Although the number and size of insider purchases have been somewhat lower as the second quarter begins, the following beneficial owners and other insiders were still showing their love for these five stocks. The buyers include renowned billionaire investor Mario Gabelli and French energy giant TotalEnergies.
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 some insider buying and selling will be prohibited as the first-quarter earnings-reporting season begins next week. Below are some of the more notable insider purchases that were reported as the second quarter got underway, starting with the largest one.
GAMCO Natural Resources, Gold & Income Trust
Insider buying at this mutual fund.
- Buyer(s): 10% owner Mario Gabelli
- Total shares: 870,000
- Price per share: $10.00
- Total cost: $8.7 million
Closed-ended equity mutual fund GAMCO Natural Resources, Gold & Income Trust (NYSE: GNT) is managed by Gabelli Funds, and Mario Gabelli’s purchases from February were reported last week. Shares are up more than 8% since those purchases, outperforming the broader markets. Note that the yield is about 7.4% and the fund makes monthly distributions. And note as well that Gabelli also bought 500 shares of Atlanta Braves Holdings Inc. (NASDAQ: BATRA) in the past week. (Want $5,000 in passive income? Invest $5,000 in these seven mutual funds.)
Boundless Bio
Jumping on biotech IPO.
- Buyer(s): 10% owners Arch Venture Fund IX and RA Capital Management
- Total shares: 512,500
- Price per share: $16.00
- Total cost: $8.2 million
These beneficial owners bought into the Boundless Bio Inc. (NASDAQ: BOLD) initial public offering. The clinical-stage biotech company is based in San Diego and says it is dedicated to unlocking a new paradigm in cancer therapeutics. Shares slumped after they began trading publicly and were last seen at about $13 apiece. There is no consensus price target yet, but five of seven analysts who cover the stock recommend buying the shares.
Five Star Bancorp
Six insiders scoop up shares of this regional bank.
- Buyer(s): six directors
- Total shares: less than 252,900
- Price per share: $21.75
- Total cost: around $5.5 million
A public offering of stock tempted these directors to pick up Five Star Bancorp. (NASDAQ: FSBC) shares. One of them, who is also a beneficial owner, bought $3 million worth, boosting his stake to over 1 million shares. The company recently announced expansion plans in the San Francisco Bay area, but the stock still is down about 16% year to date. Shares were last seen trading marginally higher than the offering price. The $28.67 consensus price target suggests there is more than 30% upside in the coming year, and two of the three analysts who cover stock recommend buying shares.
Clearway Energy
Energy giant buys into renewable energy.
- Buyer(s): 10% owner TotalEnergies
- Total shares: almost 197,000
- Price per share: $22.54 to $23.08
- Total cost: around $4.5 million
Clearway Energy Inc. (NYSE: CWEN | CWEN Price Prediction) is one of the largest renewable energy owners in the United States, and TotalEnergies S.E. (NYSE: TTE) is a French energy and chemicals giant. The stock was last seen changing hands for more than the purchase price range above. Despite a pop of about 3% in the past week, shares are still down more than 13% year to date. However, that is over 27% higher than the 52-week low of $18.59 seen last fall. Note that, to celebrate its 100th anniversary, TotalEnergies announced that it would allocate some of its shares to its employees worldwide.
Aldeyra Therapeutics
High hopes for dry eye treatment boost stock.
- Buyer(s): 10% owner Perceptive Advisors
- Total shares: almost 504,300
- Price per share: $3.24 to $4.21
- Total cost: over $1.9 million
The CEO and other officers collectively sold more than $724,000 worth of Aldeyra Therapeutics Inc. (NASDAQ: ALDX) shares last month. Now, the biotech and health care focused investment firm has swooped in and boosted its stake to nearly 9.1 million shares. This followed the company revealing its plans to move its dry eye treatment toward FDA approval. That helped the stock pop about 43% in the past week to well above the buyer’s purchase price range. The $9.25 consensus price target suggests the share price could nearly double in the coming year. All five analysts who cover the stock recommend buying shares.
And Other Insider Buying
Additional insider buying at Walgreens and more.
In the past week or so, some insider buying was reported at Consolidated Edison, Dollar Tree, Flowers Foods, Gilead Sciences, Rocket Companies, Ross Stores, Simon Property, U-Haul, and Walgreens Boots Alliance as well.
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