Investing

Big Buffett and Icahn Trades Highlight Insider Buying: Phillips 66, Hertz, Bank of New York Mellon, Advance Auto Parts and More

Lee Jackson

Published: June 12, 2016 10:10 am

Last Updated: January 13, 2020 6:54 am

This past week started to resemble just what we have expected the rest of the summer to look like: volatile, with more coming. The market ran up right near all-time highs, and the buying looked serious. Then the sellers stepped in.

One thing’s for sure, the political table looks set for the general election, and combining that with a possible British exit from the European Union and a rate hike, and you have all the ingredients for higher volatility.

Despite last week’s ups and downs, big-time insiders were big-time buyers.

We cover insider buying each and every week at 24/7 Wall St., and we like to remind readers that while insider buying is usually a very positive sign, it is not in of itself a reason to run out and buy a stock without making several considerations.

Sometimes insiders and 10% owners have stock purchase plans set up at intervals to add to their holdings. That aside, it still remains an overall positive indicator. And most investors think that if an insider was going to buy shares around bad news that perhaps they would buy into their company’s stock after the news hits rather than before.

Here are some of the companies that reported notable insider buying during the week ending June 10, 2016.

Phillips 66

Phillips 66 (NYSE: PSX) had a big time buyer on the desk once again this past week, and just like in all of 2016, the share count is huge.

Warren Buffett’s Berkshire Hathaway, which is now a 10% owner of this energy manufacturing and logistics company, was busy buying 469,604 shares of the company at prices between $79.91 and $80.71.

The total for the trade came to $38 million. Phillips 66 operates through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties (M&S). The stock closed the day on Friday at $80.07.

Hertz Global

Because Hertz Global Holdings Inc. (NYSE: HTZ) has struggled terribly over the past year, shareholders may be pleased to know that Wall Street legend and renowned investor Carl Icahn, who is also a 10% owner of the company, bought shares last week.

Icahn purchased a total of 983,929 shares at prices between $9.88 and 9.96. The total for the buy was posted at $10 million. Icahn now owns a 15.24% stake in Hertz after the purchase.

Hertz closed Friday at $10.68, so the timing looks very solid.

Bank of New York Mellon

A director at Bank of New York Mellon Corp. (NYSE: BK), Trian Fund Management, was buying shares in a big way last week.

A total of 370,000 shares of the stock was acquired, at prices that ranged from $41.73 to $42.61 per share.

The total for the buy was a solid $16 million. The stock closed trading on Friday at $41.24.

Advance Auto Parts

For the second time in the last month, Advance Auto Parts Inc. (NYSE: AAP) hits our screens. A director bought a 100,000 share block of the stock at $152.88 apiece.

The total for the trade came in just north of $15 million. In addition the CEO bought 6,700 shares at $150.82, for a total purchase of $1 million.

Advanced Auto Parts supplies automotive replacement parts, accessories, batteries and maintenance items for domestic and imported cars, vans, sport utility vehicles and light and heavy-duty trucks.

Shares of Advanced Auto Parts closed Friday at $153.02.

Lands’ End

Another well-known investor was buying shares Lands’ End Inc. (NASDAQ: LE) last week. Eddie Lampert, the man whom you know as the guy who has presided over the long slow death of Sears, picked up 492,182 shares of the multi-channel retailer. Lampert bought shares at prices that ranged from $15.81 to $16.42. That cost him right at about $8 million.

The company offers casual clothing, accessories, footwear and home products via e-commerce, direct mail catalogs, dedicated Lands’ End Shops at Sears, stand-alone stores and international shop-in-shops.

Shares of Land’s End closed at $15.71 on Friday.

And Others

These companies also reported insider buying last week:

• Clayton Williams Energy Inc. (NYSE: CWEI),
• Crestwood Equity Partners L.P. (NYSE: CEQP),
• Endurance Specialty Holdings Ltd. (NYSE: ENH),
• Medicines Co. (NASDAQ: MDCO),
• and Sears Holdings Corp. (NASDAQ: SHLD).

The buyers were out in force last week, and continued to plow cash into stocks despite the indexes almost reaching new all-time highs. This is a bullish sign for equity investors to see this much buying near the top. The question of course, is will it stay strong?

Top insider selling for the week ending June 10 included shares of MSCI, Insperity, Best Buy, Cisco and several more companies.

The insider buying report for the week ending June 3 also included Warren Buffett on Phillips 66. Other stocks seen with considerable insider buying (and covered in detail) were Pandora, Sears, Advance Auto Parts and several more key companies.