Insider buying can be an encouraging signal for potential investors.
A new chief executive officer at a Dow Jones industrial purchased shares this week.
An executive continued with a recent buying streak 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. So insider buying can be an encouraging signal for potential investors, particularly with markets near all-time highs.
An MGM Resorts International (NYSE: MGM) director stepped up to the buy window this past week. That director indirectly picked up 79,000 shares of this Las Vegas-based company at $29.02 to $29.66 each. This transaction totaled more than $2.32 million and brought the director’s stake to more than 20.6 million shares.
Hopes for a trade deal with China helped buoy the shares this past week. The stock closed most recently at $31.41 a share, above the top of the director’s purchase price range, and up over 7% last week. The shares hit a 52-week high of $31.68 back in July, but analysts now anticipate the share price will go to $33.75.
Assured Guaranty Ltd. (NYSE: AGO) saw its chief investment officer add another 36,700 or so shares in the past week. At prices ranging from $47.26 to $48.51 a share, that totaled more than $1.75 million. Note that this executive has been buying shares since the beginning of October and the stake is up to almost 292,500 shares.
This Bermuda-based credit protection products provider posted mixed third-quarter results last week. It shares were trading at $48.23 each on last look, within the above purchase price range. The stock rose to a new 52-week high of $49.86 per share on Friday, and the consensus price target is at