Investing
Buffett Can't Get Enough of This Stock, Plus Other Insider Buying
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The Oracle of Omaha has once more bolstered his stake in a media giant’s tracking stocks. However, Warren Buffett is not the only 10% owner or other insiders who made notable insider purchases in the past week or so.
A well-known adage reminds us that corporate insiders and 10% owners really only buy shares of a company because they believe the stock price will rise and they want to profit from it. Thus, insider buying can be an encouraging signal for potential investors. This is all the more so during times of uncertainty in the markets, and even when markets are near all-time highs.
Remember that even as the earnings-reporting season winds down, some insiders are prohibited from buying or selling shares. Below are some of the more notable insider purchases that were reported in the days leading up to the ides of March, starting with the largest one.
Liberty Media
- Buyer(s): 10% owner Berkshire Hathaway
- Total shares: more than 5.9 million
- Price per share: $29.32 to $30.00
- Total cost: almost $176.7 million
After scooping up almost $63.9 million of Liberty Media Corp. (NASDAQ: LSXMK) stock last week, Berkshire Hathaway has increased its stake in the holding company again to over 56.6 million shares. The series C shares were last seen trading near the top of that purchase price range. However, the share price is up only about 3.4% since the beginning of the year. Note that Liberty Media and Sirius XM Holdings Inc. (NASDAQ: SIRI) plan to merge, and Liberty Media recently completed an acquisition of its own. Also note that Buffett has a secret stock he’s been hiding, and here are three stocks it could be.
More Liberty Media
- Buyer(s): 10% owner Berkshire Hathaway
- Total shares: more than 3.7 million
- Price per share: $29.45 to $30.00
- Total cost: around $111.4 million
Buffett also has increased the stake in Liberty Media Corp. (NASDAQ: LSXMA) again to more than 28.9 million shares. This after picking up almost $43.6 million worth last week. Here too, the shares of this holding company were last seen trading near the top of the purchase price range, even though the stock has slipped marginally in the past month. As mentioned above, Liberty Media and Sirius XM are in the process of merging, and Liberty Media also recently posted its fourth-quarter and 2023 results.
Corbus Pharmaceuticals
- Buyer(s): 10% owner Cormorant Asset Management
- Total shares: 550,000
- Price per share: $37.53 to $46.00
- Total cost: over $23.3 million
This Massachusetts-based clinical-stage biopharmaceutical company also just posted its quarterly results and recently appointed a new chief medical officer. Corbus Pharmaceuticals Holdings Inc. (NASDAQ: CRBP) stock surged on the release of positive clinical trial data back in January. Shares are up about 647% year to date but are still within this buyer’s purchase price range. The consensus price target of $55.00 indicates analysts see almost 28% upside for the next 12 months. That target would be a 52-week high.
Archer Aviation
- Buyer(s): 10% owner Stellantis
- Total shares: 3.2 million
- Price per share: $4.37 to $5.55
- Total cost: around $15.8 million
The parent company of Chrysler, Jeep, Fiat and others has boosted its stake in Archer Aviation Inc. (NYSE: ACHR) to more than 37.8 million shares. The electric aircraft maker partnered with NASA earlier this year and recently announced the building of infrastructure in Dubai. The stock is down more than 20% year to date but still within the buyer’s purchase price range. The stock has a Buy recommendation from the consensus of analysts. Their mean price target of $9.36 suggests more than 91% upside potential in the next 12 months.
Globalstar
- Buyer(s): a director
- Total shares: over 2.6 million
- Price per share: $1.30 to $1.45
- Total cost: more than $3.6 million
This satellite services provider posted record revenue for 2023 and selected a new chief executive officer last year. Globalstar Inc. (NYSE: GSAT) shares are trading within the purchase price above despite being down more than 27% since the beginning of the year. The share price is still up over 22% year over year, about the same as the Dow Jones industrial average. The consensus recommendation is to buy shares, and the analysts’ mean price target is almost 18% higher than the current share price.
EchoStar
- Buyer(s): a director
- Total shares: 200,000
- Price per share: $13.12 to $13.54
- Total cost: more than $2.6 million
EchoStar Corp. (NASDAQ: SATS) acquired Dish Network earlier this year, and following a quarterly report, this director and founder has scooped up some shares. Since the beginning of the year, the stock is down over 14%, but the share price is higher than the purchase price range above. Analysts have a consensus rating of Buy, and their $21.18 mean price target represents a gain of nearly 50% in the coming year.
And Other Insider Buying
In the past week or so, some insider buying was reported at Arch Resources, Biglari Holdings, Bowlero, Celanese, Crocs, Elanco Animal Health, Green Brick Partners, Herbalife, Keurig Dr Pepper, Lions Gate Entertainment, Roku, and Tecnoglass as well.
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