After a painfully slow, and somewhat alarming month for insider buying in January, we saw somewhat of a bounce in volume last week, as fourth-quarter earnings season started to come to a close. Despite the pickup, it’s still worth noting that insider selling volume has dwarfed buying for weeks and could be signaling a top in the market, which has had a huge run since last November's election.
We cover insider buying each week at 24/7 Wall St., and we like to remind readers that while insider buying is usually a very positive sign, it is not in of itself a reason to run out and buy a stock. Sometimes insiders and 10% owners have stock purchase plans set up at intervals to add to their holdings. That aside, it remains an overall positive indicator.
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Here are some of the companies that reported notable insider buying last week.
Tailored Brands Inc. (TLRD) had a 10% owner of the company acquiring more shares last week. Eminence Capital bought a massive 1.1 million shares of the specialty apparel retailer at a share price of $20.00. The total for the buy was posted at $7 million. The stock closed Friday at $21.49, so the timing looks solid. The 52-week trading range is $10.90 to $28.76. The Wall Street consensus price objective is $24.50.
For the second week in a row, 10% owner Elliott International was buying Arconic Inc. (ARNC) shares. The company bought a block of 800,000 shares of the manufacturer of engineered products for aerospace and other markets at prices that ranged from $22.56 to $22.71 per share. The total for the buy was listed at $18 million. The shares closed on Friday at $25.90, so a well-timed purchase. The 52-week range is $15.99 to $25.86, and the consensus price target is $24.80.
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Alliance Data Systems Corp. (ADS), a provider marketing and loyalty solutions, also had a high-profile 10% owner buying shares for the second week running. Hedge Fund ValueAct Holdings purchased a total of 57,400 shares at prices listed between $217.57 and $219.80. The total purchase price for the stock was $13 million. Shares ended last week at $228.14, so another well-timed purchase. The 52-week trading range is $176.63 to $241.69, and the consensus price target is$248.95.
The vice chairman of Live Oak Bancshares Inc. (LOB) also bought stock last week. William Williams picked up a block of 50,000 shares of the North Carolina–based bank at prices between $20.05 and $20.45 a share. The total for the trade was posted at an even $1 million. The stock closed last Friday at $20.65, in a 52-week range of $12.55 to $20.90. The consensus price target is $21.83.