Despite Huge Market Rally, Insider Buying Consistent Again

Investing

Published: October 25, 2014 9:10 am

Last Updated: October 25, 2014 11:18 am

It made sense to see insiders buying stock when the market plunged 7% quickly, but after one of the best weeks for investors in the market since 2013, insider buyers were still out in force, purchasing shares of some top stocks. Some of the buyers are coming back to the well again and again. That may be very positive for investors currently holding shares.

We track insider buying on a weekly basis here at 24/7 Wall St. While it is not always a leading indicator, solid high-level insider buying does show conviction in a company, and in turn a company’s prospects.

Here are the top insider buying purchases reported this past week.

Sears Holdings Corp. (NASDAQ: SHLD) continues to show up on our screens almost every week. The iconic American retailer has teetered on prospects for the future, as it continues to close stores and lay off workers. A 10% owner, B. Berkowitz, bought 403,600 shares of the company at prices ranging from $32.80 to $35.38. The total purchase came to $13.8 million. Sears closed trading Friday at $38.97, so it looks like a well-timed buy.

Allison Transmission Holdings Inc. (NYSE: ALSN) is another company that continues to hit our insider buying screens frequently. ValueAct Holdings, which is already a 10% owner of the company, added 100,000 more shares to current holdings at $26.76. The total came to $2.7 million. Allison was trading at Friday’s close at $29.65, so another seemingly well-timed buy.

ALSO READ: High-Profile Insider Selling Picks Up as Market Has Best Week Since 2013

Mattel Inc. (NASDAQ: MAT) saw a director buy some stock ahead of the busy holiday season. Christopher Sinclair bought 8,686 shares of the famous toy maker’s stock at $28.90. The total purchase came to $250,000. Mattel shares ended trading on Friday at $30.31.

Entegris Inc. (NASDAQ: ENTG) is another company that has hit our insider screen numerous times over the past month. The chip equipment company saw a 10% owner, GMT Capital, add to its holdings. The company bought an additional 123,600 shares at $10.83., for a total cost of $1.3 million. Entegris shares ended the week at $11.96, so yet another timely purchase this week.

Other companies that saw insider buying this week included: American Realty Capital Properties Inc. (NASDAQ: ARCP), Huntington Bancshares Inc. (NASDAQ: HBAN), Air T Inc. (NASDAQ: AIRT), Steel Partners Holding L.P. (NASDAQ: SPLP) and Bank of South Carolina Corp. (NASDAQ: BKSC).

Buying into the teeth of a big market rally is a very positive sign for investors. It will remain interesting to see if insider buying is maintained if the market continues its hot streak.

ALSO READ: 6 Analyst Stocks Under $10 With Huge Upside Calls

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