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Buffett Still Building This Stake, Plus Huge Insider Buy in Biotech IPO
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24/7 Wall St. Insights
- Warren Buffett again boosted his stake in the newly independent Sirius XM Holdings Inc. (NASDAQ: SIRI).
- A biotech IPO prompted huge insider buying as well.
- And other return buyers, including Mexican billionaire Carlos Slim, stepped up again.
- Also: 2 Dividend Legends to Hold Forever.
Beneficial owner Berkshire Hathaway Inc. (NYSE: BRK-B) has once again boosted its stake in Warren Buffett’s favorite media stock. But that is hardly the only notable insider buying in the past week or so. A biotech initial public offering prompted huge insider purchases, but another IPO also makes our list this week. And a couple of repeat buyers, including Mexican billionaire Carlos Slim, also stepped up again. Let’s take a quick look at these transactions.
Is Insider Buying Important?
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.
The earnings-reporting season continues, so many insiders are still prohibited from buying or selling shares. Below are some of the more notable insider purchases that were reported in the past week or so, starting with the largest and most prominent.
Septerna
- Buyer(s): two 10% owners
- Total shares: more than 4.8 million
- Price per share: $18.00
- Total cost: over $86.7 million
Septerna Inc. (NASDAQ: SEPN) is a clinical-stage biotechnology company focused on treating patients in endocrinology, immunology and inflammation, and metabolic diseases. Its upsized initial public offering raised more than $331 million. So far, the shares have traded for $18.62 to $25.62 apiece, and they were last seen changing hands for about 22% more than the IPO price. Note that one of these buyers, R.A. Capital Management, acquired most of these shares, and it recently purchased shares in biotech stocks Bicara Therapeutics Inc. (NASDAQ: BCAX) and Janux Therapeutics Inc. (NASDAQ: JANX) as well.
Sirius XM
- Buyer(s): 10% owner Berkshire Hathaway
- Total shares: over 2.2 million
- Price per share: $26.24 to $27.76
- Total cost: nearly $60.7 million
After scooping up over $42 million worth of shares in the prior week, Berkshire Hathaway returned to add more to its Sirius XM Holdings Inc. (NASDAQ: SIRI) stake. That is up to almost 112 million shares. The company recently completed its spin-off from Liberty Media, and it has hiked its dividend. The stock has gained 12% or so in the past month but is still down more than 9% from six months ago. Shares were last seen trading within the above price range. The $29.93 consensus price target signals about 14% upside in the coming year. Yet, for now, only eight out of 18 analysts recommend buying shares.
PBF Energy
- Buyer(s): 10% owner Control Empresarial de Capitales
- Total shares: 389,000
- Price per share: $28.94 to $31.60
- Total cost: almost $11.7 million
This Carlos Slim-controlled investment firm has been scooping up shares of PBF Energy Inc. (NYSE: PBF) since early June. Now its stake is up to over 25.3 million shares. The New Jersey-based refiner just posted mixed quarterly results and hiked its dividend. The stock has been in retreat since early April, recently hit a new 52-week low, and was last seen below the buyer’s latest purchase price range. Analysts have a mean price target of $33.00, which would be a gain of almost 17% from the current share price. Yet, only six of the 17 analysts who follow the stock recommend acquiring shares.
Ingram Micro
- Buyer(s): CEO Paul Bay and various other insiders
- Total shares: more than 373,300
- Price per share: $22.00
- Total cost: around $8.2 million
Ingram Micro Holding Corp. (NYSE: INGM) also had an IPO, after going private several years ago, and these executives and directors were all over it. The company is a California-based IT services provider with operations around the world. So far, the shares have traded for between $23.01 to $25.69 apiece, and they were last seen trading for over 10% more than the IPO price. Note that the chief executive scooped up about a million dollars worth of shares, and another director (and former CEO) spent nearly $5 million to boost his stake.
Lions Gate Entertainment
- Buyer(s): 10% owner Liberty 77 Capital
- Total shares: over 467,200
- Price per share: $6.58 to $6.75
- Total cost: more than $3.1 million
This same buyer has been scooping up Lions Gate Entertainment Corp. (NYSE: LGF-A) shares since June, including more than $5 million worth in the previous week. When the entertainment giant reported its fiscal first-quarter results in August, they fell short of expectations on both the top and bottom lines. Since the report, the share price is about 8% lower, but it is handily above the buyer’s latest purchase price range. Analysts anticipate around 45% upside in the coming year to their consensus price target of $11.42. Note that the highest price target is still up at $15.
PublicSquare
- Buyer(s): a director
- Total shares: around 1.2 million
- Price per share: $2.70
- Total cost: less than $3.3 million
Florida-based online marketplace operator PSQ Holdings Inc. (NYSE: PSQH) is scheduled to share its third-quarter results soon. Shares are changing hands for over 15% more than on the date of the previous earnings date, much of that gain in the past week or so. The above buyer has seen a gain of about 15% from the purchase price. The only price target is up at $5, which would be a further 61% increase in the coming 52 weeks. And that analyst recommends buying shares.
And Other Insider Buying
In the past week, some insider buying was reported at Advance Auto Parts, Crocs, Hormel, Ibotta, Logitech, Matador Resources, Pfizer, Range Resources, Rocky Mountain Chocolate Factory, St. Joe, and Winnebago as well.
Stock Splits Matter and Here’s What’s Coming Next
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