Vermont-based beverage company acquired, at per-share prices between $22.95 and $23.18, cost them more than $1.2 million. And note that one of those executives and that same director also bought more than $1.2 million worth of shares earlier in the month.
Soft drink giant Coca-Cola made a large acquisition last week. Keurig Dr Pepper shares slipped less than 2 percent in the past week, and they were last seen trading at $22.80 apiece. That was below the above-mentioned purchase price range. The analyst's mean price target is $24.92.
A Coty Inc (NASDAQ: COTY) director picked up 5,000 shares of this beauty company and beneficial owner JAB Cosmetics (which has a stake near 40 percent) added more than 1.57 million shares last week. The share prices for these purchases ranged from $12.00 to $13.34, and the transactions totaled more than $19.6 million altogether. That director was the same one buying Keurig Dr Pepper shares last week.
Coty recently posted disappointing second-quarter results, but Morgan Stanley upgraded the stock last week. The share price jumped about 7 percent but gave up most of that gain during the week and closed on Friday at $12.36. While the stock has traded as high as $21.68 a share in the past year, the analysts' mean price target is just $14.45.
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