- Insider buying can be an encouraging signal for potential investors.
- Elon Musk was among those taking advantage of a share offering.
- A director bucked the selling trend at a biotech company as well.
Conventional wisdom says that insiders and 10% owners really only buy shares of a company for one reason — they believe the stock price will rise and they want to profit from it. So insider buying can be an encouraging signal for potential investors, particularly during periods of uncertainty.
Here are a few of significant insider purchases reported last week. Also note that with earnings season winding down, buy windows for many insiders are open again.
Tesla Inc (NYSE: TSLA) CEO Elon Musk took advantage of the recent secondary offering. Via trust, he picked up more than 13,000 shares of this electric vehicle maker at $767.00 apiece. That cost him just shy $10 million. Another director bought 1,250 shares as well.
Tesla stock has been on a tear so far this year, hitting new all-time highs. The share price was last seen at $901, well above Musk’s purchase price. Note that the posted consensus analyst price target is less than $490. The consensus recommendation is to hold shares, and it has been since before the beginning of 2020.
Enterprise Products Partners
An Enterprise Products Partners L.P. (NYSE: EPD) director returned to purchase 200,000 more shares of this midstream energy services provider via trust last week. At $25.71 to $26.33 per share, that totaled more than $5.19 million. That director has bought 850,000 shares so far this month.
The Houston-based company posted disappointing quarterly results at the end of January. The stock is only up about 1% so far this month but still more than 7% lower year to date. Analysts recommend buying the shares, and the consensus target price suggests 32% or so upside from the most recent close.
A director at Moderna Inc (NYSE: MRNA) purchased more than 52,600 shares last week via trust. At $19.00 per share, that cost the director nearly $1.00 million. Note that the CEO and the president of the clinical-stage biotechnology company both were selling shares last week.
This vaccine-developer just received an important FDA approval for its Zika treatment. Shares have retreated more than 5% year to date and ended the week less than a dollar below the director’s purchase price. The consensus price target suggests there is more than 62% upside in Moderna stock.
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.