Investing

Massive Icahn Trade Highlights Insider Buying: Herbalife, CBRE, Colliers International, Freeport McMoRan, NuVasive and More

Lee Jackson

Published: November 6, 2016 10:05 am

Last Updated: January 13, 2020 1:27 am

It has become pretty clear that the markets and most investors are more than ready to get the election over with. Volatility spiked sharply last week, and stocks continued a downward trend. With earnings for the third quarter wrapping up, executives and 10% owners that are insiders are once again free to trade shares, and volume is starting to pick up again.

We cover insider buying each 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 itself a reason to run out and buy a stock. 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.

Here are some of the companies that reported notable insider buying last week.

Herbalife

A 10% owner and one of the biggest defenders of Herbalife Ltd. (NYSE: HLF) come in a make another huge purchase last week. Wall Street legend Carl Icahn bought a gigantic 1,832,402 shares of the company at a price of $54.70 per share. The total for the buy was a staggering $100,232,389.

Icahn has been in a running battle with Bill Ackman over the viability of the company, and he now owns 23.1% of the shares. The stock closed Friday at $54.96.

CBRE

A top hedge fund stepped in last week and bought a huge block of CBRE Group Inc. (NYSE: CBG) shares. Value Act acquired a total of 2,217,190 shares of the company at between $25.80 and $25.99 a share. The total for the buy was posted at a gigantic $57 million.

CBRE operates as a commercial real estate services and investment company worldwide. It offers advisory services, such as strategic advice and execution to owners, investors and occupiers of real estate in connection with leasing, disposition and acquisition of property, as well as integrated investment sales and debt/structured financing services under the CBRE Capital Markets brand. Its shares closed last Friday at $26.42.

Colliers International

Another top real estate firm that saw massive buying last week was Colliers International Group Inc. (NASDAQ: CIGI). Spruce Holdings bought a total of 876,357 shares of the stock at prices that ranged from $34.65 to $40.19. The total for the purchase was set at $37 million.

This company provides commercial real estate services to real estate occupiers, owners and investors worldwide. The Sales and Lease Brokerage Division offers transaction brokerage services, including landlord representation, tenant representation and capital markets and investment services, as well as property management, leasing and valuations. Its Outsourcing & Advisory Services Division offers corporate solutions, such as portfolio management, transaction management, project management, workplace solutions, strategic consulting, property and asset management, and other corporate real estate services. The stock ended last week trading at $36.05 a share.

Freeport-McMoRan

Freeport-McMoRan Inc. (NYSE: FCX) saw a member of the board of directors buying shares last week. That director picked up a 150,000-share block of the stock at prices that fell between $10.68 and $10.78. The total for the purchase was reported right at $2 million.

This natural resource company, acquires, explores and develops mineral assets, and oil and natural gas resources. Freeport-McMoRan explores for copper, gold, molybdenum, cobalt hydroxide, silver and other metals, as well as oil and gas. The stock closed last Friday at $11.05.

NuVasive

NuVasive Inc. (NASDAQ: NUVA) was crushed recently and shareholders will be pleased to know that two board of director members and an executive vice president at the company all purchased shares last week. The trio bought a total of 26,172 shares at prices that ranged from $57.41 to $59.68. The total for the combined buys was posted at $1.5 million.

This medical device company develops and markets minimally disruptive surgical products and procedurally integrated solutions for spine surgery. Its products focus on applications for spine fusion surgery, including biologics used for spinal fusion process. Its stock closed Friday at $58.30.

Abbott Laboratories

A director at medical giant Abbott Laboratories (NYSE: ABT) was buying stock last week. That director bought a total of 5,100 shares of the company at $38.24 apiece. The total for the trade was set at $200,000. The stock closed Friday at $39.09.

These companies also reported insider buying last week: DDR Corp. (NYSE: DDR), Medley Capital Corp. (NYSE: MCC), Newell Brands Inc. (NYSE: NWL) and Tuesday Morning Corp. (NASDAQ: TUES) and Williams Companies Inc. (NYSE: WMB).

Despite the heightened volatility, insiders were out in full force buying shares last week, and this is very positive for the overall market. The uncertainty caused by the election will soon pass, and when the dust settles, it could be the pause that refreshes.