Beneficial owners, including giant automaker Stellantis, portfolio managers, and an activist investor, have bolstered their stakes with huge insider purchases reported in the past week. While some other insiders were selling shares, these major shareholders showed their love for two retailers, boat and aircraft makers, tech companies, and a miner.
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 insider buying and selling is prohibited. Below are some of the more notable insider purchases that were reported after the ides of March, starting with the largest one.
Cardlytics
- Buyer(s): 10% owner Clifford Sosin
- Total shares: more than 1.0 million
- Price per share: $13.39 to $14.16
- Total cost: over $13.9 million
This investment manager increased his stake in Cardlytics Inc. (NASDAQ: CDLX) to almost 6.4 million shares. The advertising technology company shared its most recent quarterly results last week, and the stock is up more than 76% since then and just hit a multimonth high of $16.69. Note that shares traded above $155 apiece in early 2021. Analysts now see them going as high as $18 in the next 12 months, and the consensus recommendation is to buy shares.
Dick’s Sporting Goods
- Buyer(s): 10% owner William Colombo, Trustee
- Total shares: 40,000
- Price per share: $213.93
- Total cost: almost $8.6 million
Other insiders have been selling Dicks Sporting Goods Inc. (NYSE: DKS) shares following strong fourth-quarter results, but this buyer increased a stake in the retailer to over 8.8 million shares. Shares were last seen trading above the buyer’s purchase price range. The stock is up 49% or so since the beginning of the year and hit a multiyear high of $224.72 recently. Note that the consensus price target is less than 3% higher than the current share price.
Archer Aviation
- Buyer(s): 10% owner Stellantis
- Total shares: 1.5 million
- Price per share: $4.84 to $5.33
- Total cost: more than $7.6 million
After scooping up almost $16 million worth of shares last week, the parent company of Chrysler, Jeep, Fiat and others has boosted its stake in Archer Aviation Inc. (NYSE: ACHR) again to more than 39.3 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 17% 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 about 85% upside potential in the next 12 months.
Alpha Metallurgical Resources
- Buyer(s): a director
- Total shares: 15,000
- Price per share: $291.20 to $300.28
- Total cost: over $4.4 million
This director and beneficial owner bucked the trend, as other insiders have been selling Alpha Metallurgical Resources Inc. (NYSE: AMR) shares this month. The Tennessee-based mining company posted better-than-expected quarterly earnings and reduced the size of its board of directors last month. A stock retreated after the report and is now down more than 3% year to date but well above the buyer’s purchase price range. The only consensus price target is $381.00, which indicates one analyst sees more than 16% upside for the next 12 months. That target is less than the 52-week high, though.
Citi Trends
- Buyer(s): 10% owner Fund 1 Investments
- Total shares: more than 110,900
- Price per share: $26.74 to $29.51
- Total cost: almost $3.2 million
This beneficial owner and activist investor aims to shake up the Citi Trends Inc. (NASDAQ: CTRN) board of directors. The retailer fell short of Wall Street estimates in its recent fourth-quarter report. The stock pulled back afterward and is now down marginally year to date, but the share price was last seen still within the buyer’s purchase price range. The stock is more than 33% higher than a year ago, outperforming the S&P 500 in that time. The $30.75 consensus price target represents 10% upside potential. Besides buying more than $45 million worth of Citi Trends shares earlier this month, this buyer has also acquired some shares of Tillys Inc. (NYSE: TLYS) and Tile Shop Holdings Inc. (NASDAQ: TTSH).
MasterCraft
- Buyer(s): 10% owner Coliseum Capital Management
- Total shares: less than 142,800
- Price per share: $20.66 to $22.05
- Total cost: nearly $3.1 million
This recreational boat maker posted strong quarterly results recently, and a new chief executive officer took up the reins this week. MasterCraft Boat Holdings Inc. (NASDAQ: MCFT) shares are trading about a dollar a share above the buyer’s purchase price and are almost 2% higher year to date. The share price is still down over 28% year over year. The consensus recommendation is to buy shares, though the analysts’ mean price target is less than 4% higher than the current share price.
NextNav
- Buyer(s): 10% owner Joseph D. Samberg and a director
- Total shares: 633,000
- Price per share: $4.05 to $4.91
- Total cost: almost $2.9 million
While other insiders were selling NextNav Inc. (NASDAQ: NN) shares, portfolio manager Samberg boosted his stake to 9.8 million shares. A new CEO was appointed back in November, and the Virginia-based tech company recently posted mixed quarterly results. Since the beginning of the year, the stock is up 27% or so, and the share price is more than 15% higher than the top of the purchase price range above. Analysts have a consensus rating of Buy but no mean price target. The all-time high near $11 a share was seen back in 2021.
And Other Insider Buying
In the past week or so, some insider buying was reported at Advance Auto Parts, AIG, America’s Car-Mart, Arrowhead Pharmaceuticals, Biglari Holdings, Core Scientific, Dollar Tree, Consolidated Edison, Guardant Health, L3Harris Technologies, Rocket Companies, Sunrun, Teradyne, and VICI Properties as well.
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