Insider buying always draws interest from investors. Insiders can sell for a whole host of reasons: Making other investments, buying a house and paying for life’s expenses. Further, it doesn’t necessarily mean that the insider believes the stock will move lower. More likely, the stock is a large part of their compensation package.
However, insiders generally buy for one reason: Because they believe the stock price is going higher.
Insider selling can raise suspicion or create panic. But as outlined above, there can be many reasons to sell. Because insider buying really only occurs when an insider views their stock as undervalued, it creates a lot of interest.
Here’s some of the latest insider buying that we’re seeing.
Kimbal Musk is Elon Musk’s brother and has been a director for Tesla since 2004. He’s also on the board of Elon Musk’s other company, SpaceX, and served on the board of Chipotle (US:CMG) for five years from 2014 to 2019.
Kimbal is one of the largest individual shareholders of Tesla stock, with his latest purchase pushing his stake to 536,240 shares. It’s typical for insiders to exercise their call options, then sell the stock outright. That doesn’t appear to be Musk’s intention, though.
Earlier this year, he found himself in hot water after an SEC investigation for insider trading. That came after Kimbal Musk offloaded 88,500 shares valued at more than $100 million on Nov. 5, 2021. That came just days after the stock hit an all-time high and one day before his brother Elon Musk’s infamous Twitter (US:TWTR) poll asking if he should sell 10% of his Tesla stake.
Heritage-Crystal Clean (HCCI)
Musk’s options exercise may not be the typical insider buying activity we see. However, there was some actual insider buying at Heritage-Crystal Clean (US:HCCI) this week.
On July 27, CEO Brian Recatto scooped up 150,000 shares with a cost basis of $27. Good for a purchase price of $4.05 million, Recatto boosted his stake to 820,505 shares.
It was a significant move for Recatto, who increased his position by roughly 22%. Regatta is easily the largest individual shareholder of the stock, with COO Gregory Roy being the next largest holder with 168,446 shares.
With a market cap of just $813 million, Heritage-Crystal Clean is not the most well-known company. But despite its size, the stock has held up pretty well. Shares are down just 7.5% from the all-time highs and have rallied 10% in two days since reporting earnings on July 27th.
United Airlines (UAL)
On July 26 and 27th, Shapiro scooped up 25,000 shares daily with a cost of between $35.63 and $35.84. The two-day, 50,000 share purchase pushed his total stake up to 150,000.
In other words, he upped his position by 50%. However, that’s not the only purchasing he’s done lately.
Shapiro bought 25,000 shares on June 2 and another 25,000 shares a day later on June 3rd. 10 days later, on June 13, Shapiro bought 50,000 shares at an average price of $37.68.
He has been averaging down on his position so far with each purchase. Whether that’s intentional or not, we don’t know.
Texas Capital Bancshares (TCBI)
Over several days, Stallings has reported via various Form 4 filings the buying of Texas Capital Bancshares common stock (TCBI) and dispensary shares for Series B preferred stock.
Between July 22 and July 27, Stallings significantly increased his stake in both classes of stock.
Specifically, he bought 42,000 shares of common stock on July 22, then acquired another 21,000 shares between July 26 and 27th. That raised his stake to 132,725 shares — almost doubling his previous position of 69,725.
As for the Series B preferred shares, Stallings initiated a position on July 25 with the purchase of 2,430 shares and bought another 1,000 shares on July 27th. He was also awarded 1,100 shares on July 26th.
The move may be notable for investors as Stallings is the largest individual shareholder in Texas Capital Bancshares, a company with a $2.93 billion market cap. In all, he plunked down $3.64 million on his recent purchases.
Jefferies Financial Group (JEF)
Last, we have Jefferies Financial Group (US:JEF), which saw director Thomas Jones step up and buy 40,000 shares on July 25th.
Jones, who was appointed to the board of directors in March 2022, scooped up his 40,000 shares at an average cost of $31.21. That works out to a $1.248 million purchase.
It’s not his only purchase, as Jones had previously bought 10,000 shares on March 31st.
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